Total Care, Inc. v. Department of Human Resources

393 S.E.2d 338, 99 N.C. App. 517, 1990 N.C. App. LEXIS 523
Court of Appeals of North Carolina·Decided July 17, 1990·No. 8926SC245·Published·Cited by 5 cases

Opinion

*518 PARKER, Judge.

The sole issue presented by defendant Department of Human Resources’ appeal is whether the trial court erred in concluding that a home health agency seeking to open branch offices in counties where it already provides health services to patients is not required to obtain a Certificate of Need (CON) pursuant to G.S. 13ÍE-178 before opening such branch offices.

Plaintiff, Total Care, is a private corporation providing home health care. Total Care’s principal office is in Charlotte, North Carolina. Total Care also has offices in Salisbury, Statesville, and Gastonia, North Carolina and provides home health care services in the following counties: Alexander, Anson, Cabarrus, Catawba, Cleveland, Davidson, Davie, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly, Union, and Wilkes. Plaintiff seeks to open additional offices within its current service area.

Plaintiff requested defendant, the North Carolina Department of Human Resources, to issue a declaratory ruling as to whether Total Care was required to obtain a CON before opening additional offices in its geographic service area. Defendant issued a ruling that Total Care was required to obtain a CON to open any additional offices. Plaintiff then filed a petition for judicial review and complaint for declaratory judgment pursuant to G.S. 150B-17 and G.S. 1-253. The trial court granted summary judgment for plaintiff, concluding that a CON is required, pursuant to the “new institutional health service” provision of the CON law, for a home health agency when a new health service agency or organization is to be developed, but not when an existing agency seeks merely to open new offices for the existing agency. Although the standard of review from a Department ruling is the whole record test, in the case before the Court, the facts are undisputed and the issue for resolution is one of law.

Initially, we note that from what appears of record defendant’s argument concerning the interrelationship of the Health Agency Licensure Act and the CON statutes was neither pled nor argued in the court below nor was it a basis of defendant’s ruling. Accordingly, we do not address this question raised for the first time on appeal.

North Carolina’s CON law was adopted because of the legislature’s concern:

*519 [t]hat the general welfare and protection of lives, health, and property of the people of this State require that new institutional health services to be offered within this State be subject to review and evaluation as to need, cost of service, accessibility to services, quality of care, feasibility, and other criteria as determined by provisions of this Article or by the North Carolina Department of Human Resources pursuant to provisions of this Article prior to such services being offered or developed in order that only appropriate and needed institutional health services are made available in the area to be served.

G.S. 131E-175(7). To this end the legislature designated the Department of Human Resources as the State Health Planning and Development Agency for the State of North Carolina and charged the Department with implementing the CON law, determining the need for health service facilities, and developing a State Health Plan (now known as the State Medical Facilities Plan). G.S. 131E-177. Under G.S. 131E-178(a), a CON is required prior to offering or developing a “new institutional health service.” In G.S. 131E-176, the definition section of the CON law, the term “new institutional health service” is defined to include “[t]he construction, development, or other establishment of a new health service facility.” G.S. 131E-176(16)(a). In the same definition section a “health service facility” is defined as:

a hospital; psychiatric facility; rehabilitation facility; long term care facility; kidney disease treatment center, including freestanding hemodialysis units; intermediate care facility for the mentally retarded; home health agency, chemical dependency treatment facility; and ambulatory surgical facility.

G.S. 131E-176(9b) (emphasis added). A “home health agency” is defined as “a private organization or public agency, whether owned or operated by one or more persons or legal entities, which furnishes or offers to furnish home health services.” G.S. 131E-176(12).

In his order reversing the Department’s declaratory ruling that in order to establish branch offices a home health agency is required to obtain a CON for such offices, the trial judge concluded that under the statutory definitions of the CON law the home health agency itself, and not the service that the agency provides, is the “health service facility” governed by section 131E-176 of the CON law.

*520 Where the language of a statute is clear and unambiguous the courts must give such language its plain and definite meaning. Utilities Comm. v. Edmisten, Atty. General, 291 N.C. 451, 465, 232 S.E.2d 184, 192 (1977). Although where an issue of statutory-construction arises the construction adopted by the agency charged with implementing the statute may be considered, such an issue only arises where an ambiguity exists. Watson Industries v. Shaw, Comr. of Revenue, 235 N.C. 203, 211, 69 S.E.2d 505, 511 (1952). Additionally, there is a presumption that the legislature “comprehended the import of the words it employed to express its intent.” State v. Baker, 229 N.C. 73, 77, 48 S.E.2d 61, 65 (1948), quoted in Housing Authority v. Farabee, 284 N.C. 242, 245, 200 S.E.2d 12, 15 (1973).

Applying these rules of statutory construction, we conclude that the legislature intended that only the home health care agency be subject to this provision of the CON law. The statute specifically defines “home health agency” as an “organization.” Normally, the fact that an organization has two offices does not transform it into two organizations. Although the nature of home health services is such that the patient is treated in the temporary or permanent residence used as the patient’s home, rather than at a clinic site such as a hospital or ambulatory surgery facility, if the legislature had intended to require a CON for each office used by the home health agency in providing home health services it could have specified this in the statute. The legislature did not so specify, and the term “home health agency” is unambiguous. Hence by defining a health service facility for purposes of home health care as the “home health agency” the legislature, in our view, intended to require a CON prior to the establishment of a new home health agency not merely to the opening of additional offices for administrative purposes.

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

Total Care, Inc. v. Department of Human Resources, 393 S.E.2d 338, 99 N.C. App. 517, 1990 N.C. App. LEXIS 523 (N.C. Ct. App. 1990).

393 S.E.2d 338 (Total Care, Inc. v. Department of Human Resources) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

PARKDALE AMERICA, LLC v. Hinton
684 S.E.2d 458 (Court of Appeals of North Carolina, 2009)
Wells v. Consolidated Judicial Retirement System
553 S.E.2d 877 (Supreme Court of North Carolina, 2001)