University Med. Center v. Dept. of Health

483 So. 2d 712
CourtDistrict Court of Appeal of Florida
DecidedFebruary 13, 1986
DocketBA-104
StatusPublished
Cited by8 cases

This text of 483 So. 2d 712 (University Med. Center v. Dept. of Health) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
University Med. Center v. Dept. of Health, 483 So. 2d 712 (Fla. Ct. App. 1986).

Opinion

483 So.2d 712 (1985)

UNIVERSITY MEDICAL CENTER, INC., Petitioner,
v.
DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, and Humhosco, Inc., D/B/a Humana Hospital Northside, Respondents.

No. BA-104.

District Court of Appeal of Florida, First District.

August 20, 1985.
On Motion for Rehearing February 13, 1986.

Robert A. Weiss, Tallahassee, and Greene, Greene, Falck & Coalson, P.A., Jacksonville, for petitioner.

Douglas L. Mannheimer, of Culpepper, Turner & Mannheimer, Tallahassee, for respondent Dept. of Health and Rehabilitative Services.

John H. French, Jr. and James C. Hauser, of Messer, Rhodes & Vickers, Tallahassee, for respondent Humhosco, Inc., d/b/a Humana Hospital Northside.

William B. Wiley, Gerald B. Sternstein and Charles A. Stampelos, of McFarlain, Bobo, Sternstein, Wiley & Cassedy, P.A., Tallahassee, for Psychiatric Hospitals of America, Inc., amicus curiae.

ZEHMER, Judge.

University Medical Center, Inc. (UMC), petitions for review of a nonfinal order of an administrative hearing officer denying UMC's motion to consolidate its certificate of need (CON) case with a pending CON case involving Humhosco, Inc., doing business as Humana Hospital Northside (Humana). We accept jurisdiction and affirm.

In June 1983, Humana and HCA Health Services of Florida (HCA) each submitted a CON application to construct a general acute care hospital in north Jacksonville. This filing placed them in an HRS batching *713 cycle for which applications were due by June 15, 1983. Fla. Admin. Code Rule 10-5.08(1). Both of these applications were denied by HRS in October 1983. Humana petitioned for a section 120.57, Florida Statutes (1983), administrative hearing, but HCA's case was voluntarily dismissed.

In November 1983, two batching cycles and five months after Humana's application, UMC applied for a CON to construct a 100-bed general acute care hospital in north Jacksonville. The application was denied by HRS in April 1984, and UMC requested a section 120.57 hearing. UMC also filed a motion to consolidate its administrative hearing with the hearing in Humana's case, which had not yet been held, alleging that the applications of Humana and UMC are mutually exclusive, and "involve essentially identical issues of fact and law." The hearing officer denied the motion to consolidate without explanation. UMC then sought review of this non-final agency action pursuant to article V, section 4B, Florida Constitution, section 120.68(1), Florida Statutes (as amended by chapter 84-173, section 4, Laws of Florida), and rule 9.100, Florida Rules of Appellate Procedure.

UMC contends that consolidation of its administrative proceedings with those of Humana is consistent with the legislative intent underlying the Health Facilities and Health Services Planning Act, section 381.493, et seq., Florida Statutes (1983), because the two applications involve essentially identical issues of fact and law and consolidation would promote the just, speedy, and inexpensive resolution of the proceedings. UMC argues that a de novo comparative hearing on pending, competing, and mutually exclusive applications is mandated by the due process considerations enunciated in Ashbacker Radio Corp. v. FCC, 326 U.S. 327, 66 S.Ct. 148, 90 L.Ed. 108 (1945), and decisions of Florida courts applying the Ashbacker doctrine to CON cases. Biomedical Applications of Clearwater, Inc. v. Dept. of Health & Rehabilitative Services, 370 So.2d 19 (Fla.2d DCA 1979); Biomedical Applications of Ocala, Inc. v. Dept. of Health & Rehabilitative Services, 374 So.2d 88 (Fla. 1st DCA 1979); and South Broward Hospital District v. Dept. of Health & Rehabilitative Services, 385 So.2d 1094 (Fla. 4th DCA 1980). UMC recognizes that HRS has established "batching cycles" to facilitate the orderly review of applications, but contends that the batching cycle rules relate solely to the HRS review process leading to HRS's preliminary determination on the application. Nothing in rule 10-5.08, according to UMC, precludes comparative consideration of competing applications at a de novo section 120.57 administrative hearing, even if such applications were filed in different batching cycles and not considered comparatively in HRS's preliminary review. Finally, UMC states that a de novo review of CON applications is required by McDonald v. Dept. of Banking & Finance, 346 So.2d 569 (Fla. 1st DCA 1977), and such review must take into consideration changed circumstances at the time of the hearing, including the fact that additional CON applications may have been filed.

HRS argues that the granting of consolidation to petitioner would allow it to obtain a comparative analysis of its application with Humana's and, in effect, place petitioner in the same batching cycle as Humana, in violation of rule 10-5.08(1), Florida Administrative Code. It states that the requirement of a de novo hearing at the administrative level does not override HRS's requirement that CON applications be given only comparative review with similar applications in the same batching cycle. HRS distinguishes the cases cited by petitioner on the ground that those cases deal with situations where the competing CON applicants had filed their applications at or near the same time. It points out that these prior cases were decided before adoption of its batching cycle rules and that, in fact, its rules were promulgated in response to those cases. HRS takes the position that if petitioner is allowed to prevail, HRS's attempt to establish orderly and efficient procedures for consideration of CON applications will be nullified. It contends that the United States Supreme Court in Ashbacker recognized that two *714 applications are not considered mutually exclusive if there is a batching system set up which provides that applications must be filed by a certain date in order to be comparatively reviewed. Additionally, it points out that the second district court in Biomedical Applications of Clearwater, Inc. v. Dept. of Health & Rehabilitative Services, 370 So.2d 19, 23 (Fla.2d DCA 1979), recognized that comparative review was required only for "timely filed applications."

Humana, as intervenor, argues that the issue of consolidation of administrative hearings is a matter reserved to the discretion of the hearing officer based on the particular facts and circumstances of each case. Fla.Adm.Code Rule 28-5.106. It urges that petitioner has not demonstrated that the hearing officer in this case abused his discretion by denying the motion to consolidate. Humana further points out that the construction of a statute or statutory scheme by the agency charged with its execution should be followed by the courts unless there are compelling indications that such construction is incorrect. Kimbrell v. Great American Insurance Co., 420 So.2d 1086 (Fla. 1982).

In reply to HRS's and Humana's arguments, UMC contends that HRS's application of the batching cycle system to administrative hearings does not further the interests of orderly and efficient administration of the CON program. It argues that consolidation of its case with Humana's would further HRS's interest in the official resolution of both applications since only one hearing would be necessary.

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483 So. 2d 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/university-med-center-v-dept-of-health-fladistctapp-1986.