In Re Wedgewood Health Care Realty, L.L.C.

892 N.E.2d 960, 176 Ohio App. 3d 554, 2008 Ohio 2950
CourtOhio Court of Appeals
DecidedJune 17, 2008
DocketNo. 07AP-800.
StatusPublished
Cited by3 cases

This text of 892 N.E.2d 960 (In Re Wedgewood Health Care Realty, L.L.C.) 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 Wedgewood Health Care Realty, L.L.C., 892 N.E.2d 960, 176 Ohio App. 3d 554, 2008 Ohio 2950 (Ohio Ct. App. 2008).

Opinion

Bryant, Judge.

{¶ 1} Appellant, Wedgewood Health Care Realty, L.L.C. (“Wedgewood”), appeals from the order of the director of the Ohio Department of Health (“ODH”) denying Wedgewood’s May 30, 2006 application for a certificate of need (“CON”) seeking to relocate 50 long-term-care beds from Atwood Manor Care Center *557 (“Atwood Manor”) to Gabon Nursing and Rehabilitation Center (“GNRC”). Wedgewood assigns a single error:

The adjudication order of the Ohio Department of Health is not supported by reliable, probative, and substantial evidence and is not in accordance with law.

Because reliable, probative, and substantial evidence supports the director’s decision, and it is in accordance with law, we affirm.

I. The First CON Application

{¶ 2} On January 19, 2005, Wedgewood filed an application for a CON to relocate 50 long-term care beds from Atwood Manor, which ceased operations on or about January 18, 2005, to GNRC, a new long-term care facility. Both facilities are located in Gabon, Ohio, in Crawford County. The director of ODH denied the CON application, finding that it was not in accordance with the rules adopted under R.C. 3702.57 because Wedgewood had failed to provide sufficient information regarding its historical performance and that of related parties in providing cost-effective health care services, as required under Ohio Adm.Code 3701-12-20(J)(5). The director also denied the application because he found that Wedgewood had failed to address any approved CON applications filed by related parties, as required under Ohio Adm.Code 3701-12-20(R). Upon Wedgewood’s appeal, this court affirmed the director’s decision. See In re Wedgewood Realty, L.L.C., Franklin App. No. 06AP-273, 2006-Ohio-6734, 2006 WL 3718343, appeal not allowed, 113 Ohio St.3d 1491, 2007-Ohio-1986, 865 N.E.2d 914.

II. The Second CON Application

{¶ 3} While the foregoing appeal was pending before this court, Wedgewood filed a second application for a CON on May 30, 2006, again seeking ODH’s approval to relocate the same 50 long-term care beds from Atwood to GNRC. The May 30, 2006 CON application and the ODH proceedings relating to that application are the subject of this appeal.

{¶ 4} After ODH declared the application complete, written comments and objections by or on behalf of Tonya Sheets and her union, SEIU/District 1199 (collectively, “the objectors”), were submitted to ODH opposing Wedgewood’s proposal to relocate the 50 long-term care beds. “SEIU/District 1199” is the Services Employees International Union District 1199 (“SEIU”), a union composed primarily of health-care and social-services workers in both the public and private sectors; Sheets is a member and employee of the union. The written objections asserted that Wedgewood’s proposal does not meet all of the criteria Ohio Adm.Code 3701-12-23.2 prescribes regarding the relocation of long-term-care beds because Atwood Manor is not an “existing health care facility” as defined in R.C. 3702.51. Consequently, the objectors argued, the May 30, 2006 application that Wedgewood filed must be denied as contrary to law.

*558 {¶ 5} In accordance with the objectors’ request under R.C. 3702.52, the ODH director appointed a hearing examiner, who conducted a three-day adjudication hearing on Wedgewood’s proposal to relocate the long-term-care beds. Following the hearing, the hearing examiner issued a report and recommendation in which he advised the ODH director to deny Wedgewood’s CON application. The hearing examiner based the recommendation on his conclusion that “granting the certificate of need would not be in accordance with Ohio Revised Code sections 3702.51 to 3702.62 or rules adopted under Ohio Revised Code section 3702.57.” More specifically, the hearing examiner found that “the nursing home beds proposed for transfer under the May 30, 2006 certificate of need application are not coming from an ‘existing health care facility’ as defined by Ohio Revised Code sections 3702.51(L)(1) and (2), [and therefore] the proposed transfer is not in accordance with Ohio Administrative Code rule 3701-12-232.”

{¶ 6} Both sides filed timely objections to the report and recommendation. By order mailed on September 6, 2007, the ODH director accepted the hearing examiner’s recommendation and denied Wedgewood’s May 30, 2006 application for a CON.

{¶ 7} Pursuant to R.C. 3702.60(A), Wedgewood now appeals the ODH director’s decision. R.C. 3702.60(F)(3) provides that in an appeal to this court from a decision granting or denying a CON application, this court must “affirm the director’s order if it finds, upon consideration of the entire record and any additional evidence admitted * * * 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.” Analysis of whether the evidence supports the director’s decision is essentially a question of the absence or presence of the requisite quantum of evidence. In re Application of Manor Care of Parma, Franklin App. No. 05AP-398, 2005-Ohio-5703, 2005 WL 2787644, at ¶ 9. Although this court may engage in a limited weighing of the evidence, it may not substitute its judgment for that of ODH as to the credibility of witnesses or weight to be given the testimony. Id. Rather, this court must give due deference to the administrative resolution of evidentiary conflicts. In re Christian Care Home of Cincinnati, Inc. (1991), 74 Ohio App.3d 453, 457, 599 N.E.2d 342, citing Univ. of Cincinnati v. Conrad (1980), 63 Ohio St.2d 108, 111, 17 O.O.3d 65, 407 N.E.2d 1265.

III. Assignment of Error

A. Objector Status

{¶ 8} Wedgewood first contends that neither Sheets nor SEIU had a right to object to the CON application at issue and to be made a party to the ODH proceedings.

*559 {¶ 9} R.C. 3702.52(C)(1) provides, “If the project proposed in a certificate of need application meets all of the applicable certificate of need criteria for approval” under R.C. 3702.51 to 3702.62 and the rules adopted under those sections, “the director shall grant a certificate of need for the entire project that is the subject of the application immediately after * * * the following conditions are met: * * * (b) The director does not receive any written objections to the application from any affected person by the thirtieth day after the director mails the notice of completeness.”

{¶ 10} The statute further provides, “If the director receives written objections to an application from any affected person by the thirtieth day after mailing the notice of completeness,” an adjudication hearing shall be conducted concerning the application, and the affected persons that filed the objections are parties to the hearing.

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892 N.E.2d 960, 176 Ohio App. 3d 554, 2008 Ohio 2950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-wedgewood-health-care-realty-llc-ohioctapp-2008.