17-003887CON North Florida Regional Medical Center, Inc. vs. Agency For Health Care Administration
 Status: Closed
Settled and/or Dismissed prior to entry of RO/FO on Monday, August 21, 2017.


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1SHANDS TEACHING HOSPITAL AND

5CLINICS, INC., d/b/a UF HEALTH

10SHANDS REHAB HOSPITAL,

13Petitioner, DOAH CASE NO.: 17-3902CON

18AHCA CASE NO.: 2017007463

22v. CON NO.: 10480

26STATE OF FLORIDA, AGENCY FOR

31HEALTH CARE ADMINISTRATION,

34Respondent.

35I

36FINAL ORDER

38THIS CAUSE is before the State of Florida, Agency for Health Care Administration ("the

53Agency") concerning the approval of Shands Teaching Hospital And Clinics, Inc., d/b/a UF Health

68Shands Rehab Hospital ("UF Health") Certificate of Need ("CON") Application No. 10480 to

85establish a 40-bed replacement comprehensive medical rehabilitation ("CMR") hospital in District

983, Alachua County. The Agency being fully advised in the premises finds as follows:

1121. The Agency approved UF Health's CON Application No. 10480 to establish a 40-

126bed replacement comprehensive medical rehabilitation hospital in District 3, Alachua County.

1372. UF Health's CON Application No. 10480 was reviewed at the same time as other

152applications seeking to establish new CMR units at existing hospitals. Marion Community

164Hospital, Inc. d/b/a West Marion Community Hospital and Ocala Regional Medical Center

176("Marion Community") filed CON No. 10477 to establish a 30-bed CMR unit. Munroe HMA

192Hospital, LLC d/b/a Timberidge Hospital ("Munroe") filed CON No. 10478 to establish a 16-bed

208CMR unit and CON No. 10478P, a partial request for a 10-bed CMR unit. North Florida Regional

225Medical Center, Inc. d/b/a North Florida Regional Medical Center ("North Florida Regional") filed

240CON No. 10479 to establish a 20-bed CMR unit.

2493. The Agency denied CON Nos. 10477, 10478, 1 0478P and 10479.

2614. On June 23, 2017, Munroe filed a petition challenging the Agency's approval of

275UF Health's Application, and challenging the denial of its CON Application No. 10478 and

28910478P.

2905. On June 27, 2017, North Florida Regional filed a petition challenging the Agency's

304approval of UF Health's CON Application No. 10480 and challenging the denial of its CON

319Application No. 10479.

3226. On June 27, 2017, Marion Community filed a petition challenging the Agency's

335approval of UF Health's CON Application No. 10480, and challenging the denial of its CON

350Application No. 10477.

3537. UF Health filed a Petition to challenge any and all other co-batched applications,

367pursuant to Rule 59C-1.012, Florida Administrative Code. This petition filed by UF Health seeks

381that the Division of Administrative Hearings uphold the Agency's preliminary approval of UF

394Health's CON Application No. 10480, and uphold the denials of CON Application No. 10477, No.

40910478, No. 10478P and No. 10479.

4158. The Agency assigned the following CON numbers to applications at issue in this

429proceeding and rendered decision with regard to the beds sought as follows:

441CON #10480 Applicant UF Health Amount of Beds 40 Approved

451CON #10477 Applicant Ocala Regional Amount ofBeds 30 Denied

460CON #10478 Applicant Munroe Amount of Beds 16 Denied

469CON #10479 Applicant North Florida Regional Amount of Beds 20 Denied

4809. In Volume 43, Number 13, of the Florida Administrative Register, dated January

49320, 2017, the Agency announced a need for zero (0) additional comprehensive medical

506rehabilitation beds in District 3, which consists of Alachua, Bradford, Citrus, Columbia, Dixie,

519Gilchrist Hamilton, Hernando, Lafayette, Lake, Levy, Marion, Putnam, Sumter, Suwannee and

530Union counties. See Rule 59C-1.039(5)(a)- (c), Fla. Admin. Code.

53910. UF Health filed CON Application No. 10480 to establish a replacement 40-bed

552replacement comprehensive medical rehabilitation hospital. UF Health did not seek to add any

565CMR beds through its application. UF Health's proposed replacement comprehensive medical

576rehabilitation hospital does not increase the number of comprehensive medical rehabilitation beds

588in District 3.

59111. Each of the denied applicants filed applications to establish new comprehensive

603medical rehabilitation beds that would result in an increase in the number of comprehensive

617medical rehabilitation beds in District 3. Each argued that "special circumstances" justified the

630approval of their respective proposals, despite the absence of any predicted need, using the

644Agency's well-established methodology. See Fla. Admin. CodeR. 59C-1.039(3)(d), (5)(e).

65312. On July 3, 2017, the Agency published notice of the litigation initiated by the

668denied applicants. See Fla. Admin. Reg., Vol. 43, No. 128 (July 3, 2017). Pursuant to Rule 59C-

6851.012(2)(a), Florida Administrative Code, the Agency's notice invited approved applicants, like

696UF Health, to file a petition in order to place competing applicants' denied applications at issue.

712Rule 59C-1.012(2)(a) provides a 1 0-day deadline to file any such petition.

72413. The petitions filed by the denied applicants requested the denial of UF Health's

738preliminarily approved CON Application No. 10480.

74414. The petitions were forwarded to the Division of Administrative Hearings and later

757consolidated for hearing.

76015. On August 18, 2017, the following parties filed the following pleadings: North

773Florida Regional Medical Center, Inc., filed a Notice of Voluntary Dismissal; Munroe Regional

786Medical Center, filed a Notice of Voluntary Dismissal; Marion Community Hospital, Inc., d/b/a

799West Marion Community Hospital; and Ocala Regional Medical Center, filed a Notice of

812Voluntary Dismissal.

81416. As a result of the filing of each respective Notice of Voluntary Dismissal there is

830not a challenge pending as to the preliminarily approved UF Health's Certificate ofNeed ("CON")

846Application No. 10480 to establish a 40-bed replacement comprehensive rehabilitation hospital in

858District 3, Alachua County. In addition, the challenging parties have dismissed their requests for

872approval of a certificate of need program.

879It is therefore ORDERED:

8831. The Agency's approval of UF Health's CON No. 10480 to establish a 40-bed

897replacement comprehensive medical rehabilitation hospital in District 3, Alachua County, is

908UPHELD and CON Application No. 10480 shall be issued to UF Health.

9202. The Agency's denials of CON No. 10477, CON No. 10478 and CON No. 10479

935are UPHELD.

937ORDERED in Tallahassee, Florida, on this __fl_ day of '2017.

947f1"r: Justin . Senior, Secreta

953Agency For Health Care

957NOTICE OF RIGHT TO JUDICIAL REVIEW

963A party who is adversely affected by this Final Order is entitled to judicial review, which shall be

981instituted by filing the original Notice of Appeal with the Agency Clerk of AHCA, and a copy

998along with the filing fee prescribed by law with the District Court of Appeal in the appellate district

1016where the Agency maintains its headquarters or where a party resides. Review of proceedings

1030shall be conducted in accordance with the Florida appellate rules. The Notice of Appeal must be

1046filed within 30 days of the rendition of the order to be reviewed.

1059CERTIFICATE OF SERVICE

1062I HEREBY CERTIFY that a true and correct copy of the foregoing Final Order has been

1078furnished by the method designated to the persons named below on this z'h;of

,10922017.

1093Richard J. Shoop, Agenc

1097Agency for Health Care Administration

11022727 Mahan Drive, Mail Stop #3

1108Tallahassee, Florida 32308

1111(850) 412-3630

1113R. Bruce McKibben

1116Administrative Law Judge

1119Division of Administrative Hearings

1123(Electronic Filing)

1125Stephen A. Ecenia, Esquire

1129Craig D. Miller, Esquire

1133J. Stephen Menton, Esquire

1137Tana Storey, Esquire

1140Rutledge Ecenia, P .A.

1144119 South Monroe Street, Suite 202

1150Tallahassee, Florida 32301

1153steve@rutledge-ecenia.com

1154cmiller@rutledge-ecenia.com

1155smenton@rutledge-ecenia.com

1156tana@rutledge-ecenia.com

1157roxanne@rutledge-ecenia.com

1158vicki@rutledge-ecenia.com

1159Attorneys for North Florida Regional Medical Center, Inc. and West Marion Community

1171Hospital and Ocala Regional Medical Center

1177(Electronic Mail)

1179Geoffrey D. Smith, Esquire

1183Susan C. Smith, Esquire

1187Sabrina B. Dieguez, Esquire

1191Smith & Associates

11943301 Thomasville Road, Suite 201

1199Tallahassee, Florida 32308

1202geoff@smithlawtlh.com

1203susan@smithlawtlh.com

1204sabrina@smithlawtlh.com

1205katherine@smithlawtlh.com

1206dianne@smithlawtlh.com

1207Attorneys for Munroe Regional Medical Center

1213(Electronic Mail)

1215Seann M. Frazier, Esquire

1219Marc Ito, Esquire

1222Suite 750,215 South Monroe Street,

1228Tallahassee, Florida 32301

1231sfrazi er@phrd. com

1234mito@phrd.com

1235twd@phrd.com

1236Attorneys for UF Health Shands Rehab Hospital

1243(Electronic Mail)

1245Jon a than L. Rue

1250Suite 3600, 303 Peachtree Street Northeast

1256Atlanta, GA 30308

1259jrue@phrd.com

1260bmurphy@phrd.com

1261Attorney for UF Health Shands Rehab Hospital

1268(Electronic Mail)

1270Richard Joseph Saliba, Senior Attorney

1275Lindsey L. Miller-Hailey, Assistant General Counsel

1281Office of the General Counsel

1286Agency for Health Care Administration

1291(Electronic Mail)

1293JaniceK. Mills, Government Analyst II

1298Facilities Intake Unit

1301Agency for Health Care Administration

1306(Electronic Mail)

1308Marisol M. Fitch, Unit Manager

1313Certificate of Need Unit

1317Agency for Health Care Administration

1322(Electronic Mail)

1324Jack Plagge, Unit Manager

1328Hospital and Outpatient Services Unit

1333Agency for Health Care Administration

1338(Electronic Mail)

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 09/22/2017
Proceedings: Agency Final Order filed.
PDF:
Date: 09/20/2017
Proceedings: Agency Final Order
PDF:
Date: 08/21/2017
Proceedings: Order Closing Files and Relinquishing Jurisdiction. CASE CLOSED.
PDF:
Date: 08/18/2017
Proceedings: Joint Motion to Sever and Remand for Issuance of Shands Teaching Hospital and Clinic's, INC.'s CON No. 10480 filed.
PDF:
Date: 08/18/2017
Proceedings: Notice of Voluntary Dismissal filed.
PDF:
Date: 08/18/2017
Proceedings: Notice of Voluntary Dismissal filed.
PDF:
Date: 08/18/2017
Proceedings: Munroe Regional Medical Center's Notice of Voluntary Dismissal filed.
PDF:
Date: 08/14/2017
Proceedings: Notice of Appearance (J. Menton) filed.
PDF:
Date: 08/14/2017
Proceedings: Munroe Regional's Notice of Service of Answers to UF Health's First Interrogatories filed.
PDF:
Date: 08/14/2017
Proceedings: Munroe Regional's Response to UF Health's Request for Production filed.
PDF:
Date: 08/14/2017
Proceedings: Notice of Appearance (Geoffrey Smith) filed.
PDF:
Date: 08/09/2017
Proceedings: The Agency for Health Care Administration's Preliminary and Final Witness List filed.
PDF:
Date: 08/09/2017
Proceedings: Notice of Appearance (Kevin Marker) filed.
PDF:
Date: 08/09/2017
Proceedings: Notice of Appearance (Sabrina Dieguez) filed.
PDF:
Date: 08/07/2017
Proceedings: Notice of Hearing (hearing set for September 5 through 8, October 9 through 13, 24 through 27 and October 30, 2017; 9:00 a.m.; Tallahassee, FL).
PDF:
Date: 07/31/2017
Proceedings: Order of Consolidation (DOAH Case Nos. 17-3887CON, 17-3888CON, 17-3889CON, 17-3902CON).
Date: 07/28/2017
Proceedings: CASE STATUS: Pre-Hearing Conference Held.
PDF:
Date: 07/28/2017
Proceedings: Notice of Telephonic Status Conference (status conference set for July 28, 2017; 11:00 a.m.).
PDF:
Date: 07/26/2017
Proceedings: Joint Response to Initial Order and Request to Schedule a Status Conference filed.
PDF:
Date: 07/25/2017
Proceedings: Order Granting Extension of Time.
PDF:
Date: 07/25/2017
Proceedings: Notice of Appearance (Tana Storey) filed.
PDF:
Date: 07/24/2017
Proceedings: Motion for Extension of Time to Respond to Initial Order filed.
PDF:
Date: 07/12/2017
Proceedings: Initial Order.
PDF:
Date: 07/10/2017
Proceedings: Petition for Formal Administrative Proceeding filed.
PDF:
Date: 07/10/2017
Proceedings: Notice (of Agency referral) filed.

Case Information

Judge:
R. BRUCE MCKIBBEN
Date Filed:
07/10/2017
Date Assignment:
07/12/2017
Last Docket Entry:
09/22/2017
Location:
Tallahassee, Florida
District:
Northern
Agency:
Other
Suffix:
CON
 

Counsels

Related Florida Rule(s) (2):