Daniel Senior Living of Inverness I, LLC v. STV One Nineteen Senior Living, LLC

161 So. 3d 196, 2014 WL 803318, 2014 Ala. LEXIS 33
CourtSupreme Court of Alabama
DecidedFebruary 28, 2014
Docket1110588
StatusPublished
Cited by3 cases

This text of 161 So. 3d 196 (Daniel Senior Living of Inverness I, LLC v. STV One Nineteen Senior Living, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel Senior Living of Inverness I, LLC v. STV One Nineteen Senior Living, LLC, 161 So. 3d 196, 2014 WL 803318, 2014 Ala. LEXIS 33 (Ala. 2014).

Opinions

MURDOCK, Justice.

Daniel Senior Living of Inverness I, LLC, d/b/a Danberry at Inverness (“Dan-berry”), successfully appealed to the Court of Civil Appeals from a decision of the Montgomery Circuit Court affirming the issuance by the State Health Planning and Development Agency (“SHPDA”) of a cer-tifícate of need to STV One Nineteen Senior Living, LLC, d/b/a Somerby at St. Vincent’s One Nineteen (“Somerby”) on an “emergency” basis. Daniel Sr. Living of Inverness I, LLC v. STV One Nineteen Sr. Living, LLC, 161 So.3d 187 (Ala.Civ.App.2012). This Court granted Somerby’s petition for certiorari review of the decision of the Court of Civil Appeals. We now affirm that decision.

I. Legal and Factual Background

A. The CON-Review Process Generally

The Alabama Legislature has enacted a statutory scheme to provide for “health care services and facilities found to be in the public interest.” Section 22-21-261, Ala.Code 1975, states:

“The Legislature of the State of Alabama declares that it is the public policy of the State of Alabama that a certificate of need program be administered in the state to assure that only those health care services and facilities found to be in the public interest shall be offered or developed in the state. It is the purpose of the Legislature in enacting this article to prevent the construction of unnecessary and inappropriate health care facilities through a system of mandatory reviews of new institutional health services, as the same are defined in this article.”

To effectuate the aforesaid purpose, the legislature enacted Article 9, “Control and Regulation of Development of Certain Health Care Facilities,” of Title 22, Chapter 21, of the Alabama Code, codified at §§ 22-21-260 to 22-21-278, Ala.Code 1975. Article 9 gives the Statewide Health Coordinating Council (“SHCC”) (see § 22-4-7 and -8, creating the SHCC) responsibility for preparing and periodically revising the State Health Plan (“SHP”), a comprehen[199]*199sive catalogue of the health-care needs of the State. The SHP “provide[s] for the development of health programs and resources to assure that quality health services will be available and accessible in a manner which assures continuity of care, at reasonable costs, for all residents of the state.” Ala.Code 1975, § 22-21-260(13). See Ala. Code 1975, § 22-21-260(13) and (15); Ala. Admin. Code (SHPDA) Rule 410-2-1-.02.

To aid in the administration of the State’s health-planning law, the legislature also created SHPDA, a body composed of three consumers, three health-care providers, and three representatives appointed by the governor. Ala.Code 1975, § 22-21-260(14). Under the state-health-planning laws adopted by our legislature, healthcare providers must apply to SHPDA for a certificate of need (sometimes referred to herein as a “CON”) before offering a new institutional health service, and that service must be consistent with the SHP. Ala.Code 1975, §§ 22-21-263(a), -265(a), and -267; Health Care Auth. of Athens & Limestone Cnty. v. SHCC, 988 So.2d 574, 578 n. 1 (Ala.Civ.App.2008). Institutional health services subject to the CON-application process include, among many other things, converting long-term-care beds from one category to another. Ala.Code 1975, § 22-21-263(a)(3); Ala. Admin. Code (SHPDA) Rule 410-l^t-.01(l)(c)(3)(v).1

In the standard CON-application process, the applicant must file a letter of intent (“LOI”) with SHPDA at least 30 days prior to submitting the CON application. Ala. Admin. Code (SHPDA) Rule 410-l-7-.05(l). Upon determining that an application is complete, SHPDA notifies the applicant and “other affected persons,” such as competing health-care providers, of the application and the review schedule. Ala. Admin. Code (SHPDA) Rule 410-1-7-.08. A mandatory 90-day “review period” or “review cycle” then begins. Ala. Admin. Code (SHPDA) Rule 410-1-7-.09. The other affected persons then have 45 days to submit opposition, if any, to the application, Ala. Admin. Code (SHPDA) Rule 410-1-7-.13, and 55 days to request a contested-case hearing on the application. Ala. Admin. Code (SHPDA) Rule 410-1-7-.15.

The Certificate of Need Review Board (“the CONRB”)2 is required to hold monthly public hearings to review pending applications. Ala. Admin. Code (SHPDA) Rule 410-1-7-.17. As was done in this case, the CONRB can “batch” applications together into the same review cycle for comparative, competitive consideration; the batehed-review cycle takes 180 days. Ala. Admin. Code (SHPDA) Rule 410-1-7-.19.

The CONRB is required to issue a final order granting or denying a CON application within 15 days of the public hearing at which the application was considered. Ala. Admin. Code (SHPDA) Rule 410-1-8-.07(l)(a). A party “aggrieved” by a SHPDA decision may submit a request for reconsideration by the CONRB of its decision within 15 days of that decision, but it is not required to request reconsideration before seeking judicial review. See Ala. [200]*200Code 1975, § 22-21-275(12); Ala. Admin. Code (SHPDA) Rule 410-l-8-.09(l) and (8). The aggrieved party also may, but is not required to, request a fair hearing within 15 days of what would otherwise become the CONRB’s final decision, with or without first submitting a motion for reconsideration. Ala. Admin. Code (SHPDA) Rule 410-1-8-.16.

The fair hearing is a de novo review. Ala.Code 1975, § 22-21-275(14); Ala. Admin. Code (SHPDA) Rule 410-l-8-.22(l). The record of the hearing before the CONRB is part of the record before the administrative law judge presiding at the fair hearing and is entitled only to “due consideration” by the administrative law judge, who is alternately referred to in the regulations and in SHPDA communications as a fair hearing officer (“FHO”). Id. The FHO is required to enter a final order containing findings of fact and conclusions of law, Ala. Admin. Code (SHPDA) Rule 410-1-8-.24, and that order “shall be considered the final decision” of SHPDA, § 22-21-275(14), Ala.Code 1975; Ala. Admin. Code (SHPDA) Rule 410-1-8-25. The FHO’s decision can be appealed to, among other circuit courts, the Montgomery Circuit Court. Ala. Admin. Code (SHPDA) Rule 410-1-8-.24.

The process for filing an emergency-CON application is authorized by § 22-21-268, Ala.Code 1975, which provides:

“Any person may apply, either independently and without notice under Section 22-21-267

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Bluebook (online)
161 So. 3d 196, 2014 WL 803318, 2014 Ala. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-senior-living-of-inverness-i-llc-v-stv-one-nineteen-senior-living-ala-2014.