St. Joseph's Hospital of Buckhannon v. Stonewall Jackson Memorial Hospital Co., and West Virginia Health Care Authority

CourtWest Virginia Supreme Court
DecidedNovember 13, 2025
Docket24-347
StatusPublished

This text of St. Joseph's Hospital of Buckhannon v. Stonewall Jackson Memorial Hospital Co., and West Virginia Health Care Authority (St. Joseph's Hospital of Buckhannon v. Stonewall Jackson Memorial Hospital Co., and West Virginia Health Care Authority) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court 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 of Buckhannon v. Stonewall Jackson Memorial Hospital Co., and West Virginia Health Care Authority, (W. Va. 2025).

Opinion

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

September 2025 Term FILED _______________ November 13, 2025 released at 3:00 p.m. No. 24-347 C. CASEY FORBES, CLERK SUPREME COURT OF APPEALS _______________ OF WEST VIRGINIA

ST. JOSEPH’S HOSPITAL OF BUCKHANNON, INC., Petitioner,

v.

STONEWALL JACKSON MEMORIAL HOSPITAL CO., and WEST VIRGINIA HEALTH CARE AUTHORITY, Respondents.

________________________________________________________

Appeal from the Intermediate Court of Appeals of West Virginia No. 23-ICA-265 (West Virginia Health Care Authority CON File #23-7-12659-X)

REVERSED AND REMANDED

Submitted: September 17, 2025 Filed: November 13, 2025

Albert F. Sebok, Esq. Thomas G. Casto, Esq. Alaina N. Crislip, Esq. Webster J. Arceneaux, III, Esq. Neil C. Brown, Esq. Hannah K.W. Petros, Esq. Colton Koontz, Esq. Lewis Gianola PLLC Jackson Kelly PLLC Charleston, West Virginia Charleston, West Virginia Counsel for Respondent Stonewall Counsel for Petitioner St. Joseph’s Jackson Memorial Hospital Co. Hospital of Buckhannon, Inc. John B. McCuskey, Esq. Attorney General Michael R. Williams, Esq. Solicitor General Frankie A. Dame, Esq. Assistant Solicitor General Charleston, West Virginia, Counsel for Respondent West Virginia Health Care Authority

CHIEF JUSTICE WOOTON delivered the Opinion of the Court. SYLLABUS BY THE COURT

1. “Interpreting a statute or an administrative rule or regulation presents

a purely legal question subject to de novo review.” Syl. Pt. 1, Appalachian Power Co. v.

State Tax Dep’t of W. Va., 195 W. Va. 573, 466 S.E.2d 424 (1995).

2. “The judiciary is the final authority on issues of statutory construction,

and we are obliged to reject administrative constructions that are contrary to the clear

language of a statute.” Syl. Pt. 5, CNG Transmission Corp. v. Craig, 211 W. Va. 170, 564

S.E.2d 167 (2002).

3. “The doctrine of stare decisis does not normally apply to

administrative decisions.” Syl. Pt. 5, Chesapeake & Potomac Tel. Co. of W. Va. v. Pub.

Serv. Comm’n of W. Va., 171 W. Va. 494, 300 S.E.2d 607 (1982).

4. “It is fundamental law that the Legislature may delegate to an

administrative agency the power to make rules and regulations to implement the statute

under which the agency functions. In exercising that power, however, an administrative

agency may not issue a regulation which is inconsistent with, or which alters or limits its

statutory authority.” Syl. Pt. 3, Rowe v. W. Va. Dep’t of Corr., 170 W. Va. 230, 292 S.E.2d

650 (1982).

i 5. “The primary object in construing a statute is to ascertain and give

effect to the intent of the Legislature.” Syl. Pt. 1, Smith v. State Workmen’s Comp. Com’r,

159 W. Va. 108, 219 S.E.2d 361 (1975).

6. “A statutory provision which is clear and unambiguous and plainly

expresses the legislative intent will not be interpreted by the courts but will be given full

force and effect.” Syl. Pt. 2, State v. Epperly, 135 W. Va. 877, 65 S.E.2d 488 (1951).

7. In West Virginia Code section 16-2D-8(a)(1) (2023), the phrase

“construction . . . of a health care facility” includes the erection or building of a structure

for offering or providing health services.

ii WOOTON, Chief Justice:

The respondent, Stonewall Jackson Memorial Hospital Company

(“Stonewall”), has plans to construct a new hospital complex and then move its existing

operations to that new facility. The petitioner, St. Joseph’s Hospital of Buckhannon, Inc.

(“St. Joseph’s”), asserts that Stonewall is required to obtain a certificate of need from the

respondent West Virginia Health Care Authority (“the Authority”) because West Virginia

law mandates that healthcare providers obtain such a certificate for “[t]he construction . . .

of a health care facility[.]” W. Va. Code § 16-2D-8(a)(1) (2023) (“Section 8(a)(1)”).

Stonewall filed an application with the Authority asking whether it needed a

certificate of need for its construction project. On July 12, 2023, the Authority issued a

final decision finding that no certificate of need was required. The Authority reasoned that,

despite Stonewall’s proposal to construct a new health care facility, the Authority had an

unwritten guideline that a certificate of need is unnecessary if a healthcare provider is

merely “relocating” from an existing building to a newly constructed one. The Intermediate

Court of Appeals of West Virginia (“ICA”) affirmed the Authority’s decision.

As set forth below, we find that both the Authority and the ICA erred in their

interpretation of West Virginia’s certificate of need statutes and that their respective

decisions must be reversed. Under the clear and unambiguous language of Section 8(a)(1),

the Legislature has mandated that health care entities must seek a certificate of need for the

1 construction of a new hospital building. Accordingly, we remand the case to the Authority

for further proceedings consistent with the clear language of the statute.

I. Factual and Procedural Background

St. Joseph’s operates a twenty-five-bed hospital in rural Buckhannon, West

Virginia. Since 2014, St. Joseph’s has been designated as a “critical access hospital” or

“CAH” by the federal Centers for Medicare & Medicaid Services. The CAH designation

permits St. Joseph’s to receive a higher reimbursement rate for Medicare and Medicaid 1 patients, which in turn allows it to maintain financial stability. For St. Joseph’s to preserve

its CAH status, it must operate its rural facility further than fifteen mountainous miles from 2 other hospitals.

1 Before obtaining the 2014 CAH designation, St. Joseph’s struggled financially and, apparently, faced closure. The CAH program was created by Congress in response to a rash of rural hospital closures during the 1980s and 1990s, and it was designed to reduce the financial vulnerability of rural hospitals and improve access to healthcare in rural communities. Hospitals with a CAH designation are reimbursed by Medicare (and, in many states, by Medicaid) based on the reasonable costs incurred to provide services; without the CAH designation, a hospital receives a fixed, predetermined amount for services under a prospective payment system. See 42 C.F.R. § 413.70 (2019) (payment for services). Within a year of receiving the CAH designation, St. Joseph’s regained financial stability. 2 Federal law establishes the distance requirement: a CAH designated facility must be “located more than a 35-mile drive (or, in the case of mountainous terrain or in areas with only secondary roads available, a 15-mile drive) from a hospital . . .” 42 USC § 1395i- 4(c)(2)(B)(i) (2010) (emphasis added); see also 42 C.F.R. § 485.610(c)(1) (2023) (same).

2 Stonewall operates a hospital with seventy beds in Weston, West Virginia,

about sixteen miles from the hospital operated by St. Joseph’s. Stonewall’s current hospital

facility was built in 1972. It wants to construct a new, state-of-the-art hospital on Staunton

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pittston Coal Group v. Sebben
488 U.S. 105 (Supreme Court, 1988)
CNG Transmission Corp. v. Craig
564 S.E.2d 167 (West Virginia Supreme Court, 2002)
State v. Epperly
65 S.E.2d 488 (West Virginia Supreme Court, 1951)
DeVane v. Kennedy
519 S.E.2d 622 (West Virginia Supreme Court, 1999)
Smith v. State Workmen's Compensation Commissioner
219 S.E.2d 361 (West Virginia Supreme Court, 1975)
Central West Virginia Refuse, Inc. v. Public Service Commission
438 S.E.2d 596 (West Virginia Supreme Court, 1993)
Eggleston v. West Virginia Department of Highways
429 S.E.2d 636 (West Virginia Supreme Court, 1993)
State Ex Rel. Cohen v. Manchin
336 S.E.2d 171 (West Virginia Supreme Court, 1985)
Chesapeake & Potomac Telephone Co. v. Public Service Commission
300 S.E.2d 607 (West Virginia Supreme Court, 1982)
State v. General Daniel Morgan Post No. 548
107 S.E.2d 353 (West Virginia Supreme Court, 1959)
West Virginia Health Care Cost Review Authority v. Boone Memorial Hospital
472 S.E.2d 411 (West Virginia Supreme Court, 1996)
Rowe v. W. Va. Dept. of Corrections
292 S.E.2d 650 (West Virginia Supreme Court, 1982)
Vest v. Cobb
76 S.E.2d 885 (West Virginia Supreme Court, 1953)
Appalachian Power Co. v. State Tax Department
466 S.E.2d 424 (West Virginia Supreme Court, 1995)
State v. General Daniel Morgan Post No. 548
107 S.E.2d 353 (West Virginia Supreme Court, 1959)
In re Snuffer
456 S.E.2d 493 (West Virginia Supreme Court, 1995)
Jenkins v. City of Elkins
738 S.E.2d 1 (West Virginia Supreme Court, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
St. Joseph's Hospital of Buckhannon v. Stonewall Jackson Memorial Hospital Co., and West Virginia Health Care Authority, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-josephs-hospital-of-buckhannon-v-stonewall-jackson-memorial-hospital-wva-2025.