18-005986F
Agency For Health Care Administration vs.
Covenant Hospice, Inc.
Status: Closed
Recommended Order on Wednesday, June 12, 2019.
Recommended Order on Wednesday, June 12, 2019.
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.
- Date
- Proceedings
- PDF:
- Date: 06/12/2019
- Proceedings: Recommended Order cover letter identifying the hearing record referred to the Agency.
- PDF:
- Date: 04/23/2019
- Proceedings: Notice of Telephonic Motion Hearing (motion hearing set for April 24, 2019; 11:00 a.m.).
- PDF:
- Date: 04/15/2019
- 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: 04/03/2019
- Proceedings: Petitioner's Memorandum of Law in Support of Petitioner's Amended Petition for Legal Fees 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: 03/14/2019
- Proceedings: Notice of Telephonic Pre-hearing Conference (set for March 15, 2019; 2:30 p.m.).
- PDF:
- Date: 02/14/2019
- Proceedings: Respondent's Response to Amended Petition for Recovery of Petitioner's Fees and Costs filed.
- 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: Notice of Hearing (hearing set for April 3, 2019; 9:30 a.m.; Tallahassee, FL).
- PDF:
- Date: 02/07/2019
- Proceedings: Amended Petition for Recovery of Petitioner's Fees and Costs filed.
- PDF:
- Date: 01/07/2019
- Proceedings: Order Continuing Case in Abeyance (parties to advise status by January 28, 2019).
- 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.).
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
-
Terrie L. Didier, Esquire
501 Commendencia Street
Pensacola, FL 325912950
(850) 432-2451 -
Shena L Grantham, Esquire
Mail Stop 3
2727 Mahan Drive
Tallahassee, FL 32308
(850) 412-3630 -
Steven Alfons Grigas, Esquire
Suite 1200
106 East College Avenue
Tallahassee, FL 32301
(850) 224-9634 -
Thomas M. Hoeler, Esquire
Mail Stop 3
2727 Mahan Drive
Tallahassee, FL 32308
(850) 922-5873 -
Bryan K. Nowicki, Esquire
Suite 600
22 East Mifflin Street
Madison, WI 537012018
(608) 229-2218 -
Marion Drew Parker, Esquire
Suite 200
301 South Bronough Street
Tallahassee, FL 32301
(850) 425-6654 -
Thomas A. Range, Esquire
Suite 1200
106 East College Avenue
Tallahassee, FL 32301
(850) 224-9634 -
Rex D. Ware, Esquire
Suite 330
3500 Financial Plaza
Tallahassee, FL 32312
(850) 213-2868 -
Shena Grantham, Esquire
Address of Record -
Joshua D. Taggatz, Esquire
Address of Record -
Shena L. Grantham, Esquire
Address of Record