Foley Hospital Corp. v. Gulf Health Hospitals, Inc.

157 So. 3d 925, 2014 WL 1646349
CourtCourt of Civil Appeals of Alabama
DecidedApril 25, 2014
Docket2120871 and 2120943
StatusPublished
Cited by1 cases

This text of 157 So. 3d 925 (Foley Hospital Corp. v. Gulf Health Hospitals, Inc.) 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
Foley Hospital Corp. v. Gulf Health Hospitals, Inc., 157 So. 3d 925, 2014 WL 1646349 (Ala. Ct. App. 2014).

Opinion

MOORE, Judge.

In appeal no. 2120871, Foley Hospital Corporation d/b/a South Baldwin Regional Medical Center (“South Baldwin”) appeals from a judgment of the Montgomery Circuit Court (“the circuit court”) reversing a decision of the Certificate of Need Review Board (“CONRB”) of the Alabama State Health Planning and Development Agency (“SHPDA”) to grant a Certificate of Need (“CON”) to South Baldwin over the objection of Gulf Health Hospitals, Inc., d/b/a Thomas Hospital (“Thomas Hospital”). In appeal no. 2120943, SHPDA and Alva Lambert, the executive director of SHPDA, also appeal from that same judgment. The appeals have been consolidated by this court ex mero motu.

Procedural History

On July 5, 2011, South Baldwin filed with SHPDA a certificate-of-need application for expansion of “its existing cardiac cath services by seeking approval to perform cardiac cath procedures in a second, existing non-cardiac cath procedure room.”1 South Baldwin asserted that “[t]he second cardiac cath lab is needed as a result of [South Baldwin’s] ‘high utilization’ of its existing one (1) cardiac cath lab and the large and growing volume of procedures performed in the cardiac cath lab.” South Baldwin attached to its application letters of support for the expansion written by several Baldwin County physicians. On August 23, 2011, Thomas Hospital filed with SHPDA its notice of intervention and opposition to South Baldwin’s CON application and its request for a contested case hearing.

On April 16, 2012, the administrative law judge assigned to review the application issued her recommended findings of fact and conclusions of law; the administrative law judge recommended that SHPDA issue the CON. On April 24, 2012, Thomas Hospital filed its exceptions to the recommended findings of fact and conclusions of law entered by the administrative law judge. On May 31, 2012, the CONRB entered an order granting the CON and stating:

“FACTS:
“1. [South Baldwin] seeks an expansion of the cardiac catheterization services it provides in Baldwin County, Alabama. The hospital currently has one cardiac catheteri-zation room and proposes to expand into an existing vascular procedure room, which is used to provide non-cardiac catheterization procedures. Upon approval, this project would result in the establishment of two [928]*928cardiac catheterization rooms at South Baldwin....
“2. Total costs associated with the project are projected to be $260,000.00, which includes the cost of equipment ($60,000.00) and first year annual operating costs ($200,-000.00).
“3. This project will be funded with $260,000.00 cash on hand.
“4. The primary service area for this project is Baldwin County, Alabama.
“5. The 2004 — 2007 Alabama State Health Plan addresses Cardiac Catheterization Services in Ala. Admin. Code r. 410-2-3-.03 (2011). Planning Policy 3 — Expansion of Service — states that expansion of an existing cardiac catheterization service shall only be approved if an applicant has performed over 1,000 equivalent procedures per unit (80% capacity) for each of the past two years. The facility may then apply for expansion of catheterization services regardless of the utilization of other facilities in the county. “According to the applicant, South Baldwin ... performed procedures in its cardiac catheterization unit equating to 137% of its equivalent procedure capacity in 2009 and 144.7% of its equivalent procedure capacity in 2010. The applicant further states that between 2006 and 2010, total procedure levels have risen by 25.5%.
“6. Eight (8) letters were received in support of the application. A Notice of Intervention and Opposition and Contested Case Hearing Request was filed by ... Thomas Hospital on August 23, 2011. Following the Contested Case Hearing, the assigned Administrative Law Judge issued Recommended Findings of Fact and Conclusions of Law (the ‘Recommended Order’) on April 16, 2012, recommending a grant of [South Baldwin’s] application. Thomas Hospital timely filed exceptions to the [Administrative Law Judge’s] Recommended Order on April 24, 2012, and both parties were given an opportunity to address the [CONRB] at the public hearing held to consider the application on May 16, 2012.
“7. Baldwin County had an estimated population of 184,395 in the year 2010. By 2012, the Center for Business and Economic Research (‘CBER’) at the University of Alabama estimates that Baldwin County’s population will be 193,110, for an overall increase of 4.8%.
“8. Upon consideration of the totality of the evidence presented, the [CONRB] concludes that the proposal is financially feasible. Further, the [CONRB] concludes that the applicant is an ‘appropriate applicant,’ as defined by the applicable regulations.
“9. The [CONRB] concludes that the applicant has demonstrated a substantially unmet community need for the proposal.
“Based on the foregoing factual findings and representations, the evidence of record, and pursuant to Ala.Code § 22-21-266 (1975 as amended), the [CONRB] finds the following:
“(1) that the application is consistent with, the current State Health Plan;
“(2) that there are no less costly, more efficient, or more appropriate alternatives to the services available and that the development of such [929]*929alternatives has been studied and found not practicable;
“(3) that similar services to those proposed are being used in an appropriate and efficient manner;
“(4) that in the case of new construction, alternatives have been considered and implemented to the extent possible; and that patients will experience serious problems in obtaining care of the type proposed in the absence of the proposed expansion of cardiac catheterization.
“(5) that patients will experience serious problems in obtaining care of the type proposed in the absence of the proposed expansion of cardiac catheterization services.
“Accordingly, based on the foregoing, separately and severally, and upon the totality of the evidence presented, by vote of the [CONRB] on May 16, 2012, Project Number AL 2011-033 is hereby APPROVED.”

On, June 22, 2012, Thomas Hospital filed its notice of appeal with SHPDA. On July 20, 2012, Thomas Hospital also filed a petition for judicial review in the circuit court.

On August 21, 2012, SHPDA and Alva Lambert, in only his official capacity as the executive director of SHPDA, filed an answer to the petition for judicial review. On August 23, 2012, South Baldwin answered the petition for judicial review.

On June 25, 2013, the circuit court entered a judgment stating, in pertinent part:

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Bluebook (online)
157 So. 3d 925, 2014 WL 1646349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foley-hospital-corp-v-gulf-health-hospitals-inc-alacivapp-2014.