SGOH Acquisition Inc. v. Missouri Department of Mental Health

914 S.W.2d 402, 1996 Mo. App. LEXIS 146, 1996 WL 32015
CourtMissouri Court of Appeals
DecidedJanuary 30, 1996
DocketWD 51304
StatusPublished
Cited by8 cases

This text of 914 S.W.2d 402 (SGOH Acquisition Inc. v. Missouri Department of Mental Health) 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
SGOH Acquisition Inc. v. Missouri Department of Mental Health, 914 S.W.2d 402, 1996 Mo. App. LEXIS 146, 1996 WL 32015 (Mo. Ct. App. 1996).

Opinion

FENNER, Chief Judge.

SGOH Acquisition, Inc. d/b/a Doctor’s Hospital of Springfield (Hospital) appeals the judgment of the trial court affirming the denial of its application for certification as a Community Psychiatric Rehabilitation Center (CPRC) by the Missouri Department of Mental Health (Department). The judgment of the trial court is affirmed.

On April 22, 1993, Hospital filed an application with the Department for certification as a CPRC pursuant to 9 CSR 30-4.031 *404 (1993). After receiving additional information from Hospital regarding its application, the Department conducted an on-site survey of Hospital’s facilities on August 17, 1993. On August 31, 1993, the Department sent Hospital an Initial CPRC Survey Report setting forth numerous deficiencies in administration, fiscal management, personnel and staff development, environment, client rights, service provision, treatment, and behavior management and requesting a plan of correction within thirty working days. Hospital submitted its plan of correction on September 8,1993.

On September 24, 1993, the Department requested additional information from Hospital because the plan continued to contain deficiencies. Specifically, information regarding the geographic area that Hospital intended to serve and the qualifications of its proposed psychosocial director was needed to cure the defects. Hospital then requested an updated service area map and supplied the Department with a revised job description of the PSR director on September 28,1993. On October 4, 1993, a revised plan of correction regarding Hospital’s intended service area was sent to the Department.

On October 28,1993, the Department notified Hospital that certification activities would be reviewed in light of new emergency rules promulgated by the Department. After receiving the October 28, 1993, letter from the Department, Hospital requested certification retroactive to October 12, 1993. On November 4, 1993, the Department responded that it was not prepared to grant Hospital’s CPRC certification because the review related to the new emergency rules had not been completed. Hospital again requested certification retroactive to September 20, 1993, on May 5, 1994. The final regulations relating to the emergency rules became effective on April 9, 1994. The Department notified Hospital on June 1, 1994, that it did not meet certification standards on September 20, 1993, to compel retroactive certification, nor was it eligible for certification under the new final rules. Hospital requested an administrative hearing pursuant to 9 CSR 30-4.031(11) (1993).

A hearing was held on August 19, 1994, before the Administrative Hearing Officer for the Missouri Department of Mental Health. On August 31, 1994, the hearing officer issued findings of fact and conclusions of law upholding the Department’s denial of Hospital’s application for certification as a CPRC.

On September 30, 1994, Hospital filed a petition for judicial review pursuant to section 536.100, RSMo 1994 with the Circuit Court of Cole County. It argued that the Department accepted the October 4, 1993, plan of correction by telephone conversation and that the Department’s subsequent action regarding the emergency rules constituted a revocation of the certification rather than a denial. The trial court issued an order finding that the cause was a denial of Hospital’s application for certification and that the denial was not arbitrary, capricious, unreasonable, or an abuse of discretion.

An appellate court reviews the decision of the administrative agency, not the judgment of the circuit court. Prince v. Division of Family Servs., 886 S.W.2d 68, 70 (Mo.App.1994). The scope of judicial review is limited to whether the decision of the administrative agency was supported by substantial and competent evidence, was procedurally unlawful or otherwise unauthorized by law, was arbitrary, capricious or unreasonable, or constituted an abuse of discretion. State ex rel. Columbia Tower, Inc. v. Boone County, 829 S.W.2d 534, 535-36 (Mo.App. 1992); § 536.140, RSMo 1994. The evidence must be viewed in the light most favorable to the agency’s decision. Prince, 886 S.W.2d at 70. Determination of the credibility of witnesses is for the administrative agency. Columbia Tower, 829 S.W.2d at 537.

On appeal, Hospital argues that the trial court erred in upholding the denial because the denial was arbitrary and capricious and not supported by competent and substantial evidence upon the record. It contends that (1) the refusal by the Department to certify it as a CPRC was a revocation of certification rather than a denial, (2) the Department did not follow statutory and regulatory procedures, and (3) the Department exceeded its statutory emergency rule making authority.

*405 To be eligible for certification as a CPRC under the final 1994 regulations, Hospital must have been certified at least once prior to November 7, 1993, and must have maintained certification continuously since November 7, 1993. 9 CSR 30-4.031(2)(E) (1994). Hospital contends that it was entitled to certification in September or October 1993 and, thus, eligible under the final 1994 regulations which became effective on April 9,1994.

Hospital first argues that it was entitled to certification in September or October 1993 because there were no uncorrected deficiencies after the submission of its final plan of correction. It also claims that the revised plan of correction was accepted by the Department by telephone and that the Department’s subsequent refusal to certify was a revocation rather than a denial of certification.

The record reveals that Hospital’s application and plans of correction were replete with deficiencies which prevented its certification as a CPRC. The initial survey report set forth deficiencies in numerous areas, and Hospital’s first plan of correction faded to cure all of them. The Department then requested additional information regarding the intended service area of Hospital and the qualification of the proposed PSR director. Eventually, Hospital submitted a revised plan of correction which clarified the service area and provided a job description of the PSR director. The revised plan, however, did not identify a proposed director or his or her qualifications. 1

At the administrative hearing, the Director of Psychiatric Services for Hospital testified that she was told in an October 5, 1993, telephone conversation with James Hunter, the Director of the Bureau of Quality Improvement for the Department, that the revised plan of correction met the certification standards. Mr. Hunter, however, denied informing Hospital that its CPRC application met the certification standards.

Furthermore, the October 28, 1993, correspondence from the Department to Hospital regarding the emergency rules clearly shows that Hospital was not certified at that time. Additionally, Mr. Hunter testified that prior to October 28,1993, Hospital had never been certified as a CPRC.

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Bluebook (online)
914 S.W.2d 402, 1996 Mo. App. LEXIS 146, 1996 WL 32015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sgoh-acquisition-inc-v-missouri-department-of-mental-health-moctapp-1996.