Lakewood Nursing and Rehabilitation Center, LLC v. Department of Public Health

2019 IL 124019
CourtIllinois Supreme Court
DecidedDecember 15, 2020
Docket124019
StatusPublished
Cited by1 cases

This text of 2019 IL 124019 (Lakewood Nursing and Rehabilitation Center, LLC v. Department of Public Health) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakewood Nursing and Rehabilitation Center, LLC v. Department of Public Health, 2019 IL 124019 (Ill. 2020).

Opinion

Digitally signed by Reporter of Decisions Reason: I attest to the Illinois Official Reports accuracy and integrity of this document Date: 2020.12.15 11:16:24 -06'00' Supreme Court

Lakewood Nursing & Rehabilitation Center, LLC v. Department of Public Health, 2019 IL 124019

Caption in Supreme LAKEWOOD NURSING AND REHABILITATION CENTER, Court: LLC, Appellee, v. THE DEPARTMENT OF PUBLIC HEALTH et al., Appellants.

Docket No. 124019

Filed November 21, 2019

Decision Under Appeal from the Appellate Court for the Third District; heard in that Review court on appeal from the Circuit Court of Will County, the Hon. John C. Anderson, Judge, presiding.

Judgment Appellate court judgment reversed. Circuit court judgment affirmed.

Counsel on Kwame Raoul, Attorney General, of Springfield (Jane Elinor Notz, Appeal Solicitor General, and Laura Wunder, Assistant Attorney General, of Chicago, of counsel), for appellants.

Holly Turner, of Evanston, and Omar Fayez, of Huston, May & Fayez, LLC, of Chicago, for appellee.

Sarah Megan, Bernard H. Shapiro, and Dolores Wigman, of Prairie State Legal Services, Inc., of St. Charles, amicus curiae. Suzanne Courtheoux, Chad Baker, and Miriam Hallbauer, of LAF, Meghan P. Carter, of Legal Council for Health Justice, and Laura Miller and Cristina Headley, of Equip for Equality, all of Chicago, amici curiae.

Justices JUSTICE NEVILLE delivered the judgment of the court, with opinion. Chief Justice Burke and Justices Thomas, Kilbride, Garman, Karmeier, and Theis concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Lakewood Nursing and Rehabilitation Center, LLC (Lakewood), instituted administrative proceedings for the involuntary discharge of Helen Sauvageau, one of its residents. Sauvageau requested a hearing, and the Illinois Department of Public Health approved the discharge. Lakewood subsequently brought an action for administrative review against the Department of Public Health and its director (collectively, the Department), arguing that the hearing and decision were not timely under the Nursing Home Care Act (Act) (210 ILCS 45/1-101 et seq. (West 2012)). The circuit court of Will County determined that the Department did not violate the statutory time requirements. The appellate court reversed, holding that the Department lost jurisdiction over the involuntary discharge of Sauvageau because it had not held a hearing within 10 days of her hearing request. See 2018 IL App (3d) 170177. We allowed the Department’s petition for leave to appeal (Ill. S. Ct. R. 315(a) (eff. July 1, 2018)). For the reasons that follow, we reverse the judgment of the appellate court and affirm the judgment of the circuit court.

¶2 I. BACKGROUND ¶3 In July 2012, Helen Sauvageau became a Lakewood resident and paid for her residency through her pension and Social Security income without the assistance of government financial aid. Sauvageau stopped paying Lakewood in August 2013. ¶4 On October 28, 2013, Lakewood sent her a notice of involuntary transfer or discharge for failing to pay for her residency at Lakewood. On November 1, 2013, Sauvageau, acting through counsel, filed a request for hearing on the notice of involuntary transfer or discharge. The following day, she filed an application for Medicaid benefits. Her Medicaid application was denied on January 13, 2014, and on January 15, 2014, Lakewood’s attorney informed the Department of the denial and requested that a hearing on the notice of intent to discharge be scheduled. ¶5 On February 10, 2014, a prehearing conference was held before an administrative law judge (ALJ). At that time, Lakewood presented a motion to dismiss contending that, under the Act, the Department could not conduct a hearing more than 10 days from the date of a resident’s request. Ten days later, the ALJ denied Lakewood’s motion based on the

-2- determination that the Department had not lost jurisdiction over the involuntary transfer proceeding. ¶6 The hearing was conducted on March 24, 2014, and Sauvageau’s counsel acknowledged that she owed Lakewood money for her stay. In April 2014, the ALJ issued a report and recommendation in which he recommended that the notice of involuntary discharge be approved 30 days subsequent to the receipt of the final ruling. On May 6, 2014, the chief ALJ issued the Department’s final administrative decision, adopting the ALJ’s recommendation and approving Lakewood’s notice of involuntary discharge within 30 days. Sauvageau left the facility on May 29, 2014. ¶7 Lakewood thereafter filed a complaint for administrative review of the Department’s final decision. 1 Lakewood’s complaint asserted, inter alia, that the Department lacked authority to exceed the statutory 10-day hearing time and 14-day decision time for involuntary transfer or discharge proceedings. ¶8 The circuit court dismissed Lakewood’s complaint as moot because Sauvageau had already left the facility. Lakewood appealed, and the appellate court reversed and remanded based on its conclusion that the issues should be considered under the public-interest exception to the mootness doctrine. 2015 IL App (3d) 140899. ¶9 On remand, Lakewood argued that section 3-411 of the Act, which requires that the Department conduct a hearing “not later than 10 days” after a resident’s request and render a decision within 14 days after the request, is mandatory. 210 ILCS 45/3-411 (West 2012). Lakewood further claimed that section 3-413 did not give the Department authority to approve the notice 30 days after its final ruling. Id. § 3-413. ¶ 10 The circuit court determined that section 3-411’s time requirements are directory because section 3-411 does not include negative language or any consequence for noncompliance that would overcome the presumption that procedural commands are generally interpreted as directory. The circuit court observed that the Act is intended to protect nursing home residents, whose interests are better protected by a directory interpretation of section 3-411. The circuit court also determined that section 3-413 did not prevent the Department from approving a notice of involuntary discharge 30 days after its final decision. Lakewood appealed, arguing that the circuit court’s interpretation of sections 3-411 and 3-413 was erroneous. ¶ 11 The appellate court reversed, holding that the Department lost jurisdiction over Sauvageau’s involuntary discharge proceeding because it did not conduct a hearing within 10 days. 2018 IL App 3d 170177, ¶ 24. The court concluded that the phrase “ ‘not later than 10 days’ in section 3-411 constitutes negative language” that requires a mandatory construction. Id. ¶ 23. The appellate court also determined that section 3-413 did not give the Department authority to approve the notice of transfer and discharge 30 days after receipt of the final ruling. Id. ¶ 27. ¶ 12 The Department appeals to this court. We also allowed Prairie State Legal Services, LAF, Legal Council for Health Justice, and Equip for Equality to file briefs as amici curiae in support

1 Lakewood’s complaint named then-director LaMar Hasbrouck as a defendant. By operation of law, Hasbrouck was later replaced by Nirav Shah, and Shah has since been replaced by the current director, Ngozi Ezike. See 735 ILCS 5/2-1008(d) (West 2018).

-3- of the Department’s position. Ill. S. Ct. R. 345 (eff. Sept. 20, 2010).

¶ 13 II. ANALYSIS ¶ 14 The Department challenges the appellate court’s holding that the 10-day hearing period set forth in section 3-411 is mandatory and that noncompliance with that time period deprives the Department of jurisdiction to conduct a hearing on a notice of involuntary transfer or discharge.

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2019 IL 124019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakewood-nursing-and-rehabilitation-center-llc-v-department-of-public-ill-2020.