Providence Hosp. v. Dept. of Health

2 Ohio App. Unrep. 595
CourtOhio Court of Appeals
DecidedApril 19, 1990
DocketCase No. 89AP-651
StatusPublished

This text of 2 Ohio App. Unrep. 595 (Providence Hosp. v. Dept. of Health) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Providence Hosp. v. Dept. of Health, 2 Ohio App. Unrep. 595 (Ohio Ct. App. 1990).

Opinion

BRYANT, J.

In this consolidated appeal, appellants, Good Samaritan Hospital ("Good Samaritan") and the Ohio Department of Health ("ODH"), appeal from the common pleas court's reversal of an order of the Certificate of Need ("CON") Review Board.

On April 22, 1983, appellee, Providence Hospital, located in Hamilton County, filed an application for a CON with ODH, then known as the State Health Planning and Development Agency ("SHPDA"). The application proposed a twenty-four bed obstetric unit be added to the hospital. However, because of a legislatively-mandated "moratorium" on CONs, SHPDA did not begin to review appellee's CON application until July 1984. In March 1985, the director of ODH denied the certificate of need, after which appellee appealed to the CON Review Board pursuant to R.C. 3702.58. A board-appointed hearing examiner conducted a hearing on the matter from August 1985 to January 1986. In July 1986, the hearing examiner submitted his report and recommendation to the board. Although the hearing examiner's findings of fact and conclusions of law were generally favorable to appellee's application, he recommended that the board remand the matter:

"For further consideration regarding the bed need calculation and ultimate demand of bed need in the future based upon all the componentsrelative to obstetricaldemand years, and the cost benefit analysis of the project as applied for, vis-a-vis, its impact on the medical facilities within the HSA-1 and the consumer." (Hearing examiner's decision, at 34-35.)

Appellant Good Samaritan, which had intervened in the proceedings, and appellant ODH filed objections to the report with the board, while appellee filed objections to the hearing examiner's recommendation. On December 22, 1986, the board issued an order denying appellee a CON. The board based its decision in part upon the board's own "additional Findings of Fact and Conclusions of Law independent from those found by the Hearing Examiner."

Appellee appealed the board's decision to the Franklin County Court of Common Pleas in January 1987.1 On April 27, 1989, the common pleas court reversed the board's decision and granted appellee a certificate of need.

Appellants have appealed the commonpleas court decision to this court. Appellee, though, has moved to dismiss the case, contending that both appellants should be dismissed as parties.

Appellee's argument to dismiss appellant ODH relies upon the language of R.C. 119.12, which states, in part:

"*** [A]ppeal by the agency shall be taken on questions of law relating to the constitutionality, construction, or interpretation of statutes and rules of the agency, and in such appeal the court may also review and determine the correctness of the judgment of the court of common pleas that the order of the agency is not supported by any reliable, probative and substantial evidence in the entire record." (Emphasis added.)

This court has held that, "within the meaning of Section 119.12, Revised Code, and 'interpretation'refers to a specific finding by the trial court as to the meaning or application of a particular statute or regulation." Mentor Marinas v. Bd. of Liquor Control (1964), 1 Ohio App. 2d 219, 223. In the present case, appellee argues that the trial court did not make a finding on the meaning or application of a particular statute because the sole basis of the trial court's decision, according to appellee, was the court's finding a lack of reliable, probative, and substantial evidence.

However, we find that the trial court's decision interpreted R.C. 119.09. The trial court stated in its opinion that:

"*** The Board's authority to modify decisions of its hearing examiners is set forth in R.C. Section 119.09. That section indicates that the Board may approve, modify, or disapprove [597]*597an examiner's recommendations; it does not authorize modification of an examiner's findings of fact and conclusions or law. ***

«*** This Court find that such a gross modification of the examiner's report clearly exceeds the Board's statutory powers under R.C. Section 119.09." (Emphasis added.)

The trial court then stated:

"Further, this Court finds that the Board's independent findings and conclusions are not supportedby reliable, probative, and substantial evidence. ***"

As such, the trial court's factual determination was an alternative basis for its decision, not the sole basis. None of the case law appellee cites indicates that an agency cannot appeal from an alternative ground for a decision, and we will not read that restriction into the statute.

In addition, we note that, in a previous case, we found that the identical issue of the relationship between a board and its hearing examiner under R.C. 119.09 was appealable by an agency. See Blinn v. Ohio Bureau of Employment Services (June 18, 1985), Franklin App. No. 85AP-342, unreported (1985 Opinions 1732). Indeed, the trial court's interpretation of R.C. 119.09 in Blinn was much less explicit than the trial court's interpretation in the present case. See Id. at 1734. Accordingly, we deny appellee's motion to dismiss appellant ODH.

Appellee also contends that we should dismiss appellant Good Samaritan from the appeal, since Good Samaritan did not involve itself in the proceedings in the court of common pleas. Good Samaritan, though, argues that, even though it did not file a brief with the common pleas court, it was a party to appellee's appeal from the board's order because Good Samaritan had been an adverse party to appellee in the proceedings before the board.

In support, Good Samaritan cites In re Vacation of Road (1966), 6 Ohio App. 2d 73, 77, which states "*** in every appeal, unless otherwise prescribed, the adversary parties in the original proceedings who are not parties appellant automatically become parties appellee. ***" In later cases, the Ohio Supreme Court has followed the principle stated in re Vacation. See Thomas v. Webber (1968), 15 Ohio St. 2d 177, 181; Gold Coast Realty v. Bd. of Zoning Appeals (1971), 26 Ohio St. 2d 37, 40. Appellee argues in response that the bases for the decisions in Thomas and Gold Coast are inapplicable to R.C. 119.12 appeals. While the Thomas and Gold Coast decisions did involve R.C. Chapter 2506 appeals from an agency of a political subdivision, in contrast to R.C. 119.12 appeals from a state agency, the Supreme Court's reasoning would apply to administrative appeals in general. In Thomas, for example, the court found that township freeholders and electors "would be parties in the Common Pleas Court appeal" because they were "adverse and necessary parties." Id. at 181. Here, Good Samaritan intervened in the proceedings before the board as a party adverse to appellee; consequently, Good Samaritan was a party to appellee's appeal to the common pleas court. We therefore deny appellee's motion to dismiss Good Samaritan.

In regard to the merits of the case, appellant ODH assigns the following three errors:

"1. The Court of Common Pleas erred in construing the provisions of R.C. §119.09 to prohibit the state certificate of need review board from substituting its judgment on issues of law and fact for that of its hearing examiner.

"2.

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2 Ohio App. Unrep. 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/providence-hosp-v-dept-of-health-ohioctapp-1990.