15-000190 Bhi, Llc, D/B/A Blountstown Health And Rehabilitation Center vs. Agency For Health Care Administration Status: Closed Recommended Order on Wednesday, March 11, 2015.

Summary: Petitioner failed to meet its burden of proof regarding its challenge to the Medicaid Examination Report.

STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

BHI, LLC d/b/a BLOUNTSTOWN

HEALTH AND REHABILITATION

CENTER ,

Petitioner , Case No . 1 5 - 0190

vs.

AGENCY FOR HEALTH CARE

ADMINISTRATION ,

Respondent .

/

RECOMMENDED ORDER OF DISMISSAL

Pursuant to notice, this case was heard on March 9, 2015 ,

in Tallahassee, Florida , before E. Gary Early, a designated

Administrative Law Judge of the Division of Administrative

Hearings.

APPEARANCES

For Petitioner: No ap pearance

For Respondent: Steven L. Perry , Esquire

Office of the Attorney General

The Capitol , P laza L evel 01

Tallahassee, Florida 32 399 - 1050

STATEMENT OF THE ISSUE

W hether Petitioner utilized the correct M edicaid per diem

rates at its facility for the 18 - month audit period identified

in the November 7, 2011 , Medicaid Examination Report .

PRELIMINARY STATEMENT

On May 8, 2012, the Agency for Health Care Administration

(Respondent) issued a Medicaid Examinati on Report to BHI, LLC

d/b/a Blountstown Health and Rehabilitation Center (Petitioner)

for the 18 - month audit period ending on October 31, 2004.

Petitioner was informed of its right to contest the results of

the audit, and a timely Petition for Formal Admi nistrative

Hearing was filed by Petitioner . The Petition was transmitted

to D ivision of Administrative Hearings and was assigned to the

undersigned.

The Initial Order was entered on January 13, 2015. On

January 20, 2015, a ÐResponse to Initial OrderÑ wa s filed by the

registered agent for Petitioner, in which the registered agent

acknowledged receipt of the pleadings in this case and , since

Petitioner had been administratively dissolved, indicated that

he had transmitted them to a manager of PetitionerÓs corporate

parent.

On January 26, 2015, the undersigned entered an Order to

Show Cause why the case should not be dismissed based on the

administrative dissolution of the corporate facility - owning

entities. The response filed by Respondent provided

sati sfactory grounds for the case to proceed , and the case was

set for hearing to commence on March 9, 2015.

On February 18, 2015, the registered agent filed a Notice

of Non - Representation and Request for Clarification. On

February 19, 2015, an Order on Re quest for C larification was

entered. The substance of the Order may be determined by

reference to the docket in this case .

Petitioner did not file or exchange a witness list, exhibit

list, or proposed exhibits, pursuant to the Order of Pre - Hearing

Instr uctions. Respondent timely filed and served its exhibit

list, along with an affidavit of a person familiar with the

records at issue.

The final hearing was convened at 9:00 a.m. on March 9,

2015, as noticed. No one appeared on behalf of Petitioner.

Co unsel for Respondent appeared. A court reporter was in

attendance, having been retained by Respondent. After

preliminary matters were disposed of, a 15 - minute recess was

granted to allow for an appearance by Petitioner. The final

hearing was reconvened at 9:20 a.m. , without an appearance by

Petitioner. RespondentÓs Exhibits 1 and 2, consisting of the

Medicaid Audit Report and a recent review thereof, were received

in evidence. The final hearing was thereafter adjourned.

Given the burden of proof as di s cussed herein, post - hearing

submittals were determined to be unnecessary.

References to statutes are to Florida Statutes (201 4 )

unless otherwise noted.

FINDINGS OF FACT

1 . By letter dated May 8, 2012, which included the

Medicaid Audit Report that is th e subject of this proceeding,

Respondent gave Petitioner notice of its Medicaid reimbursement

rate errors , subject to PetitionerÓs right to contest the

determinations of error and to demonstrate that its rates were

correct in an administrative hearing.

2 . A timely Petition for Formal Administrative Hearing

involving disputed issues of material fact was filed on behalf

of Petitioner.

3 . A fter filing the hearing request, Pe titioner took no

further action to contest RespondentÓs audit results. Despite

ha ving knowledge of the se proceedings through its registered

agent, Petitioner failed to comply with the Initial Order or the

Order of Pre - Hearing Instructions , and failed to appear at the

final hearing.

4 . Based on PetitionerÓs failure to appear and offe r

evidence, there is no evidentiary basis on which findings can be

made regarding the Medicaid Audit Report, other than it was

provided to Petitioner with a notice of rights.

CONCLUSIONS OF LAW

5. The Division of Administrative Hearings has

jurisdiction over the parties to and the subject matter of this

proceeding. §§ 120.569 and 120.57, Fla. Stat. (201 4 ).

6 . As the party c hallenging the audited Medicaid rates,

Petitioner has the burden of proving that its rates were

correct. Sunrise Community, Inc. v. Ag. for Health Care Admin. ,

Case No s . 1 0 - 4204 , et al ., (Fla. DOAH Apr. 25, 2011 ; AHCA

A ug. 25, 2011 ) .

7 . Petitioner failed to meet its burden of proof.

RECOMMENDATION

Based on the foregoing Findings of Fact and Conclusions of

Law, it is RECOMMENDED that the Agency for Health Care

Administration enter a final order dismissing the Petition for

Formal Administrative Hearing and adopt ing the Medicaid Audit

Report as final agency action in this proceeding.

DONE AND ENT ERED this 11th day of March, 201 5 , in

Tallahassee, Leon County, Florida.

S

E. GARY EARLY

Administrative Law Judge

Division of Administrative Hearings

The DeSoto Building

1230 Apalachee Parkway

Tallahassee, Florida 32399 - 3060

(850) 488 - 9675

Fax Filing (850) 921 - 6847

www.doah.state.fl.us

Filed with the Clerk of the

Division of Administrative Hearings

this 11th day of March, 201 5 .

COPIES FURNISHED :

John F. Gilroy, III, Esquire

John F. Gilroy III, P.A.

1695 Metropolitan Circle, Suite 2

Tallahassee, Florida 32308

(eServed)

Steven Lee Pe rry, Esquire

Office of Attorney General

The Capitol, Plaza Level 01

Tallahassee, Florida 32399

(eServed)

Richard J. Shoop, Agency Clerk

Agency for Health Care Administration

2727 Mahan Drive, Mail Stop 3

Tallahassee, Florida 32308

(eServed)

Stuart Will iams, General Counsel

Agency for Health Care Administration

2727 Mahan Drive, Mail Stop 3

Tallahassee, Florida 32308

(eServed)

Elizabeth Dudek, Secretary

Agency for Health Care Administration

2727 Mahan Drive, Mail Stop 1

Tallahassee, Florida 32308

(eSe rved)

NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

All parties have the right to submit written exceptions within

15 days from the date of this Recommended Order. Any exceptions

to this Recommended Order should be filed with the agency that

will issue the Fina l Order in this case.