DHRS v. Florida Medical Center

578 So. 2d 351, 1991 WL 46822
CourtDistrict Court of Appeal of Florida
DecidedApril 9, 1991
Docket89-2019
StatusPublished
Cited by2 cases

This text of 578 So. 2d 351 (DHRS v. Florida Medical Center) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DHRS v. Florida Medical Center, 578 So. 2d 351, 1991 WL 46822 (Fla. Ct. App. 1991).

Opinion

578 So.2d 351 (1991)

DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, Appellant,
v.
FLORIDA MEDICAL CENTER, NME Hospitals, Inc., and Florida Hospital, Appellees.

No. 89-2019.

District Court of Appeal of Florida, First District.

April 9, 1991.
Rehearing Denied May 14, 1991.

*352 Lesley Mendelson, Dept. of Health and Rehabilitative Services, Tallahassee, for appellant.

Eric B. Tilton, Tallahassee, for appellee, Florida Medical Center.

C. Gary Williams and Stephen C. Emmanuel of Ausley, McMullen, McGehee, Carothers & Proctor, Tallahassee, for appellee, NME Hospitals, Inc.

Robert T. Klingbeil, Jr. of Boone, Boone, Klingbeil, Boone & Roberts, Venice, for appellee, Florida Hosp.

ALLEN, Judge.

The Department of Health and Rehabilitative Services appeals from an order wherein a hearing officer of the Division of Administrative Hearings determined, following a Section 120.54(4), Florida Statutes, validity hearing, that a proposed rule was invalid because changes made in the proposed rule failed to comply with the provisions of Section 120.54(13)(b), Florida Statutes. The appellant argues that the appellees' petitions for a 120.54(4) hearing, filed within 21 days following the appellant's publication of notice of the change in the proposed rule, but more than 21 days following the original notice of the proposed rule, were untimely. The appellant also argues that the hearing officer erred in determining that the changes in the proposed rule failed to comply with the provisions of Section 120.54(13)(b). We hold that the appellees' petitions were timely, and that the hearing officer's determination that the changes did not comply with Section 120.54(13)(b) was supported by competent substantial evidence.

In accordance with the requirements of Section 120.54(1),[1] on April 22, 1988, the *353 appellant caused notice to be published in the Florida Administrative Weekly of proposed Rule 10-5.011(1)(e). A major component of the new rule was establishment of criteria for issuance of certificates of need for adult cardiac catheterization programs. The proposed rule emphasized the proposed policy of the appellant to avoid "the unnecessary duplication of services" in its issuance of new certificates of need. It contained no language which would cause existing facilities providing cardiac catheterization services to be concerned that they might be disadvantaged in future certificate of need applications seeking expansion of their programs.

Within 21 days following publication of the Section 120.54(1) notice, Martin Memorial Hospital and Mease Health Care Center filed petitions for validity hearings under Section 120.54(4).[2] As a result of private negotiations between these petitioners and representatives of the appellant, an agreement was reached that certain changes would be made in the proposed rule. Upon the changes being made, the petitioners voluntarily dismissed their petitions.

On July 29, 1988, the appellant caused notice of the changes in the proposed rule to be published in the Florida Administrative Weekly. The notice indicated that the changes included expression of intent by the appellant "to allocate the projected growth in the number of cardiac catheterization admissions to new providers regardless of the ability of existing providers to absorb the projected need." Additionally, the notice advised that the policy of avoiding "the unnecessary duplication of services" would be replaced by a newly expressed policy of "foster[ing] competition among providers."

Within 21 days following the notice of the change in the proposed rule, the appellees, existing adult cardiac catheterization service providers, petitioned, pursuant to Section 120.54(4), for an administrative determination of invalidity of the proposed rule as changed. Appellees contended that the changes were an invalid exercise of delegated legislative authority, because they were in excess of the authority given to agencies by Section 120.54(13)(b), Florida Statutes, to change proposed rules. That subsection authorizes agencies to make changes during the course of the rulemaking process without the necessity of beginning the process anew, so long as the changes (1) are supported by the record of public hearings held on the rule, (2) are merely technical and do not affect the substance of the rule, (3) are in response to written material contained in the record and submitted to the agency within 21 days following the first publication of notice of the proposed rule, or (4) are in response to a proposed objection by the Administrative Procedures Committee. It was the appellees' contention that none of the statutorily enumerated bases for change had been present when appellant decided to change the proposed rule, and that, in order to lawfully adopt the proposed rule as changed, the appellant was obligated to begin a new rulemaking process.

Relying upon Section 120.54(4)(b), Florida Statutes, appellant contended that the appellees' petitions were untimely, because they had not been filed within 21 days following the first notice of proposed rulemaking. The hearing officer found, however, that the appellant's changes to the proposed rule had exceeded the authority given by Section 120.54(13)(b), and thus could not be made unless substantially affected *354 persons were given a point of entry to challenge the proposed rule as changed. Since the appellees had been deprived of a point of entry, but had filed their petitions within 21 days following their first notice of the improper changes, the hearing officer found their petitions to be timely under Section 120.54(4). He therefore determined that the rule, which had been filed by the appellant on July 18, 1988, and which had purportedly become effective on August 7, 1988, was an invalid exercise of delegated legislative authority.

The appellant first contends that persons situated as are appellees are without any remedy, other than a post-adoption proceeding under Section 120.56, Florida Statutes. It argues that a Section 120.54(4) petition is timely only when initiated within 21 days following the initial notice of proposed rulemaking, and, because the appellees' petitions were filed more than 21 days after the April 22, 1988 publication, their petitions were untimely.

The appellees agree that a petition for a 120.54(4) hearing must be filed within 21 days following the notice of rulemaking, but they argue that, where an agency wishes to change a proposed rule in a manner not permitted by 120.54(13), the agency must reinitiate the rulemaking process by publishing a new notice under Section 120.54(1). Their argument continues that, because a new notice, and consequently, a new point of entry for a 120.54(4) hearing is required under such circumstances, an affected person should not be denied the point of entry to which he is lawfully entitled, simply because the agency fails, improperly, to reinitiate the rulemaking process. The appellees contend that this result can be avoided only by allowing an affected person a point of entry to initiate proceedings under Section 120.54(4) following a rule change.

The language of Section 120.54 clearly evinces a legislative intent that agency rules are to be adopted only after the public has been notified of the content of proposed rules and reasonable opportunity for public comment has been given. Balino v. Dept. of Health & Rehabilitative Services, 362 So.2d 21 (Fla. 1st DCA 1978), appeal dismissed, 370 So.2d 462 (Fla. 1979).

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Bluebook (online)
578 So. 2d 351, 1991 WL 46822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dhrs-v-florida-medical-center-fladistctapp-1991.