Cospito v. Heckler

742 F.2d 72, 1984 U.S. App. LEXIS 19649, 6 Soc. Serv. Rev. 236
CourtCourt of Appeals for the Third Circuit
DecidedAugust 10, 1984
DocketNos. 83-5201, 83-5202
StatusPublished
Cited by43 cases

This text of 742 F.2d 72 (Cospito v. Heckler) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cospito v. Heckler, 742 F.2d 72, 1984 U.S. App. LEXIS 19649, 6 Soc. Serv. Rev. 236 (3d Cir. 1984).

Opinions

OPINION OF THE COURT

GARTH, Circuit Judge:

Appellants Douglas Cospito, et al., (“the Patients”) are or have been patients at the Trenton Psychiatric Hospital (“TPH”). In 1975, TPH lost its accreditation from codefendant Joint Commission on Accreditation of Hospitals (“JCAH”). As a result, codefendant Secretary of the Department of Health, Education, and Welfare (now the Department of Health and Human Services) terminated various federal benefits which were conditioned upon the beneficiaries being treated at a qualified psychiatric hospital. Those benefits were denied until TPH reacquired its accreditation several years later.

The Patients brought this action in district court challenging the loss of their federal benefits on several constitutional [75]*75grounds. After lengthy discovery, cross motions were made for summary judgment on various legal issues. The district court found in favor of the defendants on sufficient issues to dismiss all claims made by the Patients. For the reasons expressed below, we will affirm the dismissal of the action.

I.

A.

Trenton Psychiatric Hospital is a state facility located in Trenton, New Jersey, and is operated as a component of the Division of Mental Health and Hospitals, New Jersey State Department of Human Services. It treats both voluntarily and involuntarily committed patients for mental disease. The facilities itself consist of a complex of buildings, divided into Units for adult patients, geriatric patients, and children (ages 6 through 17).

Beginning in 1973, TPH was surveyed under the standards for “psychiatric facilities” recently promulgated under the auspices of JCAH.1 Following the 1973 survey, major deficiencies were disclosed in several areas, including patient treatment, staffing, environment, and fire safety. TPH was accredited for only one year, and was notified that these deficiencies must be corrected to maintain accreditation. In 1974, however, many of the same deficiencies were found again. A preliminary decision was made by JCAH not to accredit. At TPH’s request, a resurvey was conducted in May, 1975, which again resulted in a preliminary decision not to accredit. TPH did not appeal from that decision, and the deaccreditation became final.

In 1976, TPH requested that the Children’s Unit of the hospital be evaluated separately. JCAH thereupon reviewed the data which had been collected during the previous 1975 survey, and concluded that, standing alone, the Children’s Unit had met the requisite standards, and therefore retroactively restored its accreditation. TPH also sought reaccreditation of the Adult Unit of the hospital in 1977 and 1979, but both times JCAH determined that accreditation should not be granted. Finally, in 1981, following another survey by JCAH, the Adult Unit regained its accreditation, and continues to operate under that approval today.

B.

JCAH is an Illinois not-for-profit corporation formed in 1951 for the purpose of creating and maintaining professional standards for evaluating hospital performance. The body is governed by a twenty-two member Board of Commissioners. Its constituent members consist of the American College of Physicians, the American College of Surgeons, the American Dental Association, the American Hospital Association, and the American Medical Association.

Prior to the events at TPH, JCAH had formed various accreditation councils to advise the Board of Commissioners on the establishment of standards for accreditation of health care facilities. It was the Accreditation Council for Psychiatric Care which presented to the Board the criteria for inspection of psychiatric hospitals under which TPH was examined in 1975.2 The survey itself consists of an on-site visit conducted by a team of surveyors designated by JCAH. The surveyors evaluate the quality of the facility’s environment and review its administrative records to determine whether they conform to applicable standards.3 From the information collected during this survey, the Accreditation [76]*76Committee makes a preliminary decision to accredit or not to accredit. Should the preliminary decision be adverse to the facility, it is entitled to review by the Accreditation Council and to ultimate review by JCAH’s Board of Commissioners.

JCAH accreditation, however, must be distinguished from certification by the Secretary for eligibility in federal assistance programs. While JCAH accreditation may, depending on the circumstances, be a component of certification, the two are not necessarily coextensive, and at least as a matter of terminology, we will refer to the two separately.

C.

The Patients at TPH had, before decertification by the Secretary, been the beneficiaries of three types of federally funded benefits: (1) Medicare, (2) Medicaid, and (3) Supplemental Social Security Income.

1. Medicare

Medicare is a federally funded health insurance program for those over the age of 65, which provides basic protection against the costs of hospital and related post-hospital services. 42 U.S.C. §§ 1395-1395x. Among the institutions eligible to participate in this program are “psychiatric hospitals,” as defined in 42 U.S.C. § 1395x(f):

The term “psychiatric hospital” means an institution which—
(1) is primarily engaged in providing, by or under the supervision of a physician, psychiatric services for the diagnosis and treatment of mentally ill persons;
(2) satisfied the requirements of paragraphs (3) through (9) of subsection (e)'of this section;
(3) maintains clinical records on all patients and maintains such records as the Secretary finds to be necessary to determine the degree and intensity of the treatment provided to individuals entitled to hospital insurance benefits under part A;
(4) meets such staffing requirements as the Secretary finds necessary for the institution to carry out an active program of treatment for individuals who are furnished services in the institution; and

(5) is accredited by the Joint Commission on Accreditation of Hospitals. (Emphasis added).

The statute further provides, however, that:

In the case of an institution which satisfied paragraphs (1) and (2) of the preceding sentence and which contains a distinct part which also satisfies paragraphs (3) and (4) of such sentence, such distinct part shall be considered to be a “psychiatric hospital” if the institution is accredited by the Joint Commission on Accreditation of Hospitals or if such distinct part meets requirements equivalent to such accreditation requirements as determined by the Secretary.

Id. (emphasis added). Under this “distinct part” survey, an institution may bypass JCAH accreditation and seek certification directly from the Secretary for such of its parts that qualify. Indeed, nothing precludes the certification of an entire institution through successive “distinct part” surveys.

2. Medicaid

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Bluebook (online)
742 F.2d 72, 1984 U.S. App. LEXIS 19649, 6 Soc. Serv. Rev. 236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cospito-v-heckler-ca3-1984.