18-005986F Agency For Health Care Administration vs. Covenant Hospice, Inc.
 Status: Closed
Recommended Order on Wednesday, June 12, 2019.


View Dockets  
Summary: AHCA is not entitled to attorney's fees under section 409.913(23), Florida Statutes, as attorney's fees are not considered legal costs.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8AGENCY FOR HEALTH CARE

12ADMINISTRATION,

13Petitioner,

14vs. Case No. 18 - 5986F

20COVENANT HOSPICE, INC.,

23Respondent.

24_______________________________/

25RECOMMENDED ORDER

27This case is before Administrativ e Law Judge Yolonda Y.

37Green of the Division of Administrative Hearings (ÐDivisionÑ)

45pursuant to the partiesÓ Joint Motion to Cancel Hearing and Set

56Date to File Briefs . T he case was submitted for decision based

69upon a stipulated record.

73APPEARANCES

74For Petitioner: M arion Drew Parker, Esquire

81Radey Law Firm

84Suite 200

86301 South Bronough Street

90Tallahassee, Florida 32301 - 1722

95For Respondent: Bryan K. Nowicki, Esquire

101Joshua D. Tagga tz, Esquire

106Reinhart Boerner Van Deuren, S.C.

111Suite 600

11322 East Mifflin Street

117Madison, Wisconsin 5 3 701 - 2018

124STATEMENT OF THE ISSUE

128The issue to be determined in this matter is whether the

139Agency for Health Care Administra t ion (Ð AHCA Ñ) is entitled to

152recover its attorneyÓs fees and costs , pursuant to section

161409.913(23), Florida Statutes , incurred prosecuting a matter

168pursuant to section 409.913.

172PRELIMINARY STATEMENT

174On October 17, 201 8, AHCA issued a Final Order in Agency

186for Health Care Administration v. Covenant Hospice, Inc. ,

194Case No. 17 - 4641 MPI (Fla. DOAH Aug. 15, 2018), rejected in part ,

208Case No. 18 - 0701 (Fla. AHCA Oct. 17, 2018) (ÐOverpayment CaseÑ) ,

220finding AHCA is entitled to recover $637,973.10 in Medicaid

230overpayments and to impose a fine of $127,594.62. The Final

241Order concluded, Ð[a] dditionally, since the Agency has prevailed

250in this matter, it is entitled to recover its investigative,

260legal, and expert witness cost s it incurred in this matter.

271§ 409.91 3(23), F la. S tat .Ñ The Final Order provided that if the

286parties are unable to reach an agreement as to costs, either

297party may file a request with the Division within 30 days of the

310date of the rendition of the Final Order.

318On November 15, 2018, AHCA time ly filed its Petition for

329Administrative Hearing for Recovery of Fees and Costs

337(ÐPetitionÑ) . The Petition was assigned to the undersigned for

347disposition. On November 26, 2018, the undersigned conducted a

356telephonic hearing with the parties, at which time they

365requested that the case be placed in abeyance to allow

375additional time to resolve the matter without a hearing. On

385December 28, 2018 , the parties submitted their Joint Status

394R eport requesting additional time, until February 7, 2019, to

404discuss settlement negotiations. On February 7 , 2019, AHCA

412filed its A mended Petition for Recovery of PetitionerÓs F ees and

424Costs , w hich is the P etition at issue in this matter. Covenant

437Hospice, Inc. (ÐCovenantÑ), disputes that AHCA is entitled to

446legal fees and costs. On February 8, 2019, the parties filed

457their Joint Status R eport providing dates to schedule the final

468hearing. The final hearing in this matter was then scheduled

478for April 3, 2019.

482On March 15, 2019, the undersigned held a c ase management

493conference , pursuant to the partiesÓ request . The parties

502advised the undersigned of their desire to forego an evidentiary

512hearing and to limit the instant case to the legal question of

524whether AHCA is entitled to attorneyÓs fees and costs under

534section 409.913(23) . The parties were instructed to file their

544Joint St ipulated Preliminary Facts (ÐJoint StipulationÑ) and

552b riefs , which contained facts that have been incorporated into

562the Findings fo Fact below, to the extent relevant.

571On April 5, 2019, Respondent filed its Motion to Strike two

582exhibits attached to AHCAÓs Memorandum of Law in Support of

592PetitionerÓs Amended Petition for Legal Fees . The undersigned

601denied the Motion to Strike and took official recognition of the

612two exhibits. T hus, PetitionerÓs Exhbits 1 and 2 have been

623admitted. RespondentÓs Exhibit 1 has been admitted. All

631exhibits and the Joint Stipulation were co nsidered in

640preparation of this Recommended Order. 1 /

647FINDING S OF FACT

6511 . AHCA is the state agency responsible for administering

661the Florida Medicaid Program. Medicaid is a joint federal/state

670program to provide health care and related services to qualified

680individuals, including hospice services.

6842 . Covenant is a provider of hospice and end - of - life

698services and at all times relevant to this matter, the program

709was an authorized provider of Medicaid services pursuant to a

719valid Medicaid provider agreement with AHCA.

7253 . AHCA is authorized to recover Medicaid overpa yments, as

736deemed appropriate, pursuant to section 409.913 .

7434. The U.S. Department of Health & Human Services, Centers

753for Medicare and Medicaid Services (ÐCMSÑ) , contracte d with

762Health Integrity , a private vendor, to perform an aud it of

773Covenant. Health Integrity retained a company called Advanced

781Medical Reviews (ÐAMRÑ) to provide peer physician reviews of

790claims to determine whether an overpayment occurred.

7975. Based on the audit findings in the Overpayment C ase,

808AHCA prosecuted claims against Covenant for Medicaid

815overpayment.

8166 . On August 9, 2016, AHCA provided a Final Audit Report

828(ÐFARÑ) to Covenant seeking $715,518.14 in overpayments,

836$142,903.63 in fines, and $131.38 in costs.

8447 . On August 29, 2016, Covenant timely filed a Petition

855for Formal Administrative Hearing.

8598 . The undersigned conducted a final hearing on March 19

870through 2 3, 2018, on CovenantÓs Petition filed in the

880Overpayment Case. At the time of the fina l hearing, AH CA sought

893a modified overpayment of $677,023.44, and a fine of

903$135,404.68.

9059 . On August 15, 2018, the undersigned issued a

915Recommended Order in the Overpayment Case finding AHCA is

924entitled to collect an overpayment of $637,632.15 , and a fine of

936$127,526.43. The Recommended Order noted that AHCA reserved its

946right to amend it s cost worksheet in this matter and , pursuant

958to section 409.913(23) , file a request with the undersigned to

968recover all investigative and legal costs, if it p revailed .

97910 . On October 17, 2018, AHCA issued a Final Order in the

992Overpayment Case finding AHCA is entitled to recover $637,973.10

1002in overpayments and to impose a fine of $127,594.6 2. The Final

1015Order concluded, Ð[a] dditionally, since the Agency has pre vailed

1025in this matter, it is entitled to recover its investigative,

1035legal, and expert witness costs it incurred in this matter.

1045§ 409.913(23), F la . S tat .Ñ Further, it provided that if the

1059parties are unable to reach an agreement as to costs, either

1070party may file a request with the Division requesting a final

1081hearing within 30 days of the date of the rendition of the Final

1094Order.

109511 . On November 15, 2018, AHCA timely filed its Petitio n

1107for Recovery of AHCAÓs Legal Fees and C osts. On February 7,

11192018, AHCA amended its Petition. Covenant opposed AHCA Ós

1128P etition and disputed whether AHCA is entitled to legal fees.

113912 . Covenant has appealed the Final Order in the

1149Overpayment Case, and the appeal is p ending before the First

1160District Court of Appeal in C ovenant v. AHCA , Case

1170No. 1D18 - 4797 .

117513 . The final hearing was held on a stipulated record,

1186PetitionerÓs Memorandum of Law in Support of PetitionerÓs

1194Amended Petition for Legal Fees, and CovenantÓs Brief in

1203Opposition to AHCAÓs Petition for Recovery of Costs and Fees

1213(with e xhibits) . Legal issues were framed by the Joint

1224Stipulation. There was no testimony of any witnesses offered by

1234either party.

123614 . The exhibits constituting the record were exhi bits to

1247RespondentÓs B rief and PetitionerÓs Memorandum of Law.

125515 . The parties have stipulated to the reason ableness of

1266AHCAÓs claimed attorneyÓs fees, in accordance with the partiesÓ

1275agreement stated in the Joint Motion for Case Management

1284Conference dated March 11, 2019. The issue that remains is

1294whether AHCA is entitled to re covery of $330,186.14 in

1305attorneyÓs fees under s ection 409.913(23). For the reasons

1314explained below, the undersigned finds that Florida law does not

1324support a finding that AHCA is entitled to the attorneyÓ s fees

1336in dispute.

1338CONCLUSIONS OF LAW

134116 . The Division of Administrative Hearings has

1349jurisdiction over the subject ma tter and the parties to this

1360action in ac cordance with sections 120.569 and 120.57(1),

1369Florida Statutes (2018 ).

137317 . Pursuant to section 409.913, AHCA is the sole agency

1384authorized to investigate and prosecut e claims for possible

1393Medicaid fraud, abuse , or overpayment s .

140018 . Section 409.913 (23) provides:

1406(a) In an audit or investigation of a

1414violation committed by a provider which is

1421conducted pursuant to this section, the

1427agency is entitled to recover all

1433investigative, legal, and expert witness

1438costs if the agencyÓs findings were not

1445contested by the provider or, if contested,

1452the agency ultimately prevailed.

1456(b) The agency has the burden of

1463documenting the costs, which include

1468salaries and employee benefits and out - of -

1477pocket expenses. The amount of costs that

1484may be recovered must be reasonable in

1491relation to the seriousness of the violation

1498and must be set taking into conside ration

1506the financial resources, earning ability,

1511and needs of the provider, who has the

1519burden of demonstrating such factors.

1524(c) The provider may pay the costs over a

1533period to be determined by the agency if the

1542agency determines that an extreme hardshi p

1549would result to the provider from immediate

1556full payment. Any default in payme nt of

1564costs may be collected by any means

1571authorized by law.

157419 . The standard of proof is a preponderance of the

1585evidence. § 120.57(1)(j) , Fla. Stat.

159020 . The Final Order entered in the Overpayment Case has

1601determined that Petitioner "ultimately prevailed," as re quired

1609by section 409.913(23). Based on the stipulation of the

1618parties, the sole question here is whether AHCA is entitled to

1629attorneyÓs fees for prevailing in th e Overpayment Case.

1638Plain Meaning of Statute

164221 . AHCAÓs entitlement to attorneyÓs fees under section

1651409.913 (23) ultimately will turn on the meaning of the term

1662Ðlegal costs.Ñ

166422 . Each party asserts that the Ðplain meaningÑ of the

1675statute supports their respective positions. AHCA asserts that

1683section 409.913(23) (a) authorizes it to recover all of the

1693investigative, legal, and expert witness cost s it incurred to

1703prosecute the Overpayment C ase, including attorneyÓs fees from

1712outside counsel. AHCA further argues that a providerÓs costs

1721may be reduced based on factors outlined i n section

1731409.913(23)(b).

173223 . By contrast, Covenant asserts a different reading of

1742the statute based on the plain mea ning of section 409.913 (23) .

1755Covenant takes the position that section 409.913(23) only

1763provides that AHCA is entitled to its Ðlegal costsÑ without any

1774reference to Ðlegal fees.Ñ Covenant also asserts that Florida

1783law does not support the expansion of the term Ðlegal cos tsÑ to

1796include attorneyÓs fees.

17992 4 . Despite the parties ' assertion that the Ðplain

1810meaningÑ of section 409.913(23) controls in this matter , they

1819differ in their interpretation of the statute. Covenant argues

1828the statu te must be strictly construed because the statu t e is in

1842derogation of common law. On the other hand, AHCA argues that

1853section 409.913(23) is remedial and , thus, it must be liberally

1863construed. Under either analysis, there is not sufficient

1871support to interpret Ðlegal costsÑ as including attorneyÓs fees.

1880Strict Construction

188225 . Under Florida law , statutes awarding attorneyÓs fees

1891to a prevailing party are in derogation of the common law

1902ÐAmerican Rule , Ñ the well - established law in Florida that each

1914party pays its own fee s, and , therefore , must be strictly

1925construed. See Johnson v. DepÓt of Corr. , 191 So. 3d 965, 968

1937(Fla. 1st DCA 2016). A strict construction of the plain

1947language of section 409.913(23) requires that the term ÐcostsÑ

1956be given its exact and technical mean ing in Florida, which does

1968not inclu de attorneyÓs fees.

197326 . In Florida , legal costs and attorneyÓs fee s do not

1985have the same meaning. Johnson v. Jarvis , 107 So. 3d 428

1996(Fla. 1st DCA 2012). ÐCostsÑ are generally not considered

2005attorneyÓs fees. Price v. Tyler , 890 So. 2d 246, 252

2015(Fla. 2004). See also Wiggins v. Wiggins , 446 So. 2d 1078

2026(Fla. 1984).

202827 . In Price , the statutory provision provided that Ð[t]he

2038party recovering judgment shall recover all o f his or her legal

2050costs.Ñ Id. The Supreme Cour t ruled that Ð[i]n this action,

2061the trial court should not have inc luded attorneyÓs fees as

2072ÒcostsÓ because Section 57.041 does not include attorneyÓs fees

2081in the definition of litigation costs.Ñ Id. at 253.

209028 . It is worth noting that, expressio unius est exclusio

2101alterius applies here in that the mention of one thing imp lies

2113the exclusion of another. Ð[W]here a statute enumerates the

2122things on which it is to operate, or forbids certain things, it

2134is ordinarily to be construed as excluding from i ts operation

2145all those not expressly mentioned.Ñ See Thayer v. State ,

2154335 So. 2d 815, 817 (Fla. 1976) .

216229 . Here, s ection 409.913(23) lists the costs to be

2173considered, including investigative, exp ert, and legal costs.

2181I t does not mention attorneyÓs fees.

2188Liberal Construction

219030 . AHCA argues that section 409.913 should be interpreted

2200based on liberal construction of the statute because it is a

2211remedial statute, instead of strict construction.

221731 . In Florida, Ð[w]hen a statute is both in derogation of

2229the common law and remedial in nature, the rule of strict

2240construction should not be applied so as to frustrate the

2250legislative intent.Ñ Irven v. DepÓt of Health & Rehab. Servs. ,

2260790 So. 2d 403, 40 6 (Fla. 2001). Instead, the opposite is true:

2273ÐThe statute should be construed liberally in order to give

2283effect to the legislation.Ñ Id .

228932 . In Irven , a former child protective investigator sued

2299the Department of Health and Rehabilitative Services, her

2307employer, un der the Florida Whistleblower Act. After a jury

2317verdict in her favor, the Department appealed to the Second

2327District Court of Appeal (ÐDCAÑ), arguing that the Whistleblower

2336Act did not waive sovereign immunity for the type of claim the

2348inv estigator asserted. On appeal, the Second DCA addressed the

2358Ðdeterminative issueÑ of whether the acts and communications by

2367the investigator were Ðwhistle - blowerÑ acts, as defin ed and

2378protected by the Whistleb lower Act. Irven v. DepÓt of Health

2389and Rehab . Servs. , 790 So. 2d at 403 ( quoting Irven v. DepÓt of

2404Heath & Rehab. Servs. , 724 So. 2d 689, 699 (Fla. 2d DCA 1999) ) .

241933 . In Irven , the Court relied upon the Ðstrict

2429constructionÑ canon, stating :

2433ÐI t is clear to us that the ÒWhistle Î

2443Blower's Act,Ó . . . clearly and

2451unequivocally waives sovereign im munity for

2457the purposes of the ÒRemediesÓ and ÒReliefÓ

2464afforded by subsections 112.3187(8) and (9).

2470It is equally clear to us , however, that

2478because any waiver of sovereign immunity

2484must be clear and unequivo cal . . . , the

2494waiver must be limited to the acts or

2502conduct clearly and unequivocally prohibited

2507or protected against. Therefore, the waiver

2513must be strictly construed and applied. A

2520protection against acts not clearly

2525delineated as prohibited or prote cted must

2532not be implied. Ñ Id .

253834 . While the parties assert that the plain meaning of the

2550stat ute clearly supports their respective positions, the

2558undersigned concludes that section 409.913(23) is not clear

2566under strict or liberal construction regarding whether Ð legal

2575costs Ñ include attorneyÓs fees.

258035 . The parties both address whether AHCA should be

2590entitled to deference regarding the interpretation of Ðlegal

2598costs.Ñ However, in this matter the definition of Ðlegal costsÑ

2608is outside AHCAÓs substantive jurisdiction. See G. E. L. Corp.

2618v. Dep't of Envtl. Prot. , 875 So. 2d 12 57, 1263 - 64 (Fla. 5th

2633DCA 2004). But the obvious resemblances between statutes to

2642recover costs and attorney's fees casts doubt on how a court may

2654resolve the question of whether the construction of §

2663409.913(23) is within the substant i al jurisdiction of

2672Petitioner. Thus, deference would not be a factor here.

2681Bill Analysis

268336 . The parties have each cited to the Final Bill Analyse s

2696and Economic Impact Statement for CS/ H B 133 (Ð1996 House Bill

2708Analys i s Ñ) , as providing evidence of the intent of the

2720Legislature when it amended the statute regarding Medicaid

2728recovery .

273037 . T he issue in this matter is specific to the meaning of

2744Ðlegal costs.Ñ However, the 1996 House Bill Analysis does not

2754directly address attorneyÓs fees or the meaning of Ðlegal

2763costs.Ñ It directly addresses AHCAÓs authority to Ðconduct

2771federally program integrity, or Medicaid abu se investigatory and

2780sanctioning activities.Ñ Likewise, in Senate Staff Analysi s and

2789Economic Impact Statement for CS /S B 118 (Ð1996 Senate Bill

2800AnalysisÑ) , there is little to offer regarding whether the

2809L egislature int ended Ðlegal costsÑ to include attorn eyÓs fees.

2820Joint Report

282238 . There is addition al information provided in the j oint

2834AHCA and Medicaid Fraud Control Unit Report (ÐJoint ReportÑ) ,

2843which requires AHCA to provide the amount of costs incurred each

2854year for discovery and prosecution of Medicaid overpayment

2862annually. This report is submi tted as required by section

2872409.913 (1) .

287539 . AHCA asserts that since it i s required to document

2887cost s associated with discovering and prosecution of providers

2896for Medicaid overpayment , the statute contemplates that AHCA

2904woul d recover its attorneyÓs fees. However, even in the

2914introductory paragraph and the Joint Report, if the L egislature

2924intended ÐcostsÑ to include attorneyÓs fees, it would have been

2934addressed in the statute. Thus, the Joint Report does not

2944provide persuasive guidance on whether the legislature intended

2952Ðlegal costsÑ to include attorneyÓs fees.

2958Definition of Costs

296140 . Section 40 9.913 contains no definition for the term

2972Ðlegal costs.Ñ O ther provisions of the Medicaid statute under

2982AHCAÒs jurisdiction specifically reference ÐattorneyÓs feesÑ

2988when such a recovery is intended. See , e.g. , § 409.907(3)(h),

2998Fla. Stat. It is established in Florida that t he Legislature

3009clearly knows how to declare its intention to authorize AHCA to

3020recover attorneyÓs fees when that is its desire. Ð[T]he

3029Legislature must be assumed to know the meaning of words and to

3041have expressed its intent b y the use of the words found in the

3055statute.Ñ See Thayer v. State , 335 So. 2d at 817 .

3066Other Statutes

306841 . Other s tatutes that address recovery of attorneyÓs

3078fees for prosecution of allegations of non - compliance by

3088providers or professionals may provide guidance regarding the

3096definition of Ðlegal costs . Ñ

310242 . Looking to l icensee enforcement actions taken by the

3113Florida Department of Health (ÐDOHÑ), s ection 456.072(4),

3121F lorida Statutes, authorizes DOH to recover costs related to the

3132time spent by the attorney and othe r personnel working on the

3144case and other expenses as the prevailing party in licensee

3154disciplinary proceedings.

315643 . Section 456.072(4), in pertinent part, provides:

3164(4) In addition to any other discipline

3171imposed through final order, . . . the

3179board, or the department when there is no

3187board, shall assess costs related to the

3194investigation and prosecution of the case.

3200The costs related to the investigation and

3207prosecution include , but are not limited to,

3214salaries and benefits of personnel, costs

3220related to the time spent by the attorney

3228and other personnel working on the case , and

3236any other expenses incurred by the

3242department for the case. The board, or the

3250department when there is no board, shall

3257determine the amount of costs t o be assessed

3266after its consideration of an affidavit of

3273itemized costs and any written objections

3279thereto.

328044 . Although the word ÐfeesÑ does not appear in s ection

3292456.072(4), that statute explicit ly defines ÐcostsÑ to include

3301Ð time spent by the attorne y.Ñ S ection 409.913 , by contrast,

3313does not go as far as extending such a meaning to Ðlegal costs. Ñ

332745 . In comparison, s ection 455.227, Florida Statutes, the

3337Department of Business Professional RegulationÓs counter - part to

3346the Health Care Practitioner Regulation statute, provides a vast

3355difference in that it does not allow attorneyÓs fees.

336446 . Section 455.227 provides , in pertinent part , as

3373follows:

3374(3)(a) In addition to any other discipline

3381imposed pursu ant to this section or

3388discipline imposed for a violation of any

3395practice act, the board, or the department

3402when there is no board, may assess costs

3410related to the investigation and prosecution

3416of the case excluding costs associated with

3423an attorneyÓs time .

342747 . Most important to this case is that section 455.227

3438clearly provides for costs related to investigation and

3446prosecution of the case, but excludes attorney Ós fees. Unlike

3456section 409.913(23), section 455.227 take s the extra step in

3466defining the ter m Ðlegal costs.Ñ

347248 . Based on similar statutes, PetitionerÓs position is

3481unsupported under Florida law.

3485Costs Statutes

348749 . It is worthwhile to look to the statutes that

3498specifically award attorneyÓs fees as they may shed light on the

3509issue of whether Ðlegal costsÑ include s attorneyÓs fees.

351850 . Under section 57.105(5) , Florida Statutes, in

3526administrative proceedings under chapter 120, an administrative

3533law judge shall award a reason able attorneyÓs fee and damages,

3544if it is determined that the losing pa rty raised unsupported

3555claims or defenses.

355851 . Under section 57.111, an award of attorneyÓs fees and

3569costs shall be made to a prevailing small business party

3579initiated by a state agency, unless the actions of the agency

3590were substantially justified or special circumstances exist

3597which would make the award unjust. The purpose of section

360757.111 is to deter agencies from brin g ing actions aga inst

3619persons without having substantial justification for the action.

362752 . Section 57.111 (4) (b)1 . outlines in detail the process

3639for an attorneyÓs fees and costs award , most important here, by

3650requiring an affidavit that shows the nature and extent of the

3661services rendered by the attorney , as well as the costs incurred

3672in preparations, motions, hearings, and appeals in the

3680proceeding.

368153 . Under chapter 120, section 120.595(1)(e), which awards

3690reasonable costs and attorneyÓs fees to the prevailing party if

3700the losing party acted for an improper purpose, defines costs as

3711follows: Ð ÒCostsÓ has the same meaning as the costs allowed in

3723civil actions in this state as provided in chapter 57. Ñ

373454 . When recovering from a losing party, section 57.041(1)

3744provides th at t he prevailing party shall recover all his or her

3757Ð legal costs Ñ and charges, which shall be included in the

3769judgment.

37705 5 . When defining the costs that are allowed,

3780section 57.071 provides as follows:

3785(1) If costs are awarded to any party, the

3794following shall also be allowed:

3799(a) The reasonable premiums or expenses

3805paid on all bonds or other security

3812furnished by such party.

3816(b) The expense of the court reporter for

3824per diem, transcribing proceedings and

3829deposi tions, including opening statements

3834and arguments by counsel.

3838(c) Any sales or use tax due on legal

3847services provided to such party,

3852notwithstanding any other provision of law

3858to the contrary.

3861(2) Expert witness fees may not be awarded

3869as taxable costs unless the party retaining

3876the expert witness furnishes each opposing

3882party with a written report signed by the

3890expert witness which summarizes the expert

3896witnessÓs opinions and the factual basis of

3903the opinions, including documentary evidence

3908and the aut horities relied upon in reaching

3916the opinions. Such report shall be filed at

3924least 5 days prior to the deposition of the

3933expert or at least 20 days prior to

3941discovery cutoff, whichever is sooner, or as

3948otherwise determined by the court. This

3954subsection d oes not apply to any action

3962proceeding under the Florida Family Law

3968Rules of Procedure.

397156 . Although section 409.913 is specifically related to

3980recovery of Medicaid payments, even under the general cost

3989statute, the term Ðlegal feesÑ does not include attorneyÓs fees.

3999Legal Costs are Not Limited to Those I ncurred by A gency S taff

4013A ttorneys

401557 . Covenant asserts additional theories to advance its

4024position that AHCA is not entitled to attorneyÓs fees in this

4035matter.

403658 . First, Respondent asserts that any entitlement to fees

4046would be reserved for only state agency atto rneys and not

4057outside counsel. That argument, though it seems plausible,

4065fails t o acknowledge that section 409.913 (23) clearly states

4075that the agency is entitled to recover Ð all legal costsÑ without

4087any distinction between those incurred by agency attorneys or

4096outside counsel.

4098Entitlement to AttorneyÓs Fees under the Statute, Given I t is a

4110F ede ral Audit and N ot a S tate A udit

412259 . Next, Covenant takes the position, which is contrary

4132to their position at hearing, that AHCA is not entitled to costs

4144as the audit was under state law instead of federal law. AHCA

4156seeks costs under section 409.913(23) Ð[f]or audits or

4164investigations of a violation committed by a provider which is

4174conducted pursuant to [section 409.913]. Covenant argues that

4182section 409.913 does not contemplate audits directed by CMS, a

4192federal agency, and conducted by Health Integrity, a federal

4201contractor and , thus, AHCA is not entitled to costs under

4211section 409.913(23).

421360 . This interpretation fails to accept that AHCA is the

4224state agency responsible for administering the Florida Medicaid

4232program and required to recover Medicaid overp ayments.

4240§ 409.913(2), Fla. Stat. When an overpayment is identified,

4249AHCA is required to recover the overpayment and impose

4258sanctions, as appropriate. § 409.913, Fla. Stat.

4265Conclusion

426661 . Section 409.913(23) provides AHCA the pathway to

4275recover Ðlegal costs.Ñ Section 409.913(23) , by it s terms,

4284however, does not authorize AHCA to recover its attorneyÓs fees.

429462 . It is not within the province of this administrativ e

4306law judge to write in language , e.g., authorizing attorneyÓs

4315fees, into section 409.913(23). While AHCAÓs positio n is well -

4326taken, t he undersigned is not at li berty to rewrite section

4338409.913 (23) in order to reach a desired result.

4347RECOMMENDATION

4348Based on the foregoing Findings of Fact and Conclusions of

4358Law, it is RECOMMENDED that the Agency for Health Care

4368Administration enter a final order that section 409.913(23) (a)

4377does not authorize the Agency for Health Care Administration to

4387recover its attorneyÓs fees under the guise of Ðlegal costsÑ for

4398the audit related to this matter.

4404DONE AND ENTERED this 12 th day of June , 2019 , in

4415Tallahassee, Leon County, Florida.

4419S

4420YOLONDA Y. GREEN

4423Administrative Law Judge

4426Division of Administrative Hearings

4430The DeSoto Building

44331230 Apalachee Parkway

4436Tallahassee, Florida 32399 - 3060

4441(850) 488 - 9675

4445Fax Filing (850) 921 - 6847

4451www.doah.state.fl.us

4452Filed with the Clerk of the

4458Division of Administrative Hearings

4462this 12 th day of June , 2019 .

4470ENDNOTE

44711/ Although Administrative Law Judges (ALJs) maintain final

4479order authority in attorney Ós fees statutes under chapter 120

4489and other statutes, section 409.913(23), Florida Statutes , does

4497not extend final order authority to ALJs. See Ag. f or Health

4509Care Admi n. v. Hal M. Tobias , Case No. 13 - 3818MPI ( Fla. DOAH

4524Feb. 24, 2014; Fla. AHCA Mar. 27, 2014).

4532COPIES FURNISHED:

4534Terrie L. Didier, Esquire

4538Beggs and Lane

4541501 Commendencia Street

4544Pensacola, Florida 32591 - 2950

4549(eServed)

4550Steven Alfons Grigas, Esquire

4554Akerman, LLP

4556Suite 1200

4558106 East College Avenue

4562Tallahassee, Florida 32301 - 7741

4567(eServed)

4568T homas M. Hoeler, Esquire

4573Agency for Health Care Administration

4578Mail Stop 3

45812727 Mahan Drive

4584Tallahassee, Florida 32308

4587(eServed)

4588Bryan K. Nowicki, Esquire

4592Reinhart Boerner Van Deuren , S.C.

4597Suite 600

459922 East Mifflin Street

4603Madison, Wisconsin 53701 - 2018

4608(eServed)

4609Marion Drew Parker, Esquire

4613Radey Law Firm

4616Suite 200

4618301 South Bronough Street

4622Tallahassee, Florida 32301 - 1722

4627(eServed)

4628Thomas A. Range, Esquire

4632Akerman LLP

4634Suite 1200

4636106 East College Avenue

4640Tallahassee, Florida 32301

4643(eServed)

4644Rex D. Ware, Esquire

4648Moffa, Sutton & Donnini, P.A.

4653Suite 330

46553500 Financial Plaza

4658Tallahassee, Florida 32312

4661(eServed)

4662Joshua D. Taggatz, Esquire

4666Reinhart Boerner Van Deuren S.C.

4671Suite 600

467322 East Mifflin Street

4677Madison, Wisconsin 53701 - 2018

4682(eServed)

4683Richard J. Shoop, Agency Clerk

4688Agency for Health Care Administration

46932727 Mahan Drive, Mail Stop 3

4699Tallahassee, Florida 32308

4702(eServed)

4703Stefan Grow, General Counsel

4707Agency for Health Care Administration

47122727 Mahan Drive, Mail Stop 3

4718Tallahassee, Florida 32308

4721(eServed)

4722Mary C. Mayhew, Secretary

4726Agency for Health Care Administration

47312727 Mahan Drive, Mail Stop 1

4737Tallahassee, Florida 32308

4740(eServed)

4741Kim Kellum, Esqu ire

4745Agency for Health Care Administration

47502727 Mahan Drive, Mail Stop 3

4756Tallahassee, Florida 32308

4759(eServed)

4760NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

4766All parties have the right to submit written exceptions within

477615 days from the date of this Recommended Order. Any

4786exceptions to this Recommended Order should be filed with the

4796agency that will issue the Final Order in this case.

Select the PDF icon to view the document.
PDF
Date
Proceedings
PDF:
Date: 09/06/2019
Proceedings: Respondent's Exceptions to Recommended Order filed.
PDF:
Date: 09/06/2019
Proceedings: Agency Final Order filed.
PDF:
Date: 08/19/2019
Proceedings: Agency Final Order
PDF:
Date: 06/12/2019
Proceedings: Recommended Order
PDF:
Date: 06/12/2019
Proceedings: Recommended Order. CASE CLOSED.
PDF:
Date: 06/12/2019
Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
PDF:
Date: 04/25/2019
Proceedings: Amended Order Denyng Motion to Strike.
PDF:
Date: 04/23/2019
Proceedings: Notice of Telephonic Motion Hearing (motion hearing set for April 24, 2019; 11:00 a.m.).
PDF:
Date: 04/22/2019
Proceedings: Covenant's Motion for Clarification or Rehearing filed.
PDF:
Date: 04/19/2019
Proceedings: AHCA's Motion for Clarification filed.
PDF:
Date: 04/18/2019
Proceedings: Order Denying Motion to Strike.
PDF:
Date: 04/15/2019
Proceedings: Notice of Telephonic Motion Hearing (motion hearing set for April 18, 2019; 10:00 a.m.).
PDF:
Date: 04/12/2019
Proceedings: Petitioner's Response in Opposition to Respondent's Motion to Strike filed.
PDF:
Date: 04/05/2019
Proceedings: Motion to Strike filed.
PDF:
Date: 04/03/2019
Proceedings: Petitioner's Memorandum of Law in Support of Petitioner's Amended Petition for Legal Fees filed.
PDF:
Date: 04/03/2019
Proceedings: Joint Stipulated Preliminary Facts filed.
PDF:
Date: 04/02/2019
Proceedings: Affidavit of Joshua D. Taggatz in Support of Covenant's Brief in Opposition to AHCA's Petition for Recovery of Costs and Fees (with Exhibits) filed.
PDF:
Date: 04/02/2019
Proceedings: Respondent's Notice of Filing of Affidavit of Joshua D.Taggatz in Support of Covenant's Brief in Opposition to AHCA's Petition for Recovery of Costs and Fees filed.
PDF:
Date: 03/28/2019
Proceedings: Brief in Opposition to AHCA's Amended Petition for Recovery of Costs and Fees filed.
PDF:
Date: 03/21/2019
Proceedings: Order Regarding Briefing Schedule.
PDF:
Date: 03/14/2019
Proceedings: Notice of Telephonic Pre-hearing Conference (set for March 15, 2019; 2:30 p.m.).
PDF:
Date: 03/12/2019
Proceedings: Notice Regarding Correspondence from Respondent.
PDF:
Date: 03/11/2019
Proceedings: Joint Motion for Case Management Conference filed.
PDF:
Date: 03/08/2019
Proceedings: Correspondence to Judge Green regarding Legal Fees filed.
PDF:
Date: 02/14/2019
Proceedings: Respondent's Response to Amended Petition for Recovery of Petitioner's Fees and Costs filed.
PDF:
Date: 02/12/2019
Proceedings: Order Accepting Qualified Representative.
PDF:
Date: 02/11/2019
Proceedings: Affidavit of Joshua D. Taggatz in Support of Respondent's Motion to Designate Qualified Representative filed.
PDF:
Date: 02/11/2019
Proceedings: Respondent's Motion to Designate Qualified Representative filed.
PDF:
Date: 02/11/2019
Proceedings: Notice of Hearing (hearing set for April 3, 2019; 9:30 a.m.; Tallahassee, FL).
PDF:
Date: 02/08/2019
Proceedings: Status Report filed.
PDF:
Date: 02/07/2019
Proceedings: Amended Petition for Recovery of Petitioner's Fees and Costs filed.
PDF:
Date: 01/25/2019
Proceedings: Status Report filed.
PDF:
Date: 01/07/2019
Proceedings: Order Continuing Case in Abeyance (parties to advise status by January 28, 2019).
PDF:
Date: 12/28/2018
Proceedings: Status Report of the Parties filed.
Date: 11/26/2018
Proceedings: CASE STATUS: Status Conference Held.
PDF:
Date: 11/26/2018
Proceedings: Order Placing Case in Abeyance (parties to advise status by December 28, 2018).
PDF:
Date: 11/21/2018
Proceedings: Respondent's Response to Petition for Recovery of Petitioner's Fees and Costs filed.
PDF:
Date: 11/19/2018
Proceedings: Notice of Telephonic Scheduling Conference (set for November 26, 2018; 11:00 a.m.).
PDF:
Date: 11/16/2018
Proceedings: Notice sent out that this case is now before the Division of Administrative Hearings.
PDF:
Date: 11/15/2018
Proceedings: Petition for Recovery of Petitioner's Fees and Costs filed. (FORMERLY DOAH CASE NO. 17-4641MPI)

Case Information

Judge:
YOLONDA Y. GREEN
Date Filed:
11/15/2018
Date Assignment:
11/16/2018
Last Docket Entry:
09/06/2019
Location:
Tallahassee, Florida
District:
Northern
Agency:
Other
Suffix:
F
 

Counsels

Related DOAH Cases(s) (2):

Related Florida Statute(s) (13):