Centennial Villas, Inc. v. Department of Social & Health Services

733 P.2d 564, 47 Wash. App. 42
CourtCourt of Appeals of Washington
DecidedMarch 2, 1987
Docket[Nos. 8537—2—II; 9619-6-II; 9821—1—II; 9822-9-II; 9823-7-II; 9824-5-II; 10185-8-II
StatusPublished
Cited by2 cases

This text of 733 P.2d 564 (Centennial Villas, Inc. v. Department of Social & Health Services) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Centennial Villas, Inc. v. Department of Social & Health Services, 733 P.2d 564, 47 Wash. App. 42 (Wash. Ct. App. 1987).

Opinions

Petrich, J.

The State of Washington, Department of Social and Health Services (DSHS), appeals from summary judgments of the Thurston County Superior Court declaring that existing health care facilities need not apply for a second certificate of need before providing home health care services. The dispositive issue in this consolidated appeal is whether the offering of home health care services, which were not previously offered by an existing health care facility, qualifies it as a new health care facility for purposes of RCW 70.38.105(4)(a), thus requiring certificate of need (CON) review. We conclude that the supplying of home health care services as new and additional services by existing health care facilities is the creation of a "new health care facility" within the meaning of RCW 70.38-.105(4)(a). As such, existing health care facilities must obtain CON review before commencing home health care services. Accordingly, we reverse.

The respondents, Centennial Villas d/b/a Sherwood Terrace Nursing Center; Sisters of St. Joseph of Peace Health and Hospital Services; St. Joseph Hospital and Health Care [45]*45Center; Kadlec Medical Center; Coulee Community Hospital Association; King County Hospital District No. 2; and Grays Harbor Community Hospital, are nursing homes and hospitals in the state of Washington duly licensed to provide nursing home or hospital services. Each possesses a certificate of need for its individual operation.

Each of the respondents sought a ruling from DSHS that a second CON review need not be undergone before engaging in home health care services because the proposed capital expenditure would be less than the $500,000 threshold of RCW 70.38.105(4)(g). DSHS concluded that the provision of home health care services by the respondents constituted a new health care facility as defined by RCW 70.38.105(4) (a) and ruled that the respondents would have to undergo another CON review prior to providing such services.

After exhausting administrative remedies, the respondents sought declaratory and injunctive relief in the Thurs-ton County Superior Court. On July 23, 1984, the first summary judgment, in favor of respondent Sherwood Terrace, was entered. The trial court held that an existing health care facility that provides home health care services is not a "new health care facility" within the meaning of RCW 70.38.105(4)(a). Therefore, the existing facility need not undergo an additional CON review. Further, the court held that the existing facility need not undergo an additional CON review under RCW 70.38.105(4) (g) because the facility's "new institutional health services" did not exceed the annual $500,000 operating budget threshold. This holding was applied in all summary judgment proceedings between the State and the other respondents. DSHS appeals. The seven appeals have been consolidated.

DSHS contends that existing health care facilities that provide home health care services are "new health care facilities]" under RCW 70.38.105(4)(a), thus requiring CON review before providing such services. The respondents argue that home health care services are "new institutional health services" under RCW 70.38.105(4)(g) and, [46]*46as such, are exempt from CON review if the annual operating costs do not exceed $500,000.

This is a case of first impression to which we must apply the principles of statutory construction. "In construing statutes, the goal is to carry out the intent of the Legislature." Seven Gables Corp. v. MGM/UA Entertainment Co., 106 Wn.2d 1, 6, 721 P.2d 1 (1986). The court's interpretation must make the statute purposeful and effective. Seven Gables. Any statutory interpretation that would render an unreasonable and illogical consequence should be avoided. Seven Gables. Where statutes relate to the same subject matter, the entire sequence of statutes relating to a given subject must be considered in determining the legislative purpose. See Beach v. Board of Adj., 73 Wn.2d 343, 438 P.2d 617 (1968); In re Marriage of Little, 96 Wn.2d 183, 634 P.2d 498 (1981). If a statute is unambiguous, the meaning must be derived from the actual language of the statute. Stewart Carpet Serv., Inc. v. Contractors Bonding & Ins. Co., 105 Wn.2d 353, 358, 715 P.2d 115 (1986). Absent statutory definition, words used in a statute are to be given their usual and ordinary meaning. See Garrison v. State Nursing Bd., 87 Wn.2d 195, 550 P.2d 7 (1976).

Here, the statute in question, RCW 70.38.105(4) (a) and (4)(g), is not ambiguous because the statute contains definitions. Therefore, the meaning of the statute must be derived from its language and from definitions contained in related statutes. See Stewart Carpet; Beach v. Board of Adj., supra.

The certificate of need statute, RCW 70.38.105(4) contains eight subsections that describe the types of changes made by a health care facility which would subject it to certificate of need review. The extension of services to include home health care brings two sections of RCW 70.38.105(4) into play. First, RCW 70.38.105(4)(a) provides that ”[t]he construction, development, or other establishment of a new health care facility" is subject to CON review. Second, RCW 70.38.105(4)(g) provides that "[a]ny new institutional health services which are offered in or [47]*47through a health care facility, and which were not offered on a regular basis . . . within the twelve-month period prior to the time such services would be offered" are subject to CON review.

"Health care facility" is defined in RCW 70.38.025(7) as "hospices, hospitals, . . . nursing homes, kidney disease treatment centers, . . . and home health agencies . .

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Related

State v. Yokley
959 P.2d 694 (Court of Appeals of Washington, 1998)
State v. John
849 P.2d 1268 (Court of Appeals of Washington, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
733 P.2d 564, 47 Wash. App. 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centennial-villas-inc-v-department-of-social-health-services-washctapp-1987.