Brookwood Hlth. Serv. v. Baptist Hlth. Sys.

936 So. 2d 529
CourtCourt of Civil Appeals of Alabama
DecidedJune 30, 2005
Docket2031014 and 2031015
StatusPublished

This text of 936 So. 2d 529 (Brookwood Hlth. Serv. v. Baptist Hlth. Sys.) 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 Hlth. Serv. v. Baptist Hlth. Sys., 936 So. 2d 529 (Ala. Ct. App. 2005).

Opinion

936 So.2d 529 (2005)

BROOKWOOD HEALTH SERVICES, INC., d/b/a Brookwood Medical Center
v.
BAPTIST HEALTH SYSTEM, INC., d/b/a Shelby Baptist Medical Center.
Alabama State Health Planning and Development Agency
v.
Baptist Health System, Inc., d/b/a Shelby Baptist Medical Center.

2031014 and 2031015.

Court of Civil Appeals of Alabama.

June 30, 2005.
Rehearing Denied November 18, 2005.

*531 John T. Mooresmith, John C. Morrow, and F.A. Flowers III of Burr & Forman, LLP, Birmingham, for appellant Brookwood Health Services, Inc., d/b/a Brookwood Medical Center.

Mark D. Wilkerson and Dana H. Billingsley of Wilkerson & Bryan, P.C., Montgomery, for appellant State Health Planning and Development Agency.

M. Ann Huckstep and Laurence J. McDuff of Adams & Reese/Lange Simpson, LLP, Birmingham; Fournier J. Gale III and Stephen W. Still of Maynard, Cooper & Gale, P.C., Birmingham; Frank C. Ellis, Jr., of Wallace, Ellis, Fowler & Head, Columbiana; and Hewitt L. Conwill of Conwill & Justice, Columbiana, for appellee.

PITTMAN, Judge.

This appeal concerns the propriety of an administrative order denying authority to a hospital to operate a cardiac-surgery center.

On August 28, 2000, Baptist Health System, Inc. ("Baptist"), which operates Shelby Baptist Medical Center ("Shelby Baptist") in Alabaster, filed an application with Alabama's State Health Planning and Development Agency ("SHPDA") seeking a Certificate of Need ("CON") permitting Baptist to offer therapeutic cardiac catheterization and open-heart surgery at Shelby Baptist. Brookwood Health Services, Inc., which operates Brookwood Medical Center ("Brookwood") in southern Jefferson County, sought to intervene and requested a contested-case hearing (see § 41-22-12, Ala.Code 1975); after Brookwood was permitted to intervene, a hearing was conducted before an administrative law judge ("ALJ").

After that hearing, the ALJ issued a 24-page document containing recommended findings of fact and conclusions of law on March 6, 2002; in that document, the ALJ opined that SHPDA's Certificate of Need Review Board ("CONRB") should approve the Shelby Baptist CON application. However, upon review of the ALJ's recommendations, SHPDA's CONRB issued an order on May 2, 2002, denying the CON application. In pertinent part, the CONRB's order contained the following determinations:

"After careful review of the record, the Recommended Order and the exceptions thereto, the [CONRB] has determined that the ALJ reached the wrong conclusions in applying the applicable review criteria to his factual findings. In so doing, the CON[RB] is not rejecting the ALJ's Recommended Findings of Fact, which are hereby adopted to the extent the same are not inconsistent with this Order.
". . . Ala. Admin. Code [r.] 410-1-2.03 states that `in the absence of a designated geographical service area for a particular service, the county in which the service is to be provided shall be deemed to be the health service area.' Ala. Admin. Code [r.] 410-2-3-.03(3) addresses open-heart surgery[;] however, this particular subsection of the State Health Plan (SHP) does not designate a specific health service area.1 For this reason, the ALJ found that the `health service area' in [this case] was Shelby County, where the services proposed are to be provided. Planning Policy 3 requires that `There shall be no additional adult open heart units initiated unless each existing unit in the health service area is operating and is expected to continue to operate at a minimum of 350 *532 adult open heart operations per year.' Id. (emphasis added). Since there were no other open-heart providers in Shelby County, the [ALJ] found that the application was consistent with the guideline contained in Planning Policy 3.
". . . In other instances, the SHP and the SHPDA Rules refer generally to a provider's `service area' as opposed to the defined term `health service area'. In [a 1998 order issued in another contested case], the [CONRB] found that while SHPDA rules arguably provide that the `health service area' for purposes of Planning Policy 3 should be limited to the county in which the service is provided, other statutes and regulations give the [CONRB] the right to consider the impact of the project on providers outside of the county. In upholding this finding, the Fair Hearing Officer stated:
"`The [CONRB] correctly recognized that while the "health service area" mentioned in Planning Policy 3 may, according to [r.] 410-1-2-.03 of the SHPDA Rules, pertain to Calhoun County, the consideration of the impact on Birmingham open heart surgery programs is required under [r.] 410-1-[6-].06(1)(e) which states in pertinent part:
"`"When the service area of the proposed facility or service overlaps the service of an existing facility or service, then the effect on the existing service or facility . . . shall be considered."'
". . . Ala.Code [1975,] § 22-21-266(3). . . requires a finding that `existing inpatient facilities providing inpatient services similar to those proposed are being used in an appropriate and efficient manner consistent with community demands for services,' i.e., there must be a community need for the proposed service. Such a conclusion must be made prior to the approval of any new inpatient facilities or services. Id.
". . . The [CONRB] finds, as a matter of law, that it may consider the impact of the Shelby Baptist proposal on Brookwood and similarly situated facilities, the manner in which such facilities are currently available to serve the needs of the patients in Shelby Baptist's proposed service area, and the quality of service provided by such high volume, established sites to area residents.2 Taking these factors into consideration, the [CONRB] differs with the conclusions reached by the [ALJ] as to need and finds that the project should be denied."
"1 In contrast, Ala. Admin. Code [r.] 410-2-3-.03(1) which addresses cardiac catheterization services specifically mentions counties in its planning policies.
"2 The [CONRB] notes that Shelby County considers the patient base of the proposed facility to extend beyond Shelby County."

Because the CONRB's order was issued after the application had already been considered by an ALJ as a contested case, and because reconsideration of the CONRB's decision was not sought, the denial of the application by the CONRB constituted the "final order" of SHPDA under Ala.Code 1975, § 22-21-275(14), as amended in 1998.[1]

*533 Baptist sought judicial review in the Shelby Circuit Court of SHPDA's denial of the CON application; Brookwood was permitted to appear in those review proceedings as an intervenor. After all of the judges of the circuit court had recused themselves, the Chief Justice of the Alabama Supreme Court appointed a judge from another circuit to decide the case. On July 13, 2004, the circuit court entered a judgment reversing the denial of the Shelby Baptist CON application and directing SHPDA to issue the requested CON.

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Brookwood Health Services, Inc. v. Baptist Health System, Inc.
936 So. 2d 529 (Court of Civil Appeals of Alabama, 2005)

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Bluebook (online)
936 So. 2d 529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brookwood-hlth-serv-v-baptist-hlth-sys-alacivapp-2005.