Bethesda Hospital, Inc. v. Certificate of Need Review Board

6 Ohio App. Unrep. 297
CourtOhio Court of Appeals
DecidedAugust 30, 1990
DocketCase No. 89AP-1269
StatusPublished

This text of 6 Ohio App. Unrep. 297 (Bethesda Hospital, Inc. v. Certificate of Need Review Board) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bethesda Hospital, Inc. v. Certificate of Need Review Board, 6 Ohio App. Unrep. 297 (Ohio Ct. App. 1990).

Opinion

YOUNG, J.

This matter is before this court upon the appeal of the Ohio Department of Health ("ODH") from a judgment of the Franklin County Court of Common Pleas in favor of appellee, Bethesda Hospital,Inc ("Bethesda"). The trial court overruled ODH's motion to dismiss, reversed the order of the Certificate of Need Review Board ("CONRB") and found that Bethesda's proposed project of an open-heart surgery service was not a reviewable activity pursuant to R.C. 3702.51(R).

In January 1987, Bethesda filed an application and requested that ODH conduct a certificate of need reviewability determination in regard to Bethesda's proposed project for an open-heart surgery service Bethesda's written request stated that there were no capital expenditure costs and that operating costs and major medical equipment costs would be less than the review-ability cost thresholds set forth in R.C. 3702.51(R) (2) and (4), and Ohio Adm. Code 3701-12-05(A), (CX2) or (DXl). ODH, basing its decision on Ohio Adm. Code 3701-12-05(CXlXa), determined that the proposed health service was reviewable and would be a new health service offered by Bethesda and would require some capital expenditure.

Bethesda appealed this decision to CONRB in May 1987. After a hearing, the hearing examiner recommended that CONRB reverse the decision of ODH and find that Bethesda's proposed project was not reviewable. On January 7,1988, CONRB adopted the hearing examiner's report and recommendation. On January 27, 1988, ODH [298]*298filed a motion for reconsideration asking CONRB to remand the case so that ODH could review and analyze the proposed annual operating and mqjor medical equipment costs pursuant to R.C. 3702.51(R).

On March 29, 1988, CONRB granted ODH's motion for reconsideration and remanded the matter to ODH for further analysis under R.C. 3702.5KR). CONRB found that the criteria under which ODH found the project reviewable, Ohio Adm. Code 3701-12-05(CXlXa), was invalid and that ODH was procedurally in error by not reviewing theprojectpursuantto R.C. 3701.5KR) and Ohio Adm. Code 3701-12-05.

Thereafter, Bethesda appealed this decision to the Franklin County Court of Common Pleas, pursuant to R.C. 119.12 and 3705.58. The appeal was submitted to the trial court upon the parties' respective briefs. ODH filed a motion to dismiss, asserting that the remand from CONRB to ODH was not a final appeal able order and thus, the court of common pleas did not have jurisdiction. In the alternative, ODH filed a motion for remand so that the matter could be remanded to the director of health for further review pursuant to R.C. 3702.5KRX2) and (4).

In July 1989, the referee issued his report and recommended that ODH's motion to dismiss be denied, and that CONRB's decision be reversed on the basis that Bethesda'sproposed open-heart surgery service was not a reviewable activity pursuant to R.C. 3702.5KR). The trial court adopted the report and recommendation of the referee and thereafter, this appeal ensued. ODH asserts the following six assignments of error:

"I. THE COURT OF COMMON PLEAS ERRED IN APPLYING OHIO REV. CODE §3702.58 AS AMENDED, EFFECTIVE JULY 1,1987, RATHER THAN OHIO REV. CODE §3702.58 AS AMENDED EFFECTIVE JULY 1,1985, TO THE FACTS UNDER REVIEW.

"II. THE COURT OF COMMON PLEAS ERRED IN FINDING THAT IT WAS VESTED WITH JURISDICTION TO HEAR BETHESDA HOSPITAL, INC.'S APPEAL OF THE CERTIFICATE OF NEED REVIEW BOARD’S ORDER OF REMAND.

"HI. THE COURT OF COMMON PLEAS ERRED IN FINDING THAT THE CERTIFICATE OF NEED REVIEW BOARD LACKED THE AUTHORITY TO ENTERTAIN THE OHIO DEPARTMENT OF HEALTH'S MOTION FOR RECONSIDERATION.

"IV. THE COURT OF COMMON PLEAS ERRED IN FINDING THAT THE CERTIFICATE OF NEED REVIEW BOARD IMPROPERLY CONSIDERED AND RELIED UPON EVIDENCE OUTSIDE THE RECORD IN GRANTING OF THE OHIO DEPARTMENT OF HEALTH’S MOTION FOR RECONSIDERATION.

"V. THE COURT OF COMMON PLEAS ERRED IN FINDING THAT THE CERTIFICATE OF NEED REVIEW BOARD'S ORDER OF REMAND WAS NEITHER SUPPORTED BY RELIABLE, PROBATIVE OR SUBSTANTIAL EVIDENCE NOR IN ACCORDANCE [sic] WITH LAW.

"VI. THE COURT OF COMMON PLEAS ERRED IN FINDING THAT BETHESDA'S PROPOSED OPEN HEART SURGERY SERVICE WAS NOT A REVIEWABLE ACTIVITY PURSUANT TO OHIO REV. CODE §3701.5ICR) WHERE SAID DECISION IS NEITHER SUPPORTED BY RELIABLE, PROBATIVE OR SUBSTANTIAL EVIDENCE NOR IN ACCORDANCE WITH LAW."

In its first assignment of error, ODH asserts that the court of common pleas erred in applying R.C. 3702.58, as amended effective July 1,1987, rather than R.C. 3702.58, as amended effective July 1,1985. H.B. 499, Section 9(A), provides, in part:

"Section 9. All appeals pending before the Certificate of Need Review Board of July 1,1987 shall be considered as follows:

"(A) If the appeal has been filed but no hearing has commenced, a preconferece hearing shall be held on or before January 1, 1988 and an adjudication hearing shall be conducted by a hearing examiner within forty-five days after the conclusion of the preconference hearing, regardless of whether a preconference hearing was held before July 1, 1987. The hearing examiner shall conduct the hearing and render a recommendation within thirty days of the conclusion of the hearing based on sections 3702.51 to 3702.62 and 3702.99 of the Revised Code as they were in effect prior to the effective date of Section 1 of this act."

[299]*299This court finds that H.B. 499, Section 9(A), is applicable in this casa On May 6, 1987, after ODH determined that appellee's proposed health service was reviewable, Bethesda filed an appeal with CONRB. A prehearing conference was held by telephone on August 28, 1987, whereby the parties agreed that there were no factual disputes associated with the appeal. The parties agreed to submit the matter to the hearing examiner upon their briefs only, rather than conducting a formal adjudication hearing, and the initial brief was to be filed September 28, 1987. Thus, when the final brief was submitted on October 30,1987, the "hearing" was concluded. Consequently, pursuant to H.B. 499, Section 9(A), R.C. 3702.51 through 3702.62, and 3702.99, as they were in effect prior to the effective date of the June 30,1987 amendments to R.C. 3702.58, are applicable to this casa Therefore, the trial court erred when it applied both interpretations of R.C. 3702.58 since H.B. 499, Section 9 clearly sets forth that R.C. 3702.58(D), as amended effective June 1985, was applicable to the facts of this casa

Accordingly, appellants' first assignment of error is sustained.

In its third assignment of error, ODH asserts that CONRB lacked the authority to entertain ODH's motion for reconsideration. The court of common pleas found that CONRB lacked the authority to entertain ODH's motion for reconsideration because CONRB's minutes reflect that CONRB had decided to issue an order affirming the decision of the hearing examiner, that Bethesda's proposed open-heart suxgery service was not a reviewable activity. However, because CONRB did not reduce this "order" to writing within the time limits imposed by statute; the trial court found that the recommendation of the hearing officer became the final decision of the CONRB.

R.C. 3702.58(D), as it was in effect prior to the June 30, 1987 amendment, provides, in pertinent part:

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6 Ohio App. Unrep. 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bethesda-hospital-inc-v-certificate-of-need-review-board-ohioctapp-1990.