Kristy Stewart v. Wisconsin Department of Health Services

CourtCourt of Appeals of Wisconsin
DecidedJune 18, 2026
Docket2025AP000805
StatusPublished

This text of Kristy Stewart v. Wisconsin Department of Health Services (Kristy Stewart v. Wisconsin Department of Health Services) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kristy Stewart v. Wisconsin Department of Health Services, (Wis. Ct. App. 2026).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. June 18, 2026 A party may file with the Supreme Court a Samuel A. Christensen petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2025AP805 Cir. Ct. No. 2024CV288

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT IV

KRISTY STEWART,

PETITIONER-APPELLANT,

V.

WISCONSIN DEPARTMENT OF HEALTH SERVICES,

RESPONDENT-RESPONDENT.

APPEAL from an order of the circuit court for Sauk County: BLAKE J. DUREN, Judge. Affirmed.

Before Graham, P.J., Blanchard, and Taylor, JJ.

¶1 BLANCHARD, J. Kristy Stewart pursues an administrative appeal challenging final billing notices issued to her by the Sauk County Department of Human Services (the county). The county’s notices direct Stewart to pay debts for room and board costs generated in a county-administered program. After Stewart No. 2025AP805

filed an administrative appeal with the Wisconsin Department of Health Services (the Department) challenging the county’s notices, she received an adverse ruling on the merits from an administrative law judge and she objected to that ruling. The Department dismissed Stewart’s objection without reaching the merits, based on a decision that she is not entitled to an administrative appeal. The issue in this appeal is whether the Department’s decision was correct.

¶2 Stewart invokes provisions in WIS. STAT. § 46.10 (2023-24) to argue that she has a right to appeal to the Department.1 Most prominently, she relies on § 46.10(4)(a), which grants to persons aggrieved by orders to compel payments of debts governed by § 46.10 the right to a contested case hearing with the Department under WIS. STAT. ch. 227. The Department’s position to the contrary is based on the fact that the Department itself has not issued to Stewart an order to compel payment of the debt, and also on the fact that all she received were final notices directing her to make payments. See § 46.10(4)(a) (creating a right to a contested case hearing for a person who is issued “an order to compel payment” by the “[D]epartment”).

¶3 We affirm the Department’s decision that Stewart cannot pursue administrative review by the Department under WIS. STAT. § 46.10, based on our conclusion that Stewart fails to identify “an order to compel payment” issued to her by either the county or the Department, which is necessary to trigger her right to administrative review. Given the absence of an order to compel payment, we

1 All references to the Wisconsin Statutes are to the 2023-24 version unless otherwise noted.

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affirm the circuit court’s decision to affirm the Department’s dismissal of Stewart’s appeal.

¶4 In order to provide further guidance in this area, however, we separately explain why we reject the Department’s position that it must deny an administrative appeal under WIS. STAT. § 46.10(4)(a) that is pursued by a person who, unlike Stewart here, has received an order to compel payment from the county department. We conclude that such an order from the county would have been the functional equivalent of an order from the Department. This conclusion is based on multiple features of § 46.10, including that the Department is required under § 46.10(16) to delegate to county departments, such as the county here, the Department’s relevant responsibilities for the collection of debts for patient fees for services under § 46.10. Therefore, the administrative appeal path would have been open to Stewart, had the county issued to her an order compelling payment of the alleged liabilities at issue.

BACKGROUND

¶5 Kristy Stewart is a Sauk County resident with a disabling mental illness. Before January 2023, Stewart was enrolled in a county-administered “comprehensive community services program,” which covered her room and board costs at a privately owned and operated community-based residential facility. See WIS. ADMIN. CODE § DHS 36.03(4) (defining such a program in pertinent part as “a county-wide … community-based psychosocial rehabilitation program that is operated by a county department … to provide or arrange for the provision of psychosocial rehabilitation services”).2 That month, she was 2 All references to the WIS. ADMIN. CODE are to the version adopted April 2026.

3 No. 2025AP805

transitioned to a different county program, a community support program. See WIS. ADMIN. CODE § DHS 63.01(1) (defining the purpose of such programs as being “to provide effective and easily accessible treatment, rehabilitation[,] and support services in the community where persons with chronic mental illness live and work”). Counties may establish such community support programs under WIS. STAT. § 51.421, which may qualify for appropriate reimbursements through the Wisconsin Medical Assistance program. See § DHS 63.01(2). The county took the position that, under the community support program, Stewart was obligated to contribute to her room and board.

¶6 The county sent Stewart multiple bills, including one that included the phrase “FINAL NOTICE,” directing her to pay $1,390.80. It stated in part, “20% COLLECTION FEE WILL BE CHARGED TO PAST DUE BALANCES SENT TO A COLLECTION AGENCY” and also stated, “PROMPT PAYMENT WILL AVOID USE OF FURTHER COLLECTION ACTION.”

¶7 Through counsel, Stewart filed an appeal with the state Division of Hearings and Appeals in September 2023, requesting a hearing before an administrative law judge for review of the basis for the county’s notices.3

3 In initiating the administrative appeal to the Department, Stewart asserted that she sought a “fair hearing,” but during the administrative hearing, Stewart’s counsel clarified that Stewart sought a contested case hearing under WIS. STAT. ch. 227, and that is how both the ALJ and the Department interpreted her appeal to the Department. See WIS. ADMIN. CODE § HA 3.02(8) (defining a “fair hearing” to be “a de novo proceeding before an impartial administrative law judge in which the petitioner or the petitioner’s representative presents the reasons why the agency or department action or inaction in the petitioner’s case should be corrected”). Neither side suggests on appeal that this initial mischaracterization has any effect on the issues here.

4 No. 2025AP805

¶8 We discuss below the parties’ theories about Stewart’s ability to pursue a contested case hearing and the pertinent statutory provisions. It is sufficient as background to note that Stewart bases her claim of a right to an administrative appeal primarily on WIS. STAT. § 46.10(4)(a) and (16). Under § 46.10(4)(a), the Department “may issue an order to compel payment of” a liability arising under § 46.10(2), which defines liabilities that include Stewart’s alleged debt. Section 46.10(4)(a) also states that a person who is “aggrieved by” such an order “may appeal the order as a contested case under [WIS. STAT.] ch. 227.” Under § 46.10(16), the Department must delegate to county departments the Department’s responsibilities to collect patient fees for services, so long as the county departments meet Department standards.

¶9 An administrative law judge held a hearing on the merits of Stewart’s appeal in February 2024, which included testimony from a county manager for business and administrative services.

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Bluebook (online)
Kristy Stewart v. Wisconsin Department of Health Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kristy-stewart-v-wisconsin-department-of-health-services-wisctapp-2026.