96-004058CON Home Health Care Services, D/B/A Southmed Health Care vs. Agency For Health Care Administration
 Status: Closed
Recommended Order on Friday, June 27, 1997.


View Dockets  
Summary: Two applications in District three for Medicare certified home health agency Certificate Of Needs (CONs) are unique and should be granted.

1STATE OF FLORIDA

4DIVISION OF ADMINISTRATIVE HEARINGS

8HOME HEALTH CARE SERVICES, d/b/a )

14SOUTHMED HEALTH CARE, )

18)

19Petitioner, )

21)

22vs. ) Case Nos. 96-4058

27) 96-4060

29AGENCY FOR HEALTH CARE )

34ADMINISTRATION, )

36)

37Respondent. )

39__________________________________)

40RECOMMENDED ORDER

42Pursuant to notice, a final hearing was conducted in this

52matter by David M. Maloney, Administrative Law Judge of the

62Division of Administrative Hearings, on January 8, 9 and 10,

721997, in Tallahassee, Florida.

76APPEARANCES

77For Petitioner Cynthia S. Tunnicliff, Esquire

83Home Health Care Pennington Culpepper Moore

89Services d/b/a Wilkinson Dunbar and Dunlap, P.A.

96SouthMed Health Care Post Office Box 10095

103Tallahassee, Florida 32303-2095

106For Petitioner Theodore E. Mack, Esquire

112Lake City Nursing Cobb Cole and Bell

119Homes, Inc. 131 North Gadsden Street

125Tallahassee, Florida 32301

128For Respondent Richard Patterson, Esquire

133Agency for Health Agency for Health Care

140Care Administration Administration

1432727 Mah an Drive, Suite 3431

149Tallahassee, Florida 32308-5403

152STATEMENT OF THE ISSUES

156Whether there is need for any new Medicare certified home

166health agencies in AHCA District III, and if so, whether the

177applications filed with the Agency by the two petitioners in this

188case meet criteria for the award of a certificate of need?

199PRELIMINARY STATEMENT

201On August 28, 1996, the Division of Administrative Hearings

210received notices from the Agency for Health Care Administration

219advising that the Agency had received requests for a formal

229administrative hearing from four parties, all applicants for home

238health agency certificates of need in AHCA District III whose

248applications had been denied preliminarily: A Healthcare

255Specialists, Inc., Home Health Care Services d/b/a SouthMed

263Health Care, Home Health Integrated Health Services of Florida,

272Inc., and Lake City Nursing Homes, Inc. The Agency requested the

283Division of Administrative Hearings to assign the matters to a

293Hearing Officer (Administrative Law Judge) and to conduct all

302proceedings necessary under law, including submission of a

310recommended order to the agency.

315Attached to each of the notices was a Petition for Formal

326Administrative Hearing and a Notice of Related Petitions

334indicating that the four petitions were, indeed, related. The

343four cases were given Case Nos. 96-4057, 96-4058, 96-4059 and

35396-4060, assigned to Judge Eleanor M. Hunter, and consolidated.

362Following issuance of a notice of hearing, a continuance,

371and a second notice of hearing, the case proceeded to hearing the

383first full week of January, 1997. In the interim two of the

395petitioners filed voluntary dismissals (leaving only Case

402Nos. 96-4059 and 96-4060 to be decided) and the case was

413transferred to the undersigned.

417At final hearing, Lake City Nursing Homes, Inc., ("Lake

427City") called three witnesses: Joseph D. Mitchell, expert in

437health care accounting; Michael Foxworthy, expert in health care

446management; and, Jim White, expert in health care planning and

456CON review. Lake City's Exhibit 1, consisting of its entire CON

467application, was admitted into evidence.

472Home Health Care Services ("HHCS,") called three witnesses:

482Lois Adams, expert in health care management; Darryl Weiner,

491expert in health care finance; and Sharon Gordon-Girvin, expert

500in health care planning. HHCS offered five exhibits, all of

510which were admitted into evidence.

515The Agency called two witnesses: Roger Bell, expert in

524health care finance; and Cheryl Clark, expert in CON review. The

535Agency offered six exhibits, all admitted into evidence.

543Proposed recommended orders were submitted by all three

551parties on March 21, 1997.

556FINDINGS OF FACT

559The Parties

5611. Home Health Care Services d/b/a SouthMed Health Care, if

571operational, will be part of the HHCS Health Group. The group

582includes a number of interrelated medical corporations under the

591HHCS umbrella. Among them are these: the Cystic Fibrosis

600Pharmacy, Inc.; the HHCS Pharmacy; the Special Pulmonary Care

609Center; the HHCS Research Institute, Inc.; and the Center for

619Environmental and Industrial Medicine, Inc. HHCS also operates

627home health care agencies in Melbourne, Rockledge, Tampa, Port

636Charlotte, and Sarasota.

6392. Lake City Nursing Homes, Inc., is the owner and licensee

650of Lake City Extended Care Center, a 60-bed nursing facility in

661Columbia County, Florida. It is a provider currently of home

671health care for Medicaid recipients and private payors though its

681licensed home health agency located adjacent to the nursing home.

691By the CON application at issue in this proceeding, Lake City

702proposes to provide skilled nursing home based Medicare certified

711home health agency services as well.

7173. The Agency for Health Care Administration is the "single

727state agency [designated by statute] to issue . . . or deny

739certificates of need . . . in accordance with the district plans,

751the statewide health plan and present and future federal and

761state statutes." Section 408.034(1), Florida Statutes.

767Service Planning Area and Existing Providers

7734. AHCA District III consists of sixteen counties:

781Hamilton, Suwannee, Lafayette, Dixie, Columbia, Gilchrist, Levy,

788Union, Bradford, Putnam, Alachua, Marion, Citrus, Hernando,

795Sumter, and Lake.

7985. At the time of the submission of the applications at

809issue in this proceeding, there were twenty-nine existing

817Medicare certified home health agencies in District III.

8256. HHCS proposes to target a group of patients none of the

837other existing providers presently target. In another approach,

845Lake City proposes a nursing-home based, Medicare certified home

854health agency. Other than Lake City's existing non-Medicare

862certified agency, none of the existing providers are nursing-home

871based. In relation to the existing providers, therefore, Lake

880City and HHCS propose unique opportunities for home health care

890services in District III.

894HHCS' Application

8967. HHCS' application is targeted to a group of patients in

907District III not presently receiving services which rise to the

917level of their need. The group consists of post-transplant

926patients and patients with cystic fibrosis, chronic obstructive

934pulmonary disease ("COPD"), and diabetes.

9418. Targeting this group does not diminish HHCS' intent to

951provide home health care to others in District III in need. HHCS

963has agreed to condition the granting of the CON on providing 8

975percent Medicaid and 2 percent charity care with no limit on the

987number of Medicaid patients it will serve.

9949. HHCS offers to provide services not commonly provided by

1004other home health agencies. Among them are blood transfusions,

1013home x-ray, on-line EKG communication with physician, organ

1021transplantation support and care, Picasso system

1027telecommunications with physician, and high-tech pharmacy service

1034such as intravenous/infusion services, aerosolized pentamidine

1040therapy, and complete HIV home care.

104610. In providing these sophisticated services, HHCS will

1054use an integrated team approach to home health care involving

1064various professionals in health care and health management.

1072Lake City's Application

107511. If Lake City's applic ation were granted, it would make

1086Lake City the fourth home health agency in Lake County and the

1098only home health agency in District III to be nursing-home based.

110912. By combining a Medicare certified home health agency

1118with its existing nursing home, Lake City will improve the case

1129management of its patients because such an arrangement offers

1138vertical integration within a continuum of care. Vertical

1146integration within a continuum of care promotes stability of

1155personnel and providers who work with the patients. In turn,

1165this organizational method provides potential for improving

1172recovery from illness and higher quality of management of the

1182patient and the patient's illness.

1187Need Projections

118913. The Agency's methodology for determining need for home

1198health agencies was declared invalid in 1993. At present, there

1208is no Agency rule containing a home health agency need

1218methodology.

121914. In the absence of a need methodology by rule, the

1230applicants took different approaches to projecting need.

123715. HHCS pr ojected need based upon previous studies of

1247efficient agency size.

125016. HHCS identified four groups of Medicare patients (AIDS,

1259COPD, cystic fibrosis, and diabetes) who, either because of age

1269or disability, are chronic or long-term users of home health care

1280services. HHCS looked at hospital discharges for those four

1289categories to determine post-hospital placement. About an equal

1297number of patients were referred to long-term facilities as were

1307being referred to home health agencies. HHCS' application is

1316geared to steering patients out of more expensive long-term care

1326facilities and into care at home.

133217. Lake County has a use rate for home health higher than

1344that of all of District III. Its use rate is also higher than

1357the State's as a whole. Over a three-year period, home health

1368visits in District III grew by 16 percent, whereas visits

1378statewide grew by only 4 percent.

138418. Lake County uses home health services and continues to

1394use them at a very high rate. Additional services are needed in

1406order to sustain and meet the demand within the county and the

1418District as a whole. Previous studies, moreover, have shown that

1428all economies of scale are realized at around 30,000 visits per

1440year. HHCS used 30,000 visits per year as an appropriate agency

1452size to yield a need in the District for at least five new

1465agencies.

146619. With the modification of a lower growth rate to make it

1478more conservative, Lake City, on the other hand, utilized a need

1489methodology put to use by a successful Medicare certified home

1499health agency applicant for five Medicare certified home health

1508agency CONs in the prior batching cycle.

151520. The Lake City methodolgy took the population of seniors

1525(age 65 and over) in the district and projected that population

1536forward through 1998 based on state population data. It then

1546calculated the percentage of increase in population of seniors

1555and the total number of visits provided in the district and

1566projected the percent of increase in visits from 1991 through

15761994 forward on through 1998. Lake City projected its increase

1586in total visits utilizing an 11.5 percent growth rate in the

1597number of visits which is conservative considering that the

1606average growth rate per year from 1991 to 1994 was 31.7 percent.

1618Lake City also identified a yearly increase of more than 20

1629percent in the rate of use of home health services due to the

1642emphasis on managed care and less costly health care services.

1652Inflating a conservative increase in the use rate of 20 percent

1663forward, Lake City projected the number of visits that would be

1674provided by existing agencies and subtracted that number from the

1684total number of projected visits, leaving a total number of

1694unserved visits. Dividing the number of unserved visits by the

1704average agency size in District III, Lake City came up with a net

1717need of 9.62 agencies in the horizon year of 1997.

172721. The methodologies of both HHCS and Lake City are fair

1738and reasonable health planning methodologies.

174322. Lacking a need methodology, the Agency set forth eight

1753criteria it suggested should be addressed in applications for

1762Medicare certified home health agency CONs. These policies

1770relate generally to access and require the showing of some type

1781of access problem. Normally, however, need should not be

1790determined on the basis of access problems alone.

179823. Both applicants demonstrated District III's need in the

1807planning horizon year for more than two agencies, the number of

1818applicants in this proceeding. There is, therefore, a need for

1828at least two more Medicare certified home health agencies in

1838District III.

1840State and Local Health Plans

184524. The HHCS proposal is supported by the preferences in

1855the District Health Plan. HHCS is an exemplary provider of care

1866for persons with AIDS and it has committed to Medicaid and

1877indigent care in excess of that suggested by the plan. HHCS will

1889provide more than the full range of services suggested by the

1900plan.

190125. For the same reasons it meets the preferences in the

1912local plan, HHCS' application is supported by the preferences in

1922the State Health Plan. In addition to those reasons, the

1932application complies with the State Health Plan preferences for

1941an applicant that proposes to serve counties presently

1949underserved by home health care agencies; will provide consumer

1958satisfaction data to the Agency; and has a comprehensive quality

1968assurance program and is proposing to be accredited by the Joint

1979Commission on Accreditation of Healthcare Organizations

1985("JCAHO").

198826. Lake City's application is also supported by

1996preferences in the District Health Plan. It has a history of

2007providing a high percentage of Medicaid patient days at its

2017nursing facility. This history backs up its commitment to

2026provide a minimum of 1 percent annual visits to indigent care and

20385 percent of annual visits to care of Medicaid patients, a

2049commitment evidenced by its willingness to condition the grant of

2059its CON on the percentages of annual visits it promises to

2070indigent and Medicaid patients.

207427. Likewise, Lake City 's application is supported by

2083preferences in the State Health Plan. It has agreed to condition

2094its CON on providing care to AIDS patients. It will provide the

2106entire range of services usually provided by a home health care

2117agency. It is willing to condition its CON on cooperation with

2128data collection efforts. Finally, it is willing to condition the

2138grant of its CON on the provision of a comprehensive quality

2149assurance program as well accreditation by the JCAHO.

2157Availability, Access, Appropriateness and

2161Adequacy of Like and Existing Health Care Services

216928. HHCS' application complies with the statutory

2176requirements of Section 408.035(1)(b), Florida Statutes, in that

2184it increases the availability and access to home health care in

2195the District.

219729. HHCS will offer programs and services which presently

2206are not readily available in District III. This will increase

2216the availability of these services to the patients of the

2226District and, in particular, to the patients of Lake County.

2236Thus, geographic access is enhanced.

224130. HHCS' application also enhances acce ss for those

2250without means to gain access to home health care through its

2261commitment to indigent care.

226531. It improves, too, the adequacy of services in the

2275District through its targeting of a group presently underserved

2284in the District.

228732. HHCS' proposal meets the requirements of the health

2296care access criteria contained in Rule 59C-1.030(2)(a)(b) and

2304(d), Florida Administrative Code. It provides services to all

2313those who need care and participates in the Medicare and Medicaid

2324programs. HHCS does not discriminate on the basis of race,

2334ethnicity, or gender.

233733. Because Lake City is not targeting an underserved group

2347in the manner of HHCS, its application addresses the issues of

"2358availability and access" somewhat differently. To the extent

2366there is a need for new providers of home health care, granting

2378Lake City's CON will provide better availability and access to

2388those in need of home health services. Likewise, Lake City's

2398willingness to condition its application on service to AIDS,

2407indigent and Medicaid patients will only improve availability and

2416access to home health care services in the district

2425Quality of Care

242834. HHCS conducts mock accreditation surveys to determine

2436whether it is meeting the appropriate standards for quality of

2446care. HHCS has an outside advisory board that does performance

2456improvement and quality assurance review. There is also a

2465utilization review committee and each office has full time

2474quality assurance staff, quality management meetings, and

2481quarterly reports to the Board of Directors.

248835. HHCS' team approach will enhance the quality of care as

2499well as being cost effective. Its approach to treatment of HIV

2510patients won for HHCS a contract with the Orange County Public

2521Health Unit to provide complete HIV service to its patients.

253136. HHCS also measures patient satisfaction with services.

2539Every patient is notified 48 hours after admission to the agency

2550to make sure they were informed of precisely what to expect from

2562the agency. Patients are contacted 30 days after admission and

2572given an evaluation form. Survey forms are also sent out upon

2583discharge and three months after discharge.

258937. The other home health agencies operated by HHCS are

2599accredited with commendation by JCAHO and HHCS intends to seek

2609JCAHO accreditation if granted a CON.

261538. The Lake City facility is managed by HealthPrime, a

2625long term care management company which manages facilities for

2634itself and others and which has been successful in improving

2644distressed facilities. Since the commencement of its management

2652of the Lake City facility, the facility has been recommended for

2663a superior rating.

266639. HealthPrime has shown through its operation of the Lake

2676City facility and other nursing homes in Florida, all of which

2687have superior ratings, that it has the ability to provide quality

2698of care.

270040. In addition, HealthPrime, which will actually operate

2708the home health agency, has experience operating three other

2717nursing home based, home health agencies.

272341. HealthPrime will use its quality assurance prog rams

2732already in place in its other home health agencies and will seek

2744JCAHO accreditation of the Lake City agency, if the CON is

2755granted.

275642. To show its commitment to assuring quality of care,

2766Lake City is willing to condition its CON on the understanding

2777that it will not contract with other non-Medicare certified home

2787health agencies to provide any of its services.

2795Availability and Adequacy of Alternatives

280043. There is no adequate alternative to the HHCS proposal

2810because of the applicant's targeting of the management of certain

2820chronic illnesses. HHCS sees some of the targeted clients for

2830management of cystic fibrosis already, but it is limited in its

2841ability to serve these patients effectively without a physical

2850presence in the District. For these patients to receive the full

2861complement of home health care services HHCS is capable of

2871rendering, there is no alternative save approval of its

2880application.

2881Economies and Improvements from Joint or Shared Services

288944. There are nine related companies with in the HHCS Health

2900Group. They include pharmacies which can deliver medications

2908directly to the patient and can provide consultation with a

2918doctor of pharmacy. This ensures compliance and dramatically

2926increases therapeutic outcomes.

292945. Joint companies typically provide for economies and

2937efficiencies and lead to the most cost-effective service.

294546. Lake City's proposal to operate a nursing home based,

2955home health agency not only offers a continuum of care for the

2967patient but also provides fiscal economies to the agency as well

2978as the Medicare program.

298247. By providing skilled, nursing-facility based Medicare-

2989certified, home health care, the Lake City facility can broaden

2999its community base and provide cost-efficient services to the

3008community.

300948. Under the arrangement proposed by Lake City, the home

3019health agency, in practice, becomes a department of the nursing

3029facility, providing a continuum of care and individual case

3038management for the patient. Through case management, Lake City

3047can help an individual through the various levels of care

3057available.

305849. Case management helps the individual gain access to

3067health care, making the process easier and less stressful. Case

3077management poses potentials for containing cost and providing the

3086best quality of care at the least cost.

3094Financial Feasibility

3096i. Short Term

309950. HHCS has projected the cost of its project at $92,392.

3111The projection is based on historical information and actual

3120vendors used by HHCS. Some of the expenditures, such as

3130consultants and attorney's fees, have already been spent.

313851. HHCS intends to fund the $92,000 projected costs of the

3150project through cash from operations and does not intend to seek

3161any bank financing. If there is a need for financing, it is

3173available as evidenced by the letter from the bank contained in

3184the application. The letter is typical of letters banks issue

3194when projects are merely proposed. The Agency has approved

3203projects with similar letters of interest to support the capital

3213requirements of a project.

321752. HHCS also has a line of credit for $600,000 and an

3230equipment loan of $196,000, of which only $66,000 has been used.

3243The line of credit was reduced by funds from operations from

3254$125,000 on December 31, 1994, to $12,000 on April 25, 1995.

326753. Schedule 2 in the HHCS application lists other planned

3277projects which require capital expenditures. These projects

3284would be funded by a line of credit, assistance from the bank,

3296and internal operations.

329954. HHCS' proposal is financially feasible in the short

3308term. HHCS has the ability to secure funds necessary to

3318capitalize the project and to secure any necessary working

3327capital during the first year of operation.

333455. HHCS has demonstrated its ability to fund this project

3344and all the projects on Schedule 2 in its pro forma sheet.

3356Schedule 8A shows what would happen if all the projects listed on

3368Schedule 2 actually occurred and what would be the financial

3378impact on HHCS. Even if all the projects were completed, the

3389cash available from operations is sufficient to fund the project.

339956. As for Lake City, AHCA raised questions about its weak

3410financial status as a developmental stage corporation. But at

3419hearing, AHCA acknowledged that Lake City would be financially

3428feasible in the short term.

343357. While Lake City is a developmental stage company with

3443limited cash investment, it is a heavy Medicaid provider. There

3453are disincentives for such providers to keep large amounts of

3463cash in equity. Lack of equity causes AHCA legitimate concerns.

3473The concerns are dispelled by the personal guarantee by the

3483owners of the company of the company's debt since the owners have

3495sufficient assets to support their guarantees.

350158. In analyzing the financial strength of a nursing home

3511that provides a high percentage of Medicaid-reimbursed care, it

3520is necessary to determine whether the facility's fixed costs are

3530covered by Medicaid payments and whether the facility has an

3540adequate patient census. In the case of Lake City, both of these

3552factors are positive.

355559. In addit ion, HealthPrime has made available a $200,000

3566loan to Lake City for this project. The loan commitment, by

3577itself, is more than sufficient to cover the $77,014 start up

3589cost of the Lake City proposed project.

3596ii. Long Term

359960. HHCS' proposal demonstrated long term financial

3606feasibility. The applicant's projections are conservative and

3613the volume projections are easily achievable given the historical

3622experience of HHCS and District III.

362861. The projected revenues contained on HHCS' Schedule 7

3637and the volume projections utilized in Schedule 5 are reasonable.

3647AHCA found the volume projections to be achievable.

365562. The projected expenses for the proposed project are

3664contained on HHCS' Schedule 8B. While AHCA criticized the format

3674of this schedule, it concedes that it was not unauthorized.

3684Direct patient care expense and other expenses can be determined

3694to allow for a review as to reasonableness. Schedule 8B is based

3706upon historical expense information; it contains all of the

3715necessary expense items and is reasonable.

372163. AHCA similarly found that since HHCS' projections were

3730reasonable for a new home health agency, the conclusion of

3740financial feasibility in the long-term is reasonable.

374764. Lake City's assumptions in its financial projections

3755were based on actual experience in the operation of similar

3765skilled nursing facility based home health agencies, as well as

3775experience of other home health agencies in their first two years

3786of operation. The reasonableness of Lake City's financial and

3795operational projections were undisputed at hearing and AHCA's

3803financial expert acknowledged that the proposed project would be

3812financially feasible in the long term

3818Resource Availability

382065. Neither HHCS nor Lake City will have any problem in

3831hiring sufficient personnel for their agencies.

3837Efficiency

383866. HHCS' specialty team approach to home health results in

3848fewer total visits and better outcomes at lower cost. HHCS

3858operates a highly effective, cost efficient agency.

386567. As for the efficiency of Lake City's proposal, skilled

3875nursing home-based Medicare certified home health agencies are

3883specifically recognized by the Federal Medicare program in their

3892cost reports. Home health costs are filed as a part of the

3904nursing home cost report and there is an allocation of the

3915nursing home's cost to the home health agency.

392368. A joint nursing home/home health agency operation

3931benefits both the provider and the Medicare program through cost

3941savings. In fact, HealthPrime has found the efficiencies of a

3951skilled nursing home-based Medicare certified home health agency

3959to be great enough to allow the home health agency to operate

3971under the Medicare reimbursement cap.

3976Projects Impact on Costs

398069. The approval of additional home health agencies in

3989District III will foster competition among existing providers.

3997HHCS is cost effective with a projected cost per visit of $67.55.

4009Utilization of its related companies will not only promote a

4019continuum of care but will also lead to cost effectiveness.

402970. Lake City's projected Medicare rate for 1997 will be

4039substantially less than the District III average 1994 rates of

4049existing home health agencies. This provides a cost savings to

4059the state since it helps reduce Medicaid costs as well.

4069CONCLUSIONS OF LAW

407271. The Division of Administrative Hearings has

4079jurisdiction over the subject matter and the parties. Sections

4088120.57(1) and 408.039(5), Florida Statutes.

409372. The applicants have the burden of demonstrating that

4102their applications should be granted. Boca Raton Artificial

4110Kidney Center v. Department of Health and Rehabilitative

4118Services , 475 So. 2d 260 (Fla. 1st DCA 1985). The award of a

4131Certificate of Need must be based on a balanced consideration of

4142statutory and rule criteria. Department of Health and

4150Rehabilitative Services v. Johnson Home Health Care, Inc ., 447

4160So. 2d 361 (Fla. 1 st DCA 1994); Balsam v. Department of Health

4173and Rehabilitative Services , 486 So. 2d 1341 (Fla. 1 st DCA 1988).

4185The weight to be given each criterion is not fixed but varies

4197depending on the facts of each case. Collier Medical Center,

4207Inc., v. State, Department of Health and Rehabilitative Services ,

4216462 So. 2d 83 (Fla. 1 st DCA 1985).

422573. The Agency for Health Care Administration argues

4233primarily that the applications fail for two reasons: first,

4242neither demonstrated that there was a need for the proposal; and

4253second, neither demonstrated a problem with availability, quality

4261of care or accessibility of the existing Medicare-certified home

4270health agencies in the district or that existing agencies are

4280over-utilized and experiencing volume constraints.

428574. To the contrary, both applicants, using fair and

4294reasonable methodologies in the absence of a methodology

4302sanctioned by rule, established that there was a need for at

4313least two more home health agencies in District III.

432275. As for access to well-utilized existing providers that

4331provide good quality of care, AHCA is right in the case of Lake

4344City; this applicant did not prove that there is a problem with

4356access to the services it hopes to offer in District III. But

4368there is no AHCA rule that declares that the paramount

4378consideration in cases involving applications for Medicare

4385certified home health agencies is whether there is a problem with

4396access to existing providers. Furthermore, both parties proved

4404that access to residents of District III in need of home health

4416services will improve if these two Medicare certified home health

4426agency CONs are granted.

443076. As for the accessibility issue in relation to HHCS,

4440HHCS proved that accessibility to needed home health services

4449will improve for a part of the discrete group targeted by its

4461application: patients with cystic fibrosis. For the others

4469targeted by HHCS, post-transplant patients, and patients with

4477chronic pulmonary disease and diabetes, granting HHCS a CON will

4487increase the access of these patients to the sophisticated

4496services HHCS has to offer in a home health setting.

450677. Just as granting HHCS' application will improve patient

4515care of home health patients in District III, so will granting

4526Lake City's application because of its uniqueness in District III

4536as a nursing home based, Medicare certified home health agency.

454678. Finally, both applicants, on balance, meet the

4554applicable and rule and statutory criteria for the granting of

4564their applications.

4566RECOMMENDATION

4567Based on the foregoing findings of fact and conclusions of law,

4578it is recommended that the Agency for Health Care Administration

4588grant CON applications 8387 and 8386 filed by Home Health Care

4599Services d/b/a SouthMed Health Care and Lake City Nursing Homes,

4609Inc., respectively.

4611DONE AND ENTERED this 27th day of June, 1997, in

4621Tallahassee, Leon County, Florida.

4625___________________________________

4626DAVID M. MALONEY

4629Administrative Law Judge

4632Division of Administrative Hearings

4636The DeSoto Building

46391230 Apalachee Parkway

4642Tallahassee, Florida 32399-3060

4645(904) 488-9675 SUNCOM 278-9675

4649Fax Filing (904) 921-6847

4653Filed with the Clerk of the

4659Division of Administrative Hearings

4663this 27th day of June, 1997.

4669COPIES FURNISHED:

4671Cynthia S. Tunnicliff, Esquire

4675Pennington Culpepper Moore

4678Wilkinson Dunbar and Dunbar PA

4683Post Office Box 10095

4687Tallahassee, Florida 32303-2095

4690Theodore E. Mack, Esquire

4694Cobb Cole and Bell

4698131 North Gadsden Street

4702Tallahassee, Florida 32301

4705Richard Patterson, Esquire

4708Agency for Health Care Administration

4713Fort Knox Building 3, Suite 3431

47192727 Mahan Drive

4722Tallahassee, Florida 32308-5403

4725Jerome W. Hoffman, General Counsel

4730Agency for Health Care Administration

4735Fort Knox Building 3

47392727 Mahan Drive

4742Tallahassee, Florida 32308-5403

4745Sam Power, Agency Clerk

4749Agency for Health Care Administration

4754Fort Knox Building 3, Suite 3431

47602727 Mahan Drive

4763Tallahassee, Florida 32308-5403

4766NOTICE OF RIGHT TO SUBMIT EXCEPTIONS

4772All parties have the right to submit written exceptions within 15

4783days from the date of this recommended order. Any exceptions to

4794this recommended order must be filed with the agency that will

4805issue the final order in this case.

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Date
Proceedings
Date: 09/18/1997
Proceedings: Final Order filed.
PDF:
Date: 09/17/1997
Proceedings: Agency Final Order
PDF:
Date: 09/17/1997
Proceedings: Recommended Order
Date: 07/02/1997
Proceedings: (From T. Mack) Notice of Change of Address filed.
PDF:
Date: 06/27/1997
Proceedings: Recommended Order sent out. CASE CLOSED. Hearing held January 8, 9 and 10, 1997.
Date: 03/21/1997
Proceedings: Home Health Care Services d/b/a Southmed Health Care`s Proposed Recommended Order filed.
Date: 03/21/1997
Proceedings: Respondent`s Proposed Recommended Order filed.
Date: 03/21/1997
Proceedings: Lake City Nursing Homes` Proposed Recommended Order filed.
Date: 03/05/1997
Proceedings: Order sent out. (PRO`s due by 3/21/97)
Date: 02/28/1997
Proceedings: Motion for Extension of time (Respondent) filed.
Date: 02/25/1997
Proceedings: Notice of Filing; DOAH Court Reporter Final Hearing Transcripts (Volumes 1 thru 4, tagged) filed.
Date: 01/08/1997
Proceedings: CASE STATUS: Hearing Held.
Date: 01/03/1997
Proceedings: Amended Notice of Hearing sent out. (hearing set for Jan. 8-10 & 13th, 1997; 10:00am)
Date: 12/31/1996
Proceedings: (Signed by R. Patterson, C. Tunnicliff, T. Mack) Prehearing Stipulation; Lake City Nursing Homes, Inc.`s Witness and Exhibit List; AHCA Witness and Exhibit Lists; Witness and Exhibit List of Home Health Care Services, d/b/a Southmed Health Care filed.
Date: 12/30/1996
Proceedings: (Home Health) Notice of Voluntary Dismissal (filed via facsimile).
Date: 09/11/1996
Proceedings: Prehearing Order and Order of Consolidation sent out. (Consolidated cases are: 96-4057, 96-4058, 96-4059 & 96-4060)
Date: 08/30/1996
Proceedings: Notification card sent out.
Date: 08/28/1996
Proceedings: Notice of Related Petitions (96-4057, 96-4058, 96-4059, 96-4060); Notice; Petition for Formal Administrative Proceedings filed.

Case Information

Judge:
DAVID M. MALONEY
Date Filed:
08/28/1996
Date Assignment:
12/27/1996
Last Docket Entry:
09/18/1997
Location:
Tallahassee, Florida
District:
Northern
Agency:
ADOPTED IN TOTO
Suffix:
CON
 

Related Florida Statute(s) (4):

Related Florida Rule(s) (1):