Sells Rest Home, Inc. v. Dept. of Social Services

829 S.W.2d 59, 1992 Mo. App. LEXIS 604, 1992 WL 67088
CourtMissouri Court of Appeals
DecidedApril 7, 1992
DocketNo. WD 44974
StatusPublished
Cited by2 cases

This text of 829 S.W.2d 59 (Sells Rest Home, Inc. v. Dept. of Social Services) 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
Sells Rest Home, Inc. v. Dept. of Social Services, 829 S.W.2d 59, 1992 Mo. App. LEXIS 604, 1992 WL 67088 (Mo. Ct. App. 1992).

Opinion

LOWENSTEIN, Chief Judge.

Appellant Sells Rest Home, Inc. (Sells), appeals from the Administrative Hearing Commission’s (Commission) denial of Sells’ request for an increase in its Medicaid per day reimbursement rate. This court initial[60]*60ly notes that the state and federal regulations under which this case was decided by the Commission are no longer in effect, being superseded by recent revisions of the Medicaid regulations at both the state and federal level. Therefore, this case affects only reimbursement rulings made under the guidelines in effect in 1990, and has little or no precedential value.

The focus of this case is that a nursing home may be reimbursed under the Medicaid program for costs of doing business as a nursing home, nursing personnel salaries being one such cost. In order to take part in the reimbursement program, the homes are required to be licensed under state and federal guidelines and to follow state and federal regulations regarding administration, nursing services, patient care, physical environment, etc. There are two license levels important in this ease, “intermediate care” and “skilled care,” each with requirements spelled out carefully in the state and federal guidelines. Once a nursing home becomes part of the Medicaid reimbursement program, the home may apply for a rate increase under several circumstances, one of which is a change in the level of care the home is licensed to give its residents.

Sells operates a 94 bed nursing home in New Madrid County, currently serving more than 60 patients. The facility, originally opened in 1971, was certified (i.e. licensed) as an intermediate care facility under state and federal guidelines, and provided long-term residential care. Sells has participated in the Missouri Medicaid program since opening. In June of 1989, Sells was receiving more acutely ill patients, and felt it should raise its standard of care. Sells therefore decided to become certified as a skilled nursing facility, a higher level of certification and one designed to provide these acutely ill patients with necessary care. To change its level of care under the state and federal guidelines, Sells was obliged to change its operation somewhat. Of interest to this case, it added nursing personnel in June of 1989, increasing both its registered nurse (RN) and licensed practical nurse (LPN) staffing. The major changes involved having an RN on the day shift seven days a week, and doubling the LPN staff on the evening shift.

Having been certified as a skilled nursing facility, Sells then applied for a Medicaid rate increase, under the state rule allowing for increases in per day rates for costs “directly related to a change in level of care provided by a facility,” 13 CSR 70-10.010(7)(D)1.B (1989). The Missouri Department of Medical Services granted Sells a per day increase of $1.31; none of this increase, however, was related to RN or LPN salaries. Sells then filed a complaint with the Commission, alleging that reimbursement for the nursing salaries should have been included in its increase. The per day rate increase that Sells requested before the Commission was $2.46: $1.43 corresponding to RN salary, and $1.03 corresponding to LPN salary.1

The Commission, after finding facts and making conclusions of law, granted Sells a $0.41 increase,2 corresponding to RN salary, and denied any increase for LPN salary. Sells has appealed, first to the circuit court, and now here, requesting an additional $1.02 in RN salary reimbursement, and $1.03 in LPN salary reimbursement. The sole question confronting this court in the four points on appeal is whether, under the state and federal guidelines as they then existed, Sells satisfied its burden of proving that these RN and LPN salaries were “directly related” to the upgrade in level of care from an intermediate care facility to a skilled nursing facility.

This court notes that there are two sets of state and federal regulations important to this case: 1) the Missouri regulation governing changes in Medicaid rate reimbursement in effect in 1990, found in 13 CSR 70-10.010, stating that adjustments in a per day rate may be made for a change in level of care for “those costs directly relat[61]*61ed to a change in the level of care provided by a facility,” subpart (7)(D)1.B, and that rate determination in general is based on a “determination of reasonable and adequate reimbursement levels for allowable cost items described in this rule which are related to ordinary and necessary care for the level of care provided for an efficiently and economically operated facility,” subpart (7)(F); and, 2) those applicable state and federal nursing personnel regulations in effect in 1990 addressing skilled nursing facilities, found in 13 CSR 15-14.042 (Missouri), and in 42 CFR 405 (federal):3

State skilled care requirements
*RN on day shift 7 days a week —13 CSR 15-14.042(35)
*Full-time Director of Nursing (may be day RN) —13 CSR 15-14.042(35)
*LPN (with RN on call) or RN on evening and night shifts —13 CSR 15-14.042(35)
*Nursing staff sufficient to meet needs of residents —13 CSR 15-14.042(37)
Federal skilled care requirements
*State skilled care license —42 CFR 405.1120(a)(1)
*RN on day shift 7 days a week —42 CFR 405.1124(a) & (c)
*Full-time Director of Nursing (may be day RN) —42 CFR 405.1124(a)
*Assistant director of nursing if Director has “other institutional duties” —42 CFR 405.1124(a)
*Nursing staff sufficient to meet needs of residents —42 CFR 405.1124(c)

This court also notes the following decisions guiding review of this case: 1) the appellate court reviews the decision of the Administrative Hearing Commission, not the circuit court, City of Cabool v. Missouri State Board of Mediation, 689 S.W.2d 51, 53 (Mo. banc 1985), 2) this court may not substitute its judgment for that of the Commission, but will determine whether substantial evidence reasonably supports the Commission’s findings of fact, Barnes Hospital v. Missouri Commission on Human Rights, 661 S.W.2d 534, 535 (Mo. banc 1983), and substantial evidence means competent evidence, that, if believed, would have probative force upon the issues, Citizens for Rural Preservation v. Robinett, 648 S.W.2d 117

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829 S.W.2d 59, 1992 Mo. App. LEXIS 604, 1992 WL 67088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sells-rest-home-inc-v-dept-of-social-services-moctapp-1992.