St. Mary's Healthcare Center of Pierre v. Hughes County

537 N.W.2d 366, 1995 S.D. LEXIS 111, 1995 WL 511613
CourtSouth Dakota Supreme Court
DecidedAugust 30, 1995
DocketNos. 18943, 18944
StatusPublished

This text of 537 N.W.2d 366 (St. Mary's Healthcare Center of Pierre v. Hughes County) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Mary's Healthcare Center of Pierre v. Hughes County, 537 N.W.2d 366, 1995 S.D. LEXIS 111, 1995 WL 511613 (S.D. 1995).

Opinions

KONENKAMP, Justice.

St. Mary’s Healthcare Center (Hospital) appeals two trial court judgments denying two separate claims against Hughes County, South Dakota (County) for reimbursement [367]*367for services provided to indigent patients. We affirm.

FACTS

SDCL Ch. 28-13, entitled County Poor Relief, outlines statutory procedures hospitals must follow to obtain reimbursement from counties for medical care and services provided to indigent county residents. Within that statutory scheme, SDCL 28-13-34.1 (the “statute”) provides:

If hospitalization is furnished to an indigent person, the county is not liable for the cost of such hospitalization unless, within fifteen days in the case of an emergency admission or within seven days in the case of a nonemergency admission, notice of such hospitalization is mailed to the auditor of the county. The notice shall contain:
(1) The name and last known address of the patient or the patient’s guardian;
(2) The name and address of the responsible party, if known;
(3) The name of the attending physician;
(4) The nature and degree of severity of the illness;
(5) The anticipated diagnostic or therapeutic services required;
(6) The location the services are to be provided;
(7) The estimated cost of the services; and
(8) A statement that the hospital has inquired of the patient or the responsible party, if known, as to whether the patient is a veteran or is potentially eligible for Indian health service benefits and the information received in response to such inquiry.

(Emphasis added.)

Loretta Runge, a resident of the County, was admitted to the Hospital on November 11, 1992. Pursuant to SDCL 28-13-34.1, notice of her hospitalization was sent to the County Auditor on November 18, 1992. The notice listed the nature and severity of Ms. Runge’s illness as a “possible bowel obstruction.” The notice also indicated the anticipated diagnostic or therapeutic services were “lab, tests, medications, possible surgery.” The estimated cost for these services was $12,000.

Similarly, Dorothy Dean, also a resident of the County, was admitted to the Hospital on November 20, 1992. The statutorily required notice of her hospitalization was sent to the County Auditor on November 23,1992. This notice regarding Ms. Dean also listed the nature and severity of her illness as a “bowel obstruction.” As with Ms. Runge, the notice indicated the anticipated diagnostic or therapeutic services for Ms. Dean were “lab, tests, medications, possible surgery,” with estimated costs of $10,000.00.

Hospital subsequently sought reimbursement from County for $32,490.81 for medical services provided to Ms. Runge and $24,-661.31 for medical services provided to Ms. Dean. County denied both claims for noncompliance with the notice provisions of SDCL 28-13-34.1 and Hospital sought relief in circuit court. Due to the identical issues involved, the Runge and Dean cases were consolidated and tried on August 24, 1994. The trial court entered its findings of fact, conclusions of law and judgment in both cases on September 7, 1994. The trial court determined that Hospital’s notices failed to strictly comply with the requirements of the statute because neither notice described the degree of severity of the illness nor satisfied the requirements for an estimate of costs. Both of Hospital’s claims for reimbursement were denied. Hospital appeals.

ISSUE

DID HOSPITAL’S NOTICES COMPLY WITH THE NOTICE OF HOSPITALIZATION REQUIREMENTS OF SDCL 28-13-34.1?

The analysis of this case is controlled by our decision in Appeal of Presentation Sisters, Inc., 471 N.W.2d 169 (S.D.1991). In Presentation Sisters, we held that strict compliance with the notice requirements of SDCL 28-13-34.1 is mandatory if a hospital is to recover any of its costs under SDCL Ch. 28-13, rejecting the hospital’s contention that substantial compliance was all that is required. Since every county has a statutory duty to provide hospitalization, medical care, and treatment for poor persons, and “[sjince the expenditure of public funds is involved [368]*368this court has strictly construed the statutes dealing -with the reimbursement of expenses for indigent emergency care.” Id. at 174 (citations omitted).

[W]e have made it clear that while a hospital need not provide extensive information beyond the statute [i.e., SDCL 28-13-34.1], it is required to provide the information required by the notice statute. This interpretation is consistent with this court’s strict construction of the poor relief statutes, the general rule that a statutorily prescribed method for the form of notice must be strictly complied with, and the rule that use of the word “shall” in a statute indicates a mandatory action.

Id. at 175 (citations omitted; brackets and emphasis added). Thus, in order for a hospital to obtain reimbursement from a county for services provided to an indigent resident, strict adherence to the notice requirements of SDCL 28-13-34.1 is required.

In Presentation Sisters, we reviewed the notices provided by two hospitals regarding a patient. The first of those notices listed the nature and degree of severity of illness as “cerebral vascular accident,” did not list anything under anticipated diagnostic or therapeutic services, and estimated the cost of services to be $7,500. The second notice listed the nature and degree of severity of illness as “L CVA rehab,” the anticipated services as simply “medical,” and estimated the cost at $5,000. We held that both notices failed to strictly comply with SDCL 28-13-34.1, and observed that the first notice “made no mention at all of the anticipated diagnostic or therapeutic services [the patient] required.... Its notice also did not advise [the county] of the specific nature of [the patient’s] illness and the cost estimate given was one-fourth the actual cost.” Id. at 175.

In holding the hospital’s notices were inadequate, we did not focus solely on the failure of the hospital in that ease to list anything on one of the blanks; we looked to the substantive nature of the information provided to the county.

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Related

In Re the Appeal of Presentation Sisters, Inc.
471 N.W.2d 169 (South Dakota Supreme Court, 1991)
Sioux Valley Hospital Ass'n v. Tripp County
404 N.W.2d 519 (South Dakota Supreme Court, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
537 N.W.2d 366, 1995 S.D. LEXIS 111, 1995 WL 511613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-marys-healthcare-center-of-pierre-v-hughes-county-sd-1995.