VNA Hospice of Md. v. DEPT. OF HEALTH AND MENTAL HYGIENE

961 A.2d 557, 406 Md. 584, 2008 Md. LEXIS 625
CourtCourt of Appeals of Maryland
DecidedDecember 11, 2008
Docket105, September Term, 2007
StatusPublished
Cited by26 cases

This text of 961 A.2d 557 (VNA Hospice of Md. v. DEPT. OF HEALTH AND MENTAL HYGIENE) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VNA Hospice of Md. v. DEPT. OF HEALTH AND MENTAL HYGIENE, 961 A.2d 557, 406 Md. 584, 2008 Md. LEXIS 625 (Md. 2008).

Opinion

*588 John C. ELDRIDGE, J.,

Retired, Specially Assigned.

This is an action for judicial review of a final adjudicatory administrative decision by the Maryland Department of Health and Mental Hygiene. In that decision, the Department amended the petitioner VNA Hospice of Maryland’s hospice care license to exclude VNA from providing home-based hospice services in Carroll and Prince George’s Counties. The decision was based upon Maryland Code (2000, 2005 Repl. Vol.), § 19-906(c)(3) of the Health-General Article. 1 In deciding to rescind that part of VNA’s license relating to Carroll and Prince George’s Counties, the Department rejected VNA’s interpretation of § 19-906(c)(3) of the Health-General Article. The Department also rejected VNA’s alternative arguments that, if § 19-906(c)(3) precluded VNA from performing home-based hospice services in Carroll and Prince George’s Counties, the statute as applied to VNA was unconstitutional on several grounds.

The Circuit Court for Baltimore County reversed the administrative decision on state constitutional grounds. The Court of Special Appeals, however, rejected VNA’s constitutional arguments, reversed the Circuit Court’s judgment, and directed the Circuit Court to affirm the Department’s final decision. Dept. of Health v. VNA 176 Md.App. 475, 501-502, 933 A.2d 512, 527 (2007).

This Court granted VNA’s petition for a writ of certiorari which presented numerous constitutional questions. VNA Hospice v. Department of Health, 402 Md. 355, 936 A.2d 852 (2007). Although we recognize that some of VNA’s constitutional arguments are substantial, we shall not decide any of the constitutional issues. Instead, we shall vacate the decision of the Court of Special Appeals and direct an affirmance of the *589 Circuit Court’s judgment on the ground that the Department’s interpretation of the statutory provisions, and particularly § 19-906(c)(3), was not legally correct.

I.

VNA, before the Department’s action complained of here, was licensed to provide and had been providing home-based hospice services, to “dying individuals and their families,” 2 in Anne Arundel, Baltimore, Carroll, Cecil, Harford, Howard, and Prince George’s Counties, as well as Baltimore City. As a result of the Department’s final decision in this case, VNA could no longer provide home-based hospice services in Carroll and Prince George’s Counties unless it applied for and received a Certificate of Need (hereafter sometimes referred to as a “CON”).

Since 1982, hospice care programs have been included in Maryland’s health care planning statutory definition of “health care facility.” Maryland Code (2000, 2005 Repl. VoL), § 19-114(d)(1)(vii) of the Health-General Article. Also since 1983, new facility-based hospice care programs have been required to have a Certificate of Need and to meet licensing requirements. Many pre-existing hospice providers, although still having to meet the licensing requirements, were “grandfathered” with respect to the CON requirement because of an uncodified provision, in a 1987 statute, exempting existing programs. Ch. 670 of the Acts of 1987, § 2, stated

“[tjhat those hospice care programs in existence and delivering hospice care services before January 1, 1987, that request licensure between July 1, 1987, and July 1, 1988, shall not be required to obtain a certificate of need prior to licensure. However, those hospice care programs seeking exemption from formal submission of a certificate of need for a hospice care program under this section shall meet the criteria established by the Maryland Health Resources *590 Planning Commission in consultation with interested groups, including the Hospice Network of Maryland, Inc., for determining whether a hospice care program was in existence and delivering hospice care services before January 1, 1987.” 3

As more requirements were subsequently added in order to obtain a CON for a hospice program, existing programs continued to benefit from grandfathering provisions. This history was described by the Maryland Health Care Commission, Division of Health Resources, in a report entitled An Analysis and Evaluation of Certificate of Need Regulation in Maryland, Working Paper: Hospice Services, at 23-24 (2000), as follows (footnotes omitted):

“Since the enactment of the statute creating the former Maryland Health Resources Planning Commission in 1982, hospice care programs (as well as home health agencies) have been included in the definition of ‘health care facility’ for purposes of coverage by CON review requirements. However, since most home health agencies and virtually all hospice programs existing at that time had been created by hospitals or nursing homes as a facility-based medical service, statutory language was added at several junctures over the next several years to clarify that any geographic expansion (beyond their current jurisdictions) by an existing hospice or home health agency required an additional CON. *591 Existing programs of both kinds rushed to be ‘grandfathered’ as these successive additions to Commission and licensing law established additional requirements.
“Since Medicare did not include hospice care as a covered service until the 1983 effective date of the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, followed by Medicaid’s adding the benefit in 1985, relatively few freestanding hospices existed at the time of the 1984 amendments to statute. The imposition of a separate State licensure requirement for hospice programs in 1987 was an indicator of the program’s growth, and the increasing interest of freestanding providers. This new law explicitly stated that, except for a program with a limited license, a person seeking licensure ‘shall have a certificate of need ... for the hospice program to be operated.’
“Uncodified language in the 1987 licensure statute provided that hospice care programs established without CON approval, ‘in existence and delivering hospice care services before January 1, 1987’ that sought State licensure between July 1, 1987 and July 1, 1988 would ‘not be required to obtain a Certificate of Need prior to licensure.’ ”

The report continued (id. at 24):

“Since hospice programs that existed before either the CON or the licensure requirement had no geographic limitation on their service area, once grandfathered, this service area was determined to be statewide. This was reinforced by the argument that since nearly all of these pre-existing hospice programs had been established as medical services within hospitals or nursing homes, which may serve a resident of any Maryland jurisdiction (and in the case of facilities with specialized services, often draw patients from across the state), the determination that their hospice programs had similar geographic scope.

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Bluebook (online)
961 A.2d 557, 406 Md. 584, 2008 Md. LEXIS 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vna-hospice-of-md-v-dept-of-health-and-mental-hygiene-md-2008.