St. Joseph's Hospital, Inc. v. Thunderbolt Health Care, Inc.

517 S.E.2d 334, 237 Ga. App. 454, 99 Fulton County D. Rep. 1548, 1999 Ga. App. LEXIS 453
CourtCourt of Appeals of Georgia
DecidedApril 1, 1999
DocketA99A0065, A99A0066
StatusPublished
Cited by3 cases

This text of 517 S.E.2d 334 (St. Joseph's Hospital, Inc. v. Thunderbolt Health Care, Inc.) 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
St. Joseph's Hospital, Inc. v. Thunderbolt Health Care, Inc., 517 S.E.2d 334, 237 Ga. App. 454, 99 Fulton County D. Rep. 1548, 1999 Ga. App. LEXIS 453 (Ga. Ct. App. 1999).

Opinion

Beasley, Presiding Judge.

In two separate appeals, St. Joseph’s Hospital and the State Health Planning Agency (“SHPA”) challenge the decision of the Superior Court of Twiggs County which reversed a final decision of the State Health Planning Review Board awarding a certificate of need (“CON”) to St. Joseph’s for an 11-bed nursing facility in Chatham County. The Review Board had upheld a hearing officer’s findings of fact and conclusions of law entered after a formal hearing. The superior court ruled in favor of Thunderbolt Health Care, whose CON application had been denied, and held that the Review Board’s decision “was improper.” The cases are consolidated for this appeal.

The advent of subacute care, a new way of providing medical care, was occurring in Georgia when St. Joseph’s, Thunderbolt and Candler Hospital, Inc. (no longer a party) applied to SHPA for CONs to add 11 beds to their respective facilities. Their applications were triggered by a projected unmet need for 11 nursing home beds in Chatham County by 1998. The projected need was based on a calculation provided in former SHPA Rule 272-2-.09 (9) (b) 1. which allowed 47 “nursing home beds” per 1,000 projected civilian non-institutional population age 65 or older in Chatham County. 1

In response to notice of the unmet need, St. Joseph’s submitted an application to provide 11 beds by converting 13 general acute care hospital beds into 11 skilled nursing beds. The principal purpose of the conversion was to offer what St. Joseph’s categorized as “subacute care” in a skilled nursing unit to be located within the hospital. At the same time, Thunderbolt submitted an application to add 11 beds to its traditional nursing home which at that time was under construction in Chatham County.

*455 On July 19,1995, after a comparative review of each of the three applicants, SHPA awarded a CON for the 11 beds, to St. Joseph’s. Thunderbolt requested an administrative appeal before the SHPA Review Board, contesting denial of its application and the award to St. Joseph’s. Following an administrative hearing on May 30, 1996, the Review Board hearing officer issued 24 findings of fact and 26 conclusions of law upholding SHPA’s award of the CON to St. Joseph’s. Six months later the Review Board affirmed and adopted the hearing officer’s findings and conclusions as its final decision. Thunderbolt petitioned Twiggs Superior Court for judicial review.

Thunderbolt essentially asserted that short-term, subacute care, skilled nursing beds offered by St. Joseph’s did not meet the calculated unmet need for “nursing home beds” as defined in the rules. Thunderbolt contends that comparing different types of applications was an abuse of discretion, and that its application should have been considered on its own for a determination of whether it was entitled to the CON. Accordingly, Thunderbolt asserts that SHPA’s procedure denied Thunderbolt its constitutionally guaranteed right of due process.

On May 20, 1998, the superior court reversed the board upon concluding, without written analysis: “After reviewing all of the briefs, citations, evidence, and authority submitted, the Court finds that the decision of the State Health Planning Board to grant the Certificate Of Need to St. Joseph’s is improper.”

We granted SHPA’s and St. Joseph’s applications to appeal. They contend the court exceeded the limited scope of review authorized as to final agency decisions, erred by reweighing the evidence, failed to accord due deference to SHPA’s interpretations of SHPA’s own rules, failed to make required findings, failed to find that Thunderbolt waived its arguments below, and erred in reversing the Review Board’s decision.

1. The trial court was authorized to reverse or modify the Review Board’s final decision only if substantial rights of Thunderbolt had been prejudiced because the procedures or the final decision of the administrative process violated constitutional or statutory provisions, exceeded SHPA’s authority, resulted from unlawful procedures, were affected by other error of law, were not supported by substantial evidence, or were arbitrary or capricious or otherwise abusive of discretion. 2 Appellants contend reversal is warranted because the court failed to make one of the required findings but merely concluded the decision “was improper.”

Under the Administrative Procedure Act, which is specifically *456 made applicable through OCGA § 31-6-44 (m),

[w]henever a superior court judge is required by law to make certain findings in order to return a verdict [sic], the presumption is that he has made the required findings, absent a showing to the contrary. This presumption applies even if the required findings are not specifically set out in the order. [Cit.P

Accepting such, this Court must go on and “determine whether the judge of the superior court has in his own final ruling committed an error of law.” 3 4 Accordingly consideration must be given to the issues raised by Thunderbolt in its appeal to the superior court.

2. The SHPA rule which precipitated projection of an 11-bed unmet need in Chatham County was in the part of SHPA’s rules entitled “Skilled Nursing and Intermediate Care Facilities.” 5 That section projects unmet need for “nursing home” beds, 6 and “nursing home” is defined as follows: “ A nursing home’ is a long-term facility. ... A nursing home may be licensed as a skilled nursing facility, an intermediate care facility, or an intermingled facility.” No definition is given for “long-term,” no precise time period is set, and the rule does not mention subacute care.

SHPA is the state agency chartered to administer the certificate of need program and to adopt rules and procedures to administer its functions. 7 SHPA’s authority to create rules and procedures is limited by the statutes that establish it, and SHPA is “not authorized to enlarge the scope of, or supply omissions in, a properly-enacted statute.” 8

By statute, certificates of need are required for “new institutional health services or health care facilities.” 9 The meaning of “new institutional health service” includes construction, development, or other establishment of a new “health care facility.” 10 The definition of health care facility is broad and includes, among others, “skilled nursing facilities”: 11

*457

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Cite This Page — Counsel Stack

Bluebook (online)
517 S.E.2d 334, 237 Ga. App. 454, 99 Fulton County D. Rep. 1548, 1999 Ga. App. LEXIS 453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-josephs-hospital-inc-v-thunderbolt-health-care-inc-gactapp-1999.