Missouri Health Care Ass'n v. Missouri Health Facilities Review Committee

777 S.W.2d 241, 1989 Mo. App. LEXIS 240, 1989 WL 13445
CourtMissouri Court of Appeals
DecidedFebruary 21, 1989
DocketNo. WD 40459
StatusPublished
Cited by7 cases

This text of 777 S.W.2d 241 (Missouri Health Care Ass'n v. Missouri Health Facilities Review Committee) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri Health Care Ass'n v. Missouri Health Facilities Review Committee, 777 S.W.2d 241, 1989 Mo. App. LEXIS 240, 1989 WL 13445 (Mo. Ct. App. 1989).

Opinion

NUGENT, Judge.

Plaintiff Missouri Health Care Association (Association) appeals from the trial court’s decision to dismiss its petition. In the petition the Association asked the court to review the decision of the defendant Missouri Health Facilities Review Committee (Committee) that the Missouri certificate of need law, §§ 197.300 to 197.365,1 does not apply to a proposed health care facility that defendant Bethesda Health Group of St. Louis, Inc. (Bethesda) intends to build. We affirm.

The certificate of need law vests the Committee with the responsibility to administer the law’s provisions. § 197.310. The Committee holds the authority to review and grant or deny applications for a certificate of need, id., and to make rules or regulations to meet the objectives of the law. § 197.320. The Association is a not-for-profit Missouri corporation composed of [242]*242operators of Missouri long-term health-care providers. Bethesda is a not-for-profit Missouri corporation.

On March 23, 1987, Bethesda applied for a certificate of need for the construction of a 210-bed nursing home. The Committee recognized the Association as an intervenor in the June 22, 1987, hearing at which it denied Bethesda’s application, finding that no need existed for the facility. Bethesda then asked the Committee for an exemption from the requirements of the law because the facility would be built with private funds. Section 197.360 exempts gifts or grants to facilities that do not require the expenditure of public funds from the provisions of §§ 197.300 to 197.365, the certificate of need law. The Committee deferred decision on the exemption to provide Bethesda with an opportunity to document its status under § 197.360.

At the Committee’s September 17, 1987, meeting the Association again appeared as an intervenor. The Committee considered a motion to adopt a definition of “gift” within the meaning of § 197.360, as “any gifts of any discretionary nature to the institution.” The motion carried by a six-to-one vote. Later, by a four-to-one vote the Committee determined that Bethesda’s facility should be exempted from the certificate of need law’s requirements.

On October 15,1987, the plaintiff Association filed in the Cole County circuit court a petition for review of the Committee’s decision. The petition alleged that the Committee had failed to follow appropriate rule-making procedures in adopting its definition of “gift” and that it had improperly granted Bethesda an exemption. Bethesda moved to dismiss the petition, alleging that the Association lacks standing in its own right or in its representative capacity and that venue is improper in Cole County. The court sustained Bethesda’s motion, and the plaintiff now appeals.

Under its first point of error the Association argues that its status as an intervenor in the proceedings before the Committee provides it with standing to seek judicial review of those proceedings. Neither of the cases the plaintiff cites for that proposition applies to the instant case. In State ex rel. Consumers Public Service Co. v. Public Service Commission, 352 Mo. 905, 180 S.W.2d 40 (1944) (en banc), the court allowed an appeal by an intervenor in the proceedings before the commission. In so doing, however, the court recognized that the statutory scheme made intervenors parties to the hearing. Id., 180 S.W.2d at 46. In In re Additional Magistrates for St. Louis County, 580 S.W.2d 288 (Mo.1979) (en banc), the court allowed an appeal by St. Louis County, which had been recognized as an amicus in the proceedings below. There the county had actively participated as a party. The court noted that because the county ultimately would be required to pay the salaries of the new magistrates, it had a statutory right to appear as a party. Id. at 295 n. 6.

The Association’s participation in the Committee hearings here, however, did not amount to participation as a party. The certificate of need law provides that “affected persons” should be given notice of impending Committee action and an opportunity to be heard by the Committee. See § 197.330.1(2), (3), and (6). Section 197.305(1) includes within its definition of “affected persons,” “health care facilities within the service area in which the proposed new health care service , is to be developed.” Arguably, then, because some of the Association’s members fit that definition, the Association is an “affected person.” 2

[243]*243The fact that the Association might qualify as an “affected person” does not by itself qualify it as a party in the proceedings before the Committee. Although the statutory scheme for administering the certificate of need law provides for participation by “affected persons,” that level of participation does not make an “affected person” a party. The statute provides that only an applicant or the local health systems agency may appeal from the decision of the Committee. See § 197.335; Community Care Centers, Inc. v. Missouri Health Facilities Review Committee, 735 S.W.2d 13, 14 (Mo.App.1987) (denying competitor health care facility standing to appeal); PIA Psychiatric Hospitals, Inc. v. Missouri Health Facilities Review Committee, 724 S.W.2d 524, 525 (Mo.App.1986).

When the Committee recognized the Association as an intervenor, it provided it only with the opportunity to participate as an “affected person.” As such the Association was entitled to notice of the Committee’s proceedings and decision and an opportunity to present its views to the committee. See PIA Psychiatric Hospitals, supra, at 525. Its status as an “affected person” however, did not give it the right to appeal the committee’s decision. Id. We conclude that the Association’s participation as an intervenor did not create standing for it to petition for judicial review of the Committee’s decision.

The Association seeks to distinguish the cases holding that competitors cannot challenge a decision to grant a certificate of need to a competitor by arguing that this case does not involve the grant of a certificate. The Committee denied Bethesda’s application. Instead, the plaintiff challenges the procedures the Committee followed in construing the statute and its decision that the statute does not apply to Bethesda. The Association argues that by granting Bethesda an exemption, the Committee failed to uphold the purpose of the statute. That decision, the plaintiff argues, carries broader implications than a decision to grant a single certificate of need to a single applicant because it could operate to remove a large number of facilities from the law’s coverage.

With that argument the Association places itself in the position of protector of the public interest. If we do not give the Association standing to challenge the Committee’s decision to allow parties to escape from the statutes requirements, who will? 3 The plaintiff’s concentration on the Committee’s actions goes more to the merits of the case than to the Association’s right to challenge those actions.

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Bluebook (online)
777 S.W.2d 241, 1989 Mo. App. LEXIS 240, 1989 WL 13445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-health-care-assn-v-missouri-health-facilities-review-committee-moctapp-1989.