Brookwood Health Services, Inc. v. State Health Planning & Development Agency

202 So. 3d 345, 2016 Ala. Civ. App. LEXIS 24
CourtCourt of Civil Appeals of Alabama
DecidedJanuary 22, 2016
Docket2140766
StatusPublished
Cited by1 cases

This text of 202 So. 3d 345 (Brookwood Health Services, Inc. v. State Health Planning & Development Agency) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brookwood Health Services, Inc. v. State Health Planning & Development Agency, 202 So. 3d 345, 2016 Ala. Civ. App. LEXIS 24 (Ala. Ct. App. 2016).

Opinions

THOMAS, Judge.

In June 2014, in compliance with Ala. Admin. Code (State Health Planning and Development Agency), Rule 410-1-7-.05, Affinity Hospital, LLC, d/b/a Trinity Medical Center of Birmingham (“Trinity”), filed with the State Health Planning and Development Agency (“SHPDA”) a letter of intent proposing to relocate its radiation-oncology services and two linear accelerators, which were housed at Trinity’s former hospital campus on Montclair Road in Birmingham (“the Montclair campus”), to a new building to be constructed on the new campus of Trinity’s hospital, which is located on Highway 280 (“the Grandview campus”). In November 2014, Trinity filed an application with SHPDA in which it sought a certificate of need (“CON”) to construct a new comprehensive cancer center (“the Grandview cancer center”) on a site on the Grandview campus and to relocate its radiation-oncology services and linear accelerators to that site. Brookwood Health Services, Inc., d/b/a/ Brookwood Medical Center (“Brookwood”), intervened in the proceeding and filed an opposition to Trinity’s plan to relocate its radiation-oncology services to the Grandview campus; Brookwood also requested a contested-case hearing on the matter. SHPDA assigned the matter to an administrative-law judge (“ALJ”), who proceeded to hold a three-day contested-case hearing in March 2015.

The transcript of the contested-case hearing consists of 1,139 pages. The parties introduced exhibits comprising more than 3,300 pages of the 27-volume record. At the conclusion of the contested-case hearing, the ALJ entered a 55-page recommendation containing findings of fact and conclusions of law in which he determined that Trinity’s request was governed by Ala. Admin. Code (SHPDA), Rule 410-2-4-.14, and that Trinity’s CON application met all the required elements for approval. Brookwood filed exceptions to the ALJ’s findings of facts and conclusions of law. SHPDA’s Certificate of Need Review Board (“the CONRB”) held a hearing on the matter on May 20, 2015, and it [347]*347entered an order approving the requested CON on June 4, 2015, in which it adopted the findings of fact and conclusions of law set out in the ALJ’s recommendation. Brookwood filed a notice of appeal to this court in accordance with Ala.Code 1975, § 22-21-275(6). Brookwood seeks review of the CONRB’s order issuing the CON to Trinity.

As noted above, the record in this case is voluminous. The parties presented testimony and numerous documents to support their respective positions. We will not exhaustively detail the evidence presented; instead, we will summarize the evidence necessary to the resolution of the issues on appeal.

Dr. Elbert Duncan, a radiation oncologist who has practiced at Trinity’s campuses, testified that placing medical oncologists and radiation oncologists at a comprehensive cancer center like the Grandview cancer center would make receiving necessary services easier on cancer patients and would foster better collaboration between doctors, thereby advancing the treatment of their patients. Dr. James Kamplain, another radiation oncologist who has practiced at Trinity’s campuses and who serves as chairman of the Trinity cancer committee, testified that coordination of cancer services in a comprehensive cancer center would facilitate coordinated care; he noted that cancer patients often require both medical-oncology therapy and radiation-oncology therapy, sometimes on the same day, making the proximity of where those services are provided vitally important to their execution. Dr. Kam-plain explained that a comprehensive cancer center like the Grandview cancer center would be a “one-stop shop” allowing for easy communication and coordination of services and treatment. Dr. Jimmie Harvey, a third radiation oncologist who has practiced at Trinity’s campuses, testified that the standard of care for oncology required that medical oncology and radiation oncology be practiced in a comprehensive cancer center.

Dr. Duncan testified regarding the challenges facing Trinity’s radiation-oncology services if they remained housed at the Montclair campus. He explained that the medical oncologists were located in a different building on the other side of the Montclair campus from the building housing the radiation oncologists and that those patients who needed to see both a medical oncologist and a radiation oncologist on the same day for treatment had to travel between the separate buildings, which he described as somewhat difficult, especially for those who were extremely ill or elderly. Dr. Kamplain testified that the physical -distance between the medical oncologists and the radiation oncologists at the Montclair campus had hindered communication between the physicians, nurses, and technicians, which, in turn, had caused issues for those patients receiving combined medical-oncology and radiation-oncology treatment. Dr. Duncan, Dr. Kamplain, and Dr. Harvey testified that requiring cancer patients to travel between medical-oncology offices and radiation-oncology offices (and perhaps a hospital if more critical care was needed during or after treatment) was not ideal for treatment purposes.

Paul Graham, the chief administrative officer of Trinity, testified that he had prepared the projections to support Trinity’s CON application. He said that he based his projections on historical trends and knowledge of the market instead of on population statistics, cancer-incidence rates, or utilization rates. According to Graham, radiation-oncology services are not “money makers” for hospitals. He admitted that providing radiation-oncology [348]*348services had resulted in a net loss of $7,811 for Trinity in 2013; however, he projected that in the second year of operation of the Grandview cancer center, the center would yield a net income of just over $88,000 based, in large part, on an increase in patient volume. Although Daniel Sullivan, an expert in health-care financial analysis hired by Brookwood to analyze Trinity’s CON application, testified that the projected increase in patients expected by Graham was not reasonable, Marty Chafín, a health-care consultant who testified in favor of Trinity, testified that an increase in patients was not unreasonable, in part because of the expected increase in the over-65 population in the 7-county medical-service area from which Trinity’s radiation-oncology services draws its patients. In addition, Chafín, Rick Kolaczek, the director of radiology and the cancer center at Trinity, and Dr. Duncan all testified that the increase in patients would result from the move to a new one-stop facility offering a multi-disciplinary approach to cancer treatment, which, they all stated, would make the Grandview cancer center more attractive to prospective patients.

The evidence regarding cancer-incidence rates was sharply conflicting. Donald Wise, a health-care analytics consultant, testified that the National Cancer Institute (“NCI”) had reported that the cancer-incidence rates for the seven-county medical-service area Trinity served were either stable or falling. He also opined that the market was “mature” and that little growth was expected because the incidence fates in the largest county in the medical-service area, Jefferson County, were falling. Wise testified that the population of the medical-service area was also stable.

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Bluebook (online)
202 So. 3d 345, 2016 Ala. Civ. App. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brookwood-health-services-inc-v-state-health-planning-development-alacivapp-2016.