If this opinion indicates that it is “FOR PUBLICATION,” it is subject to 

revision until final publication in the Michigan Appeals Reports.

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S T A T E O F M I C H I G A N

C O U R T O F A P P E A L S

FOOD TOWN DRUGS,

Appellant,

UNPUBLISHED

August 11, 2022

v No. 356651

Ingham Circuit Court

DEPARTMENT OF HEALTH AND HUMAN 

SERVICES,

LC No. 19-000719-AA

Appellee.

Before: SWARTZLE, P.J., and RONAYNE KRAUSE and GARRETT, JJ.

PER CURIAM.

The Department of Health and Human Services made Medicaid payments to Food Town 

Drugs, a pharmacy. The Department later conducted an audit and determined that it overpaid Food 

Town. Food Town contested the Department’s decision, but an administrative law judge sided 

with the Department, concluding in a proposal for decision that Food Town must reimburse the 

Department for the Medicaid overpayments. Food Town did not file an exception to the proposal 

for decision and the Department’s director adopted the proposal for decision without elaboration. 

The proposal for decision was entered before the director reviewed the record for this case.

Food Town appealed the director’s decision to the circuit court. The circuit court upheld 

the director’s decision and dismissed Food Town’s appeal, although it concluded that Food Town 

was not required to file an exception to the ALJ’s proposal for decision. This appeal followed, by 

leave granted. Food Town Drugs v Dep’t of Health and Human Servs, unpublished order of the 

Court of Appeals, entered June 23, 2021 (Docket No. 356651). Since that time, this Court decided 

ER Drugs v Dep’t of Health and Human Servs, ___ Mich App ___, ___; ___ NW2d ___ (2022) 

(Docket No. 355108), lv den ___ Mich ___; ___ NW2d ___ (2022) (Docket No. 164340). In ER 

Drugs, this Court concluded that the appellant pharmacy challenging an ALJ’s proposal for 

decision regarding Medicaid overpayments was required to file an exception to that decision in 

order to challenge the Department’s ultimate decision in court. Id. at 2-4. Because the pharmacy 

in ER Drugs failed to do so, this Court affirmed the trial court’s dismissal of the pharmacy’s appeal 

on that basis alone (although the ER Drugs Court did address other issues “for the sake of 

completeness”). Id. at 4. Our Supreme Court denied the application for leave to appeal this Court’s 
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decision in ER Drugs. ER Drugs v Dep’t of Health and Human Servs, ___ Mich ___; ___ NW2d 

___ (2022) (Docket No. 164340).

This case presents the exact same issue as in ER Drugs. Food Town did not file an 

exception to the proposal for decision. Because it failed to do so, it could not challenge the 

Department’s final decision in circuit court. Although the trial court did not dismiss Food Town’s 

appeal on this basis, it nevertheless reached the right result so we affirm its order dismissing Food 

Town’s appeal. See Forest Hills Co-operative v City of Ann Arbor, 305 Mich App 572, 615; 854 

NW2d 172 (2014). Given that ER Drugs dictates the result in this case, we find if unnecessary to 

address the remaining issues raised on appeal.

Affirmed. The Department, as the prevailing party, may tax costs under MCR 7.219.

/s/ Brock A. Swartzle

/s/ Amy Ronayne Krause

/s/ Kristina Robinson Garrett