Lee Quality Home Care LLC v. Dep't of Health Servs.

2019 WI App 8, 926 N.W.2d 501, 385 Wis. 2d 846
CourtCourt of Appeals of Wisconsin
DecidedJanuary 31, 2019
DocketAppeal No. 2017AP1216
StatusPublished

This text of 2019 WI App 8 (Lee Quality Home Care LLC v. Dep't of Health Servs.) 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
Lee Quality Home Care LLC v. Dep't of Health Servs., 2019 WI App 8, 926 N.W.2d 501, 385 Wis. 2d 846 (Wis. Ct. App. 2019).

Opinion

FITZPATRICK, J.

¶1 This appeal concerns the efforts of the Wisconsin Department of Health Services (DHS) to recover payments DHS made to Lee Quality Home Care LLC, a provider of personal care services to Medicaid recipients. Lee Quality challenges DHS's determinations that: Lee Quality's personal care workers were not trained or supervised as required by DHS administrative rules; and DHS can recover payments made to Lee Quality for the services provided by those workers.

¶2 We conclude that there was substantial evidence in the record to support DHS's finding that Lee Quality personal care workers did not have the requisite training. We also conclude that DHS has the authority to recover payments made to Lee Quality for personal care services provided by those workers. As to the supervision of Lee Quality personal care workers, we conclude that DHS erred in finding that Lee Quality made a material concession about the evidence, and that DHS did not consider material evidence regarding that issue. As we explain, we direct the circuit court to remand this matter to DHS for a determination of the supervision issue in light of relevant evidence in the record. Therefore, we affirm in part, reverse in part and direct the circuit court to remand to DHS for further proceedings consistent with this opinion.

BACKGROUND

¶3 There is no dispute regarding the following facts.

¶4 "Medicaid is a cooperative federal-state program through which the Federal Government provides financial assistance to States so that they may furnish medical care to needy individuals." Wilder v. Virginia Hosp. Ass'n , 496 U.S. 498, 502 (1990). Wisconsin's Medicaid program is administered by DHS. See State v. Abbott Labs. , 2012 WI 62, ¶3, 341 Wis. 2d 510, 816 N.W.2d 145. Pertinent to this case, DHS's administration of Medicaid in Wisconsin includes reimbursing providers for services rendered to program participants, establishing criteria for Medicaid participation and reimbursement of providers, and enforcing compliance with those requirements by providers. See WIS. STAT . § 49.45(2) (2015-16)1 ; WIS. ADMIN. CODE § DHS 107.01(1) (Nov. 2018)2 ; and Newcap, Inc. v. DHS , 2018 WI App 40, ¶4, 383 Wis. 2d 515, 916 N.W.2d 173.

¶5 Lee Quality is a provider of personal care services through its personal care workers and receives Medicaid reimbursement payments for much of this care. See, e.g. , WIS. STAT . § 49.45(42)(d) 3.e. Under WIS. ADMIN. CODE § DHS 107.112(1)(a), "[p]ersonal care services are medically oriented activities related to assisting a recipient with activities of daily living necessary to maintain the recipient in his or her place of residence in the community." Sec. DHS 107.112(1)(a). Examples of "personal care services" are listed in § DHS 107.112(1)(b)1.-13. and include assistance with activities such as bathing, getting in and out of bed, dressing and undressing, meal preparation, food purchasing and meal serving, among other activities. Secs. DHS 107.112(1)(b)1.-13., (1)(a).

¶6 Pursuant to WIS. STAT . §§ 49.45(3)(g)1. and 49.46(2)(b) 6.j., and 42 U.S.C. § 1396a(a)(42) (2012),3 DHS conducted an audit of services provided by Lee Quality. As a result of that audit, DHS issued to Lee Quality a Notice of Intent to Recover approximately $99,000.00 of allegedly improper Medicaid reimbursement payments made to Lee Quality during the period covered by the audit.

¶7 DHS asserts that the payments should not have been made because of two reasons: (a) a lack of training of Lee Quality's personal care workers; or (b) a lack of timely supervisory visits with Lee Quality's personal care workers by a registered nurse. Both the training and supervision requirements of personal care workers are detailed in DHS administrative rules, and we consider the specifics of these rules in the Discussion section, below.

¶8 Lee Quality objected to DHS's request to recover the approximately $99,000.00 amount, and a contested case hearing was held before an administrative law judge (ALJ) of the Division of Hearings and Appeals. After the hearing, the ALJ issued a Proposed Decision agreeing with DHS's position, including findings that Lee Quality services were not reimbursable by Medicaid either because of a lack of the requisite training of Lee Quality's personal care workers or a lack of required supervisory visits by a registered nurse with the personal care workers. The ALJ also determined that DHS has the authority under applicable Wisconsin law to recover the payments made to Lee Quality for the non-reimbursable services.

¶9 DHS adopted the ALJ's Proposed Decision as its own final decision pursuant to WIS. STAT . § 227.46(2). Lee Quality requested a rehearing which DHS denied. Lee Quality filed a WIS. STAT. ch. 227 petition for judicial review in the La Crosse County Circuit Court. The circuit court affirmed DHS's final decision. Lee Quality now appeals.

¶10 Other pertinent facts are mentioned in the discussion that follows.

DISCUSSION

¶11 First, we discuss DHS's findings about whether Lee Quality personal care workers received the training required by DHS administrative rules, and we affirm those findings of DHS. Second, we conclude that DHS has the authority to recover Medicaid reimbursement payments made to Lee Quality for services performed by personal care workers who did not receive the required training. Finally, we discuss DHS's finding that Lee Quality personal care workers did not have the supervision by a registered nurse required by DHS administrative rules. DHS found that Lee Quality made a concession about this issue, but we conclude that the record does not support that finding. We also conclude that DHS did not consider material evidence in the record about the supervision of Lee Quality personal care workers by a registered nurse. Because those errors may make a difference to the result, we reverse DHS's findings on the supervision issue and direct the circuit court to remand to the agency for further proceedings consistent with this opinion.

I. Standard of Review, and Interpretation of Statutes and Administrative Rules.

¶12 In an appeal of a circuit court order reviewing an agency decision, we review the decision of the agency, not that of the circuit court. Hilton ex rel. Pages Homeowners' Ass'n v. DNR , 2006 WI 84

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Bluebook (online)
2019 WI App 8, 926 N.W.2d 501, 385 Wis. 2d 846, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-quality-home-care-llc-v-dept-of-health-servs-wisctapp-2019.