It's plumbed backwards, but it will work either way. The normal direction of flow is with the line from the oil pressure port plumbed to the side of the filter canister so the oil flows through the filter element from the outside toward the middle, then it passes through a 1/16" hole drilled in the standpipe for flow control and exits the housing from the bottom fitting and drains back into the oil pan. On a 216, I believe the filter outlet is actually plumbed into the passageway that connects the oil distributor to the cylinder head instead of going back to the crankcase.
Jerry