In Re Deaconess Hospital

613 N.E.2d 1049, 83 Ohio App. 3d 1, 1992 Ohio App. LEXIS 5087
CourtOhio Court of Appeals
DecidedSeptember 29, 1992
DocketNos. 91AP-1386, 91AP-1387, 91AP-1388, 91AP-1389, 91AP-1392, 91AP-1393, 91AP-1394 and 91AP-1395.
StatusPublished
Cited by1 cases

This text of 613 N.E.2d 1049 (In Re Deaconess Hospital) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Deaconess Hospital, 613 N.E.2d 1049, 83 Ohio App. 3d 1, 1992 Ohio App. LEXIS 5087 (Ohio Ct. App. 1992).

Opinion

Deshler, Judge.

Appellants, Deaconess Hospital of Cincinnati (“Deaconess”), Providence Hospital (“Providence”), St. Francis-St. George Hospital (“St. Francis”), The Christ Hospital (“TCH”) (collectively “appellants”) and the Ohio Department of Health (“ODH”), appeal from orders of the Certifícate of Need Review Board (“board”), reversing the decisions of ODH to grant separate certificates of need to Deaconess, Providence, St. Francis and TCH.

In April 1990, Deaconess, Providence, St. Francis and TCH all filed applications with ODH, each seeking a certificate of need (“CON”) to recategorize twenty medical/surgical beds to hospital skilled nursing beds pursuant to R.C. 3702.51(R)(7)(d) and Ohio Adm.Code 3701-12-233. The four applications were comparatively reviewed by ODH. By letters dated August 27, 1990, the director of ODH granted each of the applicants a CON to recategorize twenty medical/surgical beds to twenty hospital skilled nursing beds.

*5 On September 26, 1990, Susan Moore, appealed from the decisions of ODH granting CONs to the four applicant hospitals. The cases were consolidated into a single evidentiary hearing which commenced on January 22, 1991, and continued intermittently until its conclusion on May 16, 1991.

On September 20, 1991, the hearing examiner submitted his report and recommendation to the board. The hearing examiner recommended that the board reverse the decisions of the director of ODH and that the applications of the four hospitals for the requested CONs be denied.

Appellants filed objections to the hearing examiner’s report and recommendation. By order dated' October 31, 1991, the board adopted the report and recommendation of the hearing examiner and reversed the decisions of the director of ODH granting CONs to the four applicant hospitals.

Appellants and ODH timely appealed to this court from the order of the board. Susan Moore (“Moore”) 1 also filed notices of appeal from the order of the board. On January 21, 1992, the Ohio Hospital Association (“OHA”) filed a motion for an order granting leave to file an amicus curiae brief and to participate in oral argument in this matter. By journal entry filed January 23, 1992, this court granted the motion of OHA for leave to file a brief, amicus curiae, but denied the motion for leave to participate in oral argument.

On appeal, appellants set forth the following assignments of error 2 for review:

“A. The board committed error in exclusively relying upon the hearing examiner’s bed need formula calculations in reversing the decisions of ODH.

“B. The hearing examiner concocted an irrational and unreasonable bed need formula in assessing the need for appellant’s projects.

“C. The bed need formula relied upon by the board is illegal as an unlawfully promulgated rule.

“D. Ohio Adm.Code 3701-12-233, as interpreted by the board, is inconsistent with R.C. 3702.51(R)(7)(d) and is invalid.

“E. The board’s decision denied the appellants their right to a de novo hearing.”

*6 The brief of OHA sets forth two arguments in support of the position of appellants. The arguments of OHA rephrase the assignments of error of appellants in the following manner:

“The Certificate of Need Review Board erred as a matter of law in its application of Rule 3701-12-233[.]

“The Certificate of Need Review Board erred as a matter of law in determining need pursuant to an unpromulgated bed need formula[.]”

Moore raises two assignments of error on appeal:

Assignment of Error No. 1

“The failure of the Public Health Council to timely adopt regulations voids the authority of the Department of Health to grant certificates of need pursuant to O.A.C. Rule 3701-12-233.”

Assignment of Error No. 2

“The Certificate of Need Review Board and the hearing examiner erred in not reopening the record to allow the introduction into evidence of the long term care discharge survey interim report issued by the Greater Cincinnati Hospital Council.”

The standard of review for this court in examining an appeal from the board is set forth in R.C. 3702.60(E)(3), which states:

“The court shall affirm the Board’s order if it finds, upon consideration of the entire record and any additional evidence admitted under division (E)(2) of this section, that the order is supported by reliable, probative, and substantial evidence and is in accordance with law. In the absence of such a finding, it shall reverse, vacate, or modify the order.”

In August 1989, the Ohio General Assembly, through the enactment of R.C. 3702.51(R)(7)(d), authorized the recategorization of hospital beds to skilled nursing beds. The reorganization of beds, to be carried out under rules adopted by the public health council, is subject to certain requirements under the statute.

More specifically, a hospital seeking a recategorization of beds shall not apply for a CON for more than twenty skilled nursing beds. R.C. 3702.51(R)(7)(d)(i). Beds recategorized pursuant to the statute shall not be covered by a provider agreement under Title XIX of the Social Security Act. R.C. 3702.51(R)(7)(d)(ii). The recategorized beds are not to be reviewed under or counted in any formula developed under public health council rules for the purpose of determining the number of long-term care beds that may be needed in the state of Ohio. R.C. 3702.5l(R)(7)(d)(iii). A hospital seeking recategorization of beds pursuant to this statute must certify and demonstrate in its application for a CON that the beds will be dedicated to patients with a length of stay of no more than .thirty days; the patient, however, may stay in the bed for more than thirty days if the hospital *7 can demonstrate that it made a good faith effort to place a patient in an accessible skilled nursing facility, acceptable to the patient, but was unable to do so within the thirty-day period. R.C. 3702.51 (R)(7)(d)(iv).

No beds shall be approved under this statute unless the hospital can satisfactorily demonstrate in its application for a CON that it is “routinely unable to place the patients planned for the beds in accessible skilled nursing facilities.” R.C. 3702.51(R)(7)(d)(v). In developing rules to implement this statute, the public health council is required to give special attention to the required documentation of the need for these units, including the efforts of the applicant hospital to place patients in skilled nursing facilities. Id. The rules promulgated by the public health council shall also give special attention to the appropriate size of these units given the historical pattern of the applicant hospital’s difficulty in placing skilled nursing patients. Id. Every hospital seeking recategorization of beds is required to participate in a nursing home placement clearinghouse. R.C. 3702.-51(R)(7)(d)(vi).

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Bluebook (online)
613 N.E.2d 1049, 83 Ohio App. 3d 1, 1992 Ohio App. LEXIS 5087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-deaconess-hospital-ohioctapp-1992.