The state Department of Health properly established rules that capped overhead costs for some childhood early intervention providers and sought to avoid conflicts of interest in child evaluations, a Brooklyn appellate court has ruled.

Reversing a lower court in a decision Wednesday, the Appellate Division, Second Department, said the agency did not exceed its authority and run afoul of the separation of powers doctrine when promulgating the “use of funds” rule and the “conflict of interest” rule.

Writing for the unanimous panel, Justice Thomas Dickerson said the rules on administrative costs and executive compensation were consistent with Public Health Law or “their underlying purpose of obtaining high-quality services with limited available funds.”