Vicksburg Healthcare, LLC v. State Ex Rel. Department of Health & Hospitals

63 So. 3d 205, 2010 La.App. 1 Cir. 1248, 2011 La. App. LEXIS 356, 2011 WL 1206492, 10 La.App. 1 Cir. 1248
CourtLouisiana Court of Appeal
DecidedMarch 25, 2011
Docket2010 CA 1248
StatusPublished
Cited by5 cases

This text of 63 So. 3d 205 (Vicksburg Healthcare, LLC v. State Ex Rel. Department of Health & Hospitals) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vicksburg Healthcare, LLC v. State Ex Rel. Department of Health & Hospitals, 63 So. 3d 205, 2010 La.App. 1 Cir. 1248, 2011 La. App. LEXIS 356, 2011 WL 1206492, 10 La.App. 1 Cir. 1248 (La. Ct. App. 2011).

Opinion

KUHN, J.

1 gDefendants-appellants, State of Louisiana through the Department of Health and Hospitals and its secretary Alan Levine (DHH or the department), appeal the trial court’s judgment, granting summary judgment and declaring a reimbursement methodology promulgated by DHH (which appears as rules in various publications of the Louisiana Register) unconstitutional, as well as finding that all DHH’s actions taken pursuant to that reimbursement methodology discriminated in the Medicaid reimbursement payments made to plaintiff-appellee, Vicksburg Healthcare, LLC d/b/a River Region Healthcare System (River Region). Find *207 ing the record supports a violation of the Commerce Clause of the U.S. Constitution and, as such, a violation of La. R.S. 40:1300.144(A)(S)(b), we amend the judgment and, as amended, affirm. 1

BACKGROUND

River Region, who operates a hospital in Vicksburg, Mississippi, and is organized under the laws of the State of Mississippi, filed a petition seeking declaratory relief and damages against DHH, averring that the reimbursement rate DHH was paying to River Region for inpatient healthcare services it administered to Louisiana Medicaid patients was significantly less than the amount DHH reimburses to like instate providers. River Region filed a motion for partial summary judgment on the issue of the legality of the reimbursement methodology. After a hearing, the trial court granted River Region’s motion, declaring the I..¡reimbursement methodology unconstitutional and finding that DHH’s actions applying the methodology discriminated against River Region. DHH appealed the trial court’s judgment, signed in conformity with its ruling. 2

SUMMARY JUDGMENT

Summary judgments are reviewed on appeal de novo, with the appellate court using the same criteria that govern the trial court’s determination of whether summary judgment is appropriate. Smith v. Our Lady of the Lake Hosp., Inc., 932512, p. 26 (La.7/5/94), 639 So.2d 730, 750. The motion should be granted only if the pleadings, depositions, answers to interrogatories, and admissions on file, together with any affidavits, show that there is no genuine issue as to material fact and that mover is entitled to judgment as a matter of law. La. C.C.P. art. 966(B).

In light of the undisputed facts, on appeal, the questions presented for our determination are purely legal ones, rather than factual ones, and therefore particularly appropriate for determination by summary judgment “as a matter of law.” See La. C.C.P. art. 966(C)(1); Hays v. Louisiana State Bd. of Elementary and Secondary Educ., 2009-1386, p. 4 (La.App. 1st Cir.6/11/10), 39 So.3d 818, 820, writ denied, 2010-1640 (La.10/8/10), 46 So.3d 1272.

DISCUSSION

Medicaid is a joint federal-state program, which furnishes medical assistance on behalf of families with dependent children and other qualifying | individuals, see 42 U.S.C.A. § 1396, in which Louisiana participates. 3 According to La. R.S. 40:1300.144(A)(3)(a), which is part of the Louisiana Rural Hospital Preservation Act 4 (RHPA):

With respect to reimbursement for services furnished in another state, the department shall insure that reimbursement for such services shall be the lesser of the payment for such services by *208 the state wherein such hospital is located or the department’s payment made to like in-state providers. The department shall provide coverage for such services to the same extent that it would pay for semces furnished within the boundaries of this state, only if any of the following conditions is met:
(i) Medical services are needed because of a medical emergency.
(ii) Medical services are needed and the recipient’s health would be endangered if he were required to travel to his state or residence.
(iii) The state determines, on the basis of medical advice, that the needed medical services are necessary supplementary resources, and more readily available in the other state.
(iv) It is general practice for recipients in a particular locality to use medical resources in another state. (Emphasis added.)

Cf 42 C.F.R. § 431.52(b).

By La. Acts 1999, No. 1068, § 1, the Louisiana legislature, among other things, amended and reenacted La. R.S. 40:1300.144(A)(3)(b). These relevant provisions state:

The department shall adopt rules and regulations in accordance with the Administrative Procedure Act that provide the following ...
In the event federal requirements for the state plan for medical assistance permit the department to impose further restrictions on payment for and coverage of medical services to Louisiana Medicaid patients rendered by out-of-state providers, the department shall promulgate regulations restricting payment for and coverage of such | ¿services to the fullest extent pemiitted by law. Such restrictions shall include lowering the rate of reimbursement provided for services rendered to out-of-state hospitals to the payment for such semces by the state wherein such hospital is located, the department’s payment made to like in-state providers, or the average rate paid to Louisiana rural hospitals located in the state, whichever is the least. (Emphasis added.)

In an attempt to conform to the directive stated in La. R.S. 40:1300.144(A)(3)(b), DHH adopted a rule (the DHH Rule), 5 which created a classification of out-of-state, “border” hospitals. 6 As it appears in its final enactment, the DHH Rule states:

Out-of-state hospitals that provided at least 500 inpatient hospital days in State Fiscal Year 1999 and are located in border cities (cities located within a 50 mile trade area of the Louisiana state border) will continue to be reimbursed at the lesser of each hospital’s actual cost per *209 day (based on the 1998 filed cost report) or the Medicaid per diem rate of the state wherein the services are provided. This reimbursement methodology is applicable for all Louisiana Medicaid recipients who receive inpatient services in an out-of-state hospital located in a border city, including those recipients up to the age of 21.

The following facts are undisputed. River Region was enrolled in the Louisiana Medicaid program from March 8, 2000 until November 30, 2008, when it withdrew its participation in the voluntary administration of healthcare services to Louisiana Medicaid patients.

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63 So. 3d 205, 2010 La.App. 1 Cir. 1248, 2011 La. App. LEXIS 356, 2011 WL 1206492, 10 La.App. 1 Cir. 1248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vicksburg-healthcare-llc-v-state-ex-rel-department-of-health-hospitals-lactapp-2011.