Steen v. North Dakota Department of Human Services

1997 ND 52, 562 N.W.2d 83, 1997 N.D. LEXIS 41, 1997 WL 145072
CourtNorth Dakota Supreme Court
DecidedApril 1, 1997
DocketCivil 960128
StatusPublished
Cited by12 cases

This text of 1997 ND 52 (Steen v. North Dakota Department of Human Services) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steen v. North Dakota Department of Human Services, 1997 ND 52, 562 N.W.2d 83, 1997 N.D. LEXIS 41, 1997 WL 145072 (N.D. 1997).

Opinion

*85 MAKING, Justice.

[¶ 1] Linda Steen appeals from the March 12, 1996, judgment of the Cass County District Court upholding the decision of the Department of Human Services terminating her Medicaid Provider status for five years. We affirm the Department’s decision and that of the District Court.

[¶2] On February 16, 1990, Linda Steen (Steen) signed an agreement with the North Dakota Department of Human Services (DHS) to become a Medicaid Service Provider. This allowed Steen to perform personal care services for clients in their homes and for Steen to receive payment through the Medical Assistance program. Steen became a Provider on March 6,1990.

[¶ 3] Steen received a letter from DHS dated October 27, 1993, which informed her DHS was investigating her billing practices, and that she would not be authorized to take on any new clients or additional hours until the investigation was completed. Steen later received a letter from DHS dated July 7, 1994, informing her the investigation had concluded. The letter stated, “[t]he conditions imposed by letter of October 27, 1993 are removed. The restriction on no new clients or hours no longer applies.” Accompanying this letter was a Notice of Provider Sanction. In that Notice, Steen was advised all of her provider records must be contemporaneously handwritten at the end of each work session and she was to mail her “completed turnaround document AND a copy of provider logs/records per client” to the agency through January 31, 1996 (emphasis in original). Steen wrote to DeNae Kautz-mann, Appeals Supervisor at DHS, on July 15, 1994, requesting an appeal of the July 7 Notice of Provider Sanction. On August 18, 1994, Kautzmann sent Steen an acknowledgment of her appeal, and stated the sanction addressed recordkeeping. Steen replied by letter dated August 23, 1994, requesting an appeal of “the decision to limit [her] authorized hours.” Kautzmann responded on August 29,1994, by letter, informing Steen that the restriction of hours no longer applied. Kautzmann further asked Steen, “do you still wish to continue with the appeal sanction relating to record keeping?” On September 7, 1994, Steen and Kautzmann had a telephone conversation, the content of which is disputed. Subsequent to that conversation, DHS sent Steen a Notice of Dismissal of Appeal, “based on [Steen’s] conversation with DeNae H.M. Kautzmann ... requesting a withdrawal of [her] appeal.”

[¶ 4] On September 16, 1994, Raymond Feist, DHS Investigator, served a subpoena on Steen demanding all records of Steen’s client care services including Medicaid Waiver clients, private pay clients, and clients obtained through another agency. Steen did not produce those records. On October 10, 1994, David Zentner, Director of Medical Services for DHS sent Steen a letter advising her that her provider status would be terminated on October 20, 1994, for no less than 5 years because of her failure to comply with the sanctions set forth in the July 7, 1994, Notice of Provider Sanction.

[¶5] Steen requested an administrative hearing to appeal her termination. On January 13,1995, a hearing was held before Temporary Administrative Law Judge Joy Wez-elman, who issued her recommended findings of fact, conclusions of law, and order on August 9, 1995. Wezelman recommended that the Department’s decision to terminate Steen’s provider status for five years be reversed and a less severe sanction be imposed. On October 12,1995, Henry Wessman, Executive Director of DHS, issued his conclusive findings of fact, conclusions of law, and order affirming Steen’s termination of provider status for at least five years. Steen appealed this Order to Cass County District Court. Based on the parties’ briefs and oral argument, the District Court issued an Order for Judgment on March 8,1996, affirming DHS’s sanction terminating Steen’s provider status. Steen appeals from that judgment to this court.

[¶ 6] Steen contends the findings of fact issued by the Director were not supported by a preponderance of the evidence; the Department abused its discretion by terminating her provider status; and she was denied procedural due process rights. We disagree.

[¶ 7] ‘When a decision of an administrative agency is appealed from the district *86 court to this Court, we review the decision of the agency, not the decision of the district court.” Walton v. N.D. Dept. of Human Services, 552 N.W.2d 336, 338, (N.D.1996) (citation omitted).

[¶ 8] N.D.C.C. § 28-32-19 governs our review of agency appeals. This court must affirm the agency’s decision unless we find one or more of the following:

1. The order is not in accordance with the law,
2. The order is in violation of the constitutional rights of the appellant,
3. Provisions of this chapter have not been complied with in the proceedings before the agency,
4. The rules or procedure of the agency have not afforded the appellant a fair hearing,
5. The findings of fact made by the agency are not supported by a preponderance of the evidence, and,
6. The conclusions of law and order of the agency are not supported by its findings of fact.

N.D.C.C. § 28-32-19.

[¶ 9] In an appeal from an administrative agency decision, the question is not whether we would have weighed the evidence differently and reached a different conclusion than the agency, but whether a reasoning mind could reasonably conclude the factual conclusions were supported by the evidence. Halseth v. N.D. Workers Comp. Bureau, 514 N.W.2d 371, 373 (N.D.1994). We note, although we affirm the agency’s decision on its merits, we are troubled by the procedural missteps in this case.

I

[¶ 10] In accordance with N.D.A.C. § 75-01-03-22(2), the Executive Director of DHS (the Director) rejected the hearing officer’s recommendations and issued the final order upholding Steen’s five year termination. When the director of an agency rejects the recommendations of the hearing officer in favor of a contrary decision, the findings, conclusions, and decision should be sufficient to explain the Director’s rationale for doing so. See, e.g., Carlson v. Job Service North Dakota, 548 N.W.2d 389 (N.D.1996); Schultz v. North Dakota Dept. of Hum. Serv., 372 N.W.2d 888 (N.D.1985). This court’s review of a decision rendered by an administrative agency does not include probing the decision maker’s mental process if a hearing was given as required by law. Carlson, 548 N.W.2d at 395, (citing Schultz v. North Dakota Dept. of Hum. Serv., 372 N.W.2d 888, 892 (N.D.1985)).

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Bluebook (online)
1997 ND 52, 562 N.W.2d 83, 1997 N.D. LEXIS 41, 1997 WL 145072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steen-v-north-dakota-department-of-human-services-nd-1997.