Warren Hosp. v. DEPT. OF HUMAN SERVICES

972 A.2d 449, 407 N.J. Super. 598
CourtNew Jersey Superior Court Appellate Division
DecidedJune 17, 2009
DocketDOCKET NO. A-1261-07T2
StatusPublished
Cited by2 cases

This text of 972 A.2d 449 (Warren Hosp. v. DEPT. OF HUMAN SERVICES) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren Hosp. v. DEPT. OF HUMAN SERVICES, 972 A.2d 449, 407 N.J. Super. 598 (N.J. Ct. App. 2009).

Opinion

972 A.2d 449 (2009)
407 N.J. Super. 598

WARREN HOSPITAL, Appellant,
v.
NEW JERSEY DEPARTMENT OF HUMAN SERVICES, DIVISION OF MENTAL HEALTH SERVICES, Respondent.

DOCKET NO. A-1261-07T2.

Superior Court of New Jersey, Appellate Division.

Submitted April 29, 2009.
Decided June 17, 2009.

*451 Reed Smith LLP, attorneys for appellant (Murray J. Klein, of counsel; Mr. Klein and David E. Dopf, Princeton, on the brief).

Anne Milgram, Attorney General, attorney for respondent (Melissa H. Raksa, Assistant Attorney General, of counsel; Rachana R. Munshi, Deputy Attorney General, on the brief).

Before Judges CUFF, C.L. MINIMAN and BAXTER.

The opinion of the court was delivered by

BAXTER, J.A.D.

Warren Hospital (Hospital) appeals from a September 28, 2007 final agency decision of the New Jersey Department of Human Services (DHS), Division of Mental Health Services (Division), which granted the request of the Family Guidance Center (the Guidance Center) for a psychiatric screening center location waiver, pursuant to N.J.A.C. 10:31-1.4, for July 1, 2005 through June 30, 2006.[1] The challenged location waiver enabled the Guidance Center, which provides mobile screening services and screening assessments at the two Warren County hospitals, to be designated as the screening center for Warren County even though the Guidance Center's own physical location was not a hospital.[2] Although the Guidance Center's own offices are located in an office building, it conducts all of its screening services and screening assessments at a hospital.

We conclude that the involuntary psychiatric commitment law, N.J.S.A. 30:4-27.1 *452 to -27.23, does not require the designated screening center that conducts psychiatric screening services to be located in a hospital, so long as the statutorily required psychiatric assessment is accomplished in a setting where screening center staff can explore whether involuntary psychiatric commitment is actually necessary. Despite the absence of a statutory requirement, DHS promulgated a regulation requiring screening services to be "physically located in a hospital," and be "either directly operated by or formally affiliated by written agreement with said hospital." N.J.A.C. 10:31-6.1(b). DHS also adopted a regulation, N.J.A.C. 10:31-1.4, allowing waiver of this location requirement.

On review, we conclude that the September 28, 2007 location waiver issued to the Guidance Center—which exempted the Guidance Center from complying with a Division regulation requiring screening centers to be located in a hospital—was the result of a comprehensive and thoughtful analysis of the relevant clinical and programmatic regulatory criteria, and is not violative of the involuntary commitment statutes. Because the statutes governing screening services do not obligate a designated screening center to be physically located in a hospital, issuance of the location waiver constituted valid agency action, and was neither arbitrary nor capricious. We affirm.[3]

I.

The Guidance Center, as a designated psychiatric screening center, has provided screening and mental health services to Warren County residents since 1988. Between 1988 and 2001, the Guidance Center operated outside of a hospital setting; however, in 2001, as a result of the Guidance Center's one-year affiliation agreement with the Hospital, the Guidance Center operated from a physical location in the Hospital, where the Guidance Center conducted all of its screening services in the emergency room. This arrangement lasted until 2004, when the relationship between the two began to deteriorate.

In particular, the Guidance Center objected to the following conditions that the Hospital imposed for the Guidance Center's continued physical location in the Hospital's emergency room: Guidance Center psychiatrists would be required to treat Guidance Center patients who were admitted to the hospital's inpatient psychiatric unit; Guidance Center psychiatrists would be responsible for accepting emergency room calls on a rotating basis in the same manner as the Hospital's staff psychiatrists; the Guidance Center's supervisor would be required to remain on site at all times, or be on site within forty-five minutes of a request from the Hospital, to supervise Guidance Center screeners twenty-four hours a day, seven days a week; and the Guidance Center would be required to provide "crisis companions and counseling services on site at the Hospital's emergency room."

The Guidance Center asserted that these conditions were not mandated by the screening center regulations, and would add between $404,000 and $494,000 to its operating costs each year. Apart from the issue of funding, the Guidance Center particularly objected to one condition: the Hospital reserved the right at its discretion to terminate the operating agreement with the Guidance Center if any of those conditions were not met or remedied within a thirty-day period.

*453 Pursuant to a request from the Warren County Mental Health Board (the Board), which sought to resolve the dispute between the Hospital and the Guidance Center, the Division, on December 13, 2004, conducted a "one-day focused site review" of the Guidance Center's performance of its screening services at the Hospital. The Division found no violations of the applicable screening center regulations. In fact, the Division commended the Guidance Center, noting that the review team was "particularly impressed with the screening assessments[.]" Nonetheless, the Hospital and Guidance Center were unable to reach an agreement. As a result, the Guidance Center left the Hospital in 2005, and the affiliation agreement was not renewed.

After the Guidance Center departed, the Warren County Prosecutor issued a July 6, 2005 memorandum entitled "Mental Health Screening Procedures" that was circulated to law enforcement authorities throughout the area, as well as to representatives of the Guidance Center, the Hospital, Hackettstown Hospital, the Division, and the Board. The memorandum directed police to contact the Guidance Center whenever, based on an officer's personal observation, a person was believed to be in need of involuntary commitment. The memorandum further directed police to contact the Guidance Center and the closet hospital emergency room, then transport such person to that emergency room, where the Guidance Center screener would be waiting or arrive soon after to conduct the screening assessment.

Once the Guidance Center terminated its relationship with the Hospital in the early part of 2005, it sought a location waiver, which was granted on August 3, 2005. The Hospital appealed the grant of that location waiver. On March 6, 2007, we reversed the Division's decision and remanded the location waiver to the Division, due to the Division's "failure to comply with the notice provision contained in [N.J.A.C. 10:31-1.4(b)]," and because, contrary to N.J.A.C. 10:31-1.4(a), the record was "devoid of any finding by the Division that it was `satisfied' that the grant of the facilities' waiver pose[d] no threat to the safety and welfare of the Warren County residents." Warren Hosp. v. N.J. Dep't of Human Servs., Div. of Mental Health Servs., No. A-0209-05, 2007 WL 654406 (App.Div. March 6, 2007) (slip op. at 10) (quoting N.J.A.C. 10:31-1.4(a)). We ordered the Division "to reconsider the [Guidance Center's] application for a waiver from the facilities' requirement on notice to all appropriate parties[.]" Id. at 11.

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