Medical Center, Inc. v. State Health Planning Agency

464 S.E.2d 925, 219 Ga. App. 334, 96 Fulton County D. Rep. 86, 1995 Ga. App. LEXIS 1039
CourtCourt of Appeals of Georgia
DecidedDecember 5, 1995
DocketA95A1086; A95A1087
StatusPublished
Cited by1 cases

This text of 464 S.E.2d 925 (Medical Center, Inc. v. State Health Planning Agency) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medical Center, Inc. v. State Health Planning Agency, 464 S.E.2d 925, 219 Ga. App. 334, 96 Fulton County D. Rep. 86, 1995 Ga. App. LEXIS 1039 (Ga. Ct. App. 1995).

Opinion

Pope, Presiding Judge.

The Medical Center, Inc. (“TMC”) provides obstetric and neonatal services to residents of Columbus, Georgia and the surrounding area. In January 1991, the State Health Planning Agency (“SHPA”) approved TMC’s application for a certificate of need to renovate certain areas of its hospital, including its obstetric unit. One month later, SHPA denied two applications for new perinatal services, which were filed by Columbus Doctors Hospital, Inc. (“Doctors”) and St. Francis Hospital, Inc. (“St. Francis”).

Doctors and St. Francis appealed the denial of their applications and the approval of TMC’s application to the State Health Planning Review Board (“Board”). On February 20, 1992, after conducting a consolidated hearing on all three applications, a three-member panel of the Board affirmed SHPA’s approval of TMC’s application and the [335]*335denial of St. Francis’ application. The panel, however, reversed SHPA’s denial of Doctors’ application.

In March 1992, TMC and St. Francis appealed the Board’s decision to the Superior Court of Muscogee County. The superior court ruled that SHPA had erred in failing to conduct a consolidated review of all three applications, and that the error had not been cured by the Board’s consolidated review of the applications. Consequently, on February 15, 1993, the superior court reversed the award of TMC’s and Doctors’ certificates of need and remanded all three hospitals’ applications to SHPA for a comparative review to be conducted “as though none of the parties had been previously granted a certificate of need for their proposed perinatal projects.”

The parties amended their applications, and on July 7, 1993, following completion of its review of the amended applications, SHPA rendered its second decision, wherein it again granted TMC’s application and denied Doctors’ and St. Francis’ applications. Doctors and St. Francis again appealed to the Board. On August 9, 1993, prior to the Board’s review of SHPA’s second decision, SHPA adopted a new perinatal services rule (“New Rule”). See SHPA Rule 272-2-.09 (5). Following the adoption of the New Rule, St. Francis withdrew its application.

On May 12, 1994, the Board’s Chairman ordered the commencement of a hearing before a three-member review panel including himself. Prior to the hearing, the Chairman determined that the New Rule governed Doctors’ amended application. On June 30, 1994, the two other members of the panel (the “Board Majority”) reversed SHPA’s second decision and granted Doctors’ application based on “unusual circumstances.” The Chairman dissented on the grounds that Doctors did not have a past record of service to the underprivileged as required by the New Rule; that it did not meet the numerical need requirement of the New Rule; and that it did not meet the “urban county exception” to the need requirement. It is undisputed that the panel unanimously affirmed SHPA’s approval of TMC’s application.

TMC appealed the Board’s decision regarding Doctors’ application to the superior court on the ground that Doctors’ application did not meet the requirements of the New Rule for the reasons stated in the Chairman’s dissent. By order dated October 3, 1994, the superior court reversed the Board Majority’s determination that there was a numerical need for Doctors’ proposed perinatal services, but concluded that Doctors satisfied the urban county exception. The superior court also specifically found that Doctors’ past record of service to the underprivileged was dismal. However, it declined to reverse the Board Majority’s decision on that basis, and thus it subsequently affirmed the award of a certificate of need to Doctors.

[336]*336We granted TMC’s application for leave to appeal the superior court’s October 3, 1994 order. TMC’s appeal of that order was docketed as Case No. A95A1086. Doctors filed a timely notice of cross-appeal, and its cross-appeal was subsequently docketed as Case No. A95A1087.

Case No. A95A1086

1. TMC contends that the superior court erred in affirming the Board Majority’s decision that Doctors had met the requirements set forth in the New Rule. Before reaching this issue, however, we must first determine whether the superior court was correct in finding that the New Rule was applicable to Doctors’ amended application.

The record in this case demonstrates that the New Rule was adopted after SHPA’s 1993 decision to deny Doctors’ amended application, but before the Board had conducted its review of that decision. Under such circumstances, the superior court correctly determined that the Board was required to apply the New Rule to Doctors’ amended application. In Georgia it is well settled that “a reviewing [tribunal] should apply the law as it exists at the time of its judgment rather than the law prevailing at the rendition of the judgment under review.” (Citation and punctuation omitted.) Health Help Sues, of Gainesville v. State Health Planning Agency, 174 Ga. App. 640, 641 (1) (329 SE2d 628) (1985); see former OCGA § 31-6-21.1 (i).

2. Having reached this conclusion, we now address TMC’s argument that the superior court erred in determining that Doctors had complied with the requirements of the New Rule. Specifically, TMC argues that Doctors failed to comply with Standard 8 (v) of the New Rule and that this alone was sufficient to reverse the Board Majority’s decision. We cannot agree.

Standard 8 of the New Rule provides that: “An applicant for new or expanded Basic Perinatal Service or Neonatal Intermediate Care or Neonatal Intensive Care Service shall foster an environment which assures access to services to individuals unable to pay and regardless of payment source or circumstances by the following: (i) providing evidence of written administrative policies and directives related to the provision of services on a nondiscriminatory basis; (ii) providing a written commitment that unreimbursed services for indigent and charity patients in the services will be offered at a standard which meets or exceeds three percent of annual gross revenues for the service after Medicare and Medicaid contractual adjustments and bad debt have been deducted; (iii) providing a written commitment to participate in the Medicaid program; (iv) providing a written commitment to participate in any other public reimbursement programs available for perinatal and neonatal services for which the hospital is [337]*337eligible; and (v) providing documentation of the demonstrated performance of the applicant... of providing services to individuals unable to pay based on the past record of service to Medicare, Medicaid, and indigent and charity patients, including the level of unreimbursed indigent charity care.” SHPA Rule 272-2-.09 (5) (c) (8).

In interpreting Standard 8 (v), it is undisputed that the superior court, like every agency or tribunal previously involved in this matter, unequivocally recognized Doctors’ dismal record of past service to the underprivileged. Yet the superior court nevertheless determined that Doctors was in substantial compliance with Standard 8. We agree.

There is substantial evidence that Doctors complied with four of the five subparts of Standard 8. Although it is true that Standard 8 is written in the conjunctive, this fact is not determinative of the issue of whether each of its subparts must be met before an applicant can be awarded a certificate of need.

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464 S.E.2d 925, 219 Ga. App. 334, 96 Fulton County D. Rep. 86, 1995 Ga. App. LEXIS 1039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medical-center-inc-v-state-health-planning-agency-gactapp-1995.