Appeal of Presentation Sisters, Inc.

• Decision Date: 10 January 1991
• Docket Number: Nos. 17151,17152,s. 17151
• Citation: 471 N.W.2d 169
• Parties: In the Matter of the Appeal of PRESENTATION SISTERS, INCORPORATED, d/b/a McKennan Hospital, a Charitable Corporation. In the Matter of the Appeal of PRESENTATION SISTERS, INCORPORATED, d/b/a St. Joseph Hospital, a Charitable Corporation. . Considered on Briefs
• Court: South Dakota Supreme Court

Page 169

471 N.W.2d 169

In the Matter of the Appeal of PRESENTATION SISTERS INCORPORATED, d/b/a McKennan Hospital, a Charitable Corporation In the Matter of the Appeal of PRESENTATION SISTERS INCORPORATED, d/b/a St. Joseph Hospital, a Charitable Corporation.

Nos. 17151, 17152.

Supreme Court of South Dakota.

Considered on Briefs Jan. 10, 1991.

Decided May 29, 1991.

Rehearing Denied June 25, 1991

in No. 17151.

Dennis Groff, Rapid City, for appellant Pennington County.

David Bradsky, Rapid City, for appellees McKennan Hosp. and St. Joseph Hosp.

PER CURIAM.

The Pennington County Board of County Commissioners (Commissioner) unanimously rejected St. Joseph's Hospital of Mitchell (St. Joseph) and McKennan Hospital of Sioux Falls (McKennan) requests for reimbursement for the emergency hospitalization of indigent Duane H. Ehresmann (Ehresmann). The circuit court granted St. Joseph and McKennan's motions for summary judgment, holding that since each hospital substantially complied with the notice requirements of SDCL 28-13-34.1 Pennington County was liable for the cost of Ehresmann's hospitalization. At issue is the adequacy of the notices. We hold that each notice did not strictly comply with SDCL 28-13-34.1 and therefore reverse.

FACTS

Ehresmann is an indigent resident of Pennington County. He was admitted to St. Joseph on June 22, 1988, for the treatment of an acute cerebral vascular accident (a stroke). Pursuant to SDCL 28-13-34.1 St. Joseph mailed the following "Notice of Hospitalization" to the Pennington County auditor on June 27, 1988:

                                           NOTICE OF HOSPITALIZATION
                -------------------------------------------------------------------------------
                Pursuant to SDCL 28-13, this notice must be mailed to the County Auditor within
                  fifteen (15) days in case of an emergency admission or within seven (7) days
                  in the case of a non-emergency admission._____________ Hospital herewith
                  provides you notice of hospitalization of the following patient
                Patient Name: Duane Ehresmann          Adm.  Date: 6/22/88
                               --------------------                -------
                Last Known Address: 125 Denver, Lot 16 Rapid City, SD
                                     -----------------------------------
                If the Patient is a Minor or Under a Guardianship
                Patient's Guardian: ___________________________________________________________
                Address of Patient's Guardian: ________________________________________________
                Name and Address of Responsible Party, if known: ______________________________
                _______________________________________________________________________________
                Attending Physician: Dr. L. Margallo
                                     --------------------
                Nature and Degree of Severity of Illness: Cerebral Vascular Accident
                                                          -------------------------------------
                Anticipated Diagnostic or Therapeutic Services: _______________________________
                _______________________________________________________________________________
                Location of Services: St. Joseph Hospital
                                       -------------------
                Estimated Cost of Services: $7500.00
                                            ----------
                Dated at Mitchell, South Dakota this 27 day of June 1988.
                 St. Joseph Hospital                   By: /s/ signature
                                                       ----------------------------------------
                                            CERTIFICATE OF SERVICE
                -------------------------------------------------------------------------------
                    I, Deb Kaufman of St. Joseph Hospital, hereby certify that I mailed the
                  original of this Notice of Hospitalization to the Pennington County Auditor's
                  office on the 27 day of June, 1988, in a sealed envelope with first class
                  postage theron fully prepaid, and addressed as follows:
                                                       Pennington County Commissioners
                                                       ----------------------------------------
                                                       Courthouse
                                                       Rapid City, SD 57701
                                                       ----------------------------------------
                                                       ----------------------------------------
                Dated at Mitchell South Dakota this 27 day of June, 1988.
                                                       /s/ signature
                                                       ----------------------------------------
                

The form for this notice originated from the South Dakota Hospital Association. The information about Ehresmann on the form was taken from the admitting form compiled by the admitting clerk and the census report provided by the nursing supervisor. The person who prepared the notice of hospitalization purposely left the space after "Anticipated Diagnostic or Therapeutic Services" blank assuming that the hospital would do everything possible to stabilize Ehresmann. She normally did not fill in this blank.

On July 6, 1988, Ehresmann was admitted to McKennan's rehabilitation center for an intensive in-patient rehabilitation program to treat his right side paralysis, severe speech impairment, and severe asphasia. He was discharged from McKennan on August 30, 1988.

In accordance with SDCL 28-13-34.1, supra, McKennan sent the Pennington County auditor this "Notice of Hospitalization" on July 13, 1988:

NOTE: OPINION CONTAINS TABLE OR OTHER DATA THAT IS NOT VIEWABLE

This notice was compiled from forms prepared by doctors and nurses. The compiler did not, however, discuss Ehresmann's case with his physician. The cost estimate was thought to be an adequate estimate at the time the notice form was completed.

The commission denied each hospital's request for reimbursement. Because St. Joseph's notice did not delineate the anticipated diagnostic or therapeutic services Ehresmann might require, the commission believed it could not make a determination about Ehresmann's course of treatment. Likewise, the commission believed McKennan's notice of hospitalization did not specify the anticipated diagnostic or therapeutic services and did not provide a bona fide estimate of the cost of the services.

The circuit court reversed, holding that each notice substantially complied with the requirements of SDCL 28-13-34.1. It awarded St. Joseph $9,944.32 plus $2,588.10 in prejudgment interest. It awarded McKennan $20,257.49 plus prejudgment interest.

ISSUE

WHETHER THE NOTICES PROVIDED BY ST. JOSEPH AND MCKENNAN

COMPLY WITH THE NOTICE OF HOSPITALIZATION

REQUIREMENTS OF SDCL 28-13-34.1.

In both appeals there is no dispute that Ehresmann is indigent and that his hospitalization in each hospital was on an emergency basis. There is also no dispute that each hospital sent Pennington County a notice of emergency hospitalization within the 15 day requirement of SDCL 28-13-34.1. The question is whether the contents of the notice of hospitalization complied with the requirements of SDCL 28-13-34.1.

Every county has a duty to support indigents residing within its boundaries. SDCL 28-13-1. This duty flows from statute, not from the common law. Sioux Valley Hospital Ass'n v. Bryan, 399 N.W.2d 352 (S.D.1987). In South Dakota, counties have a specific duty to provide hospitalization, medical care, and treatment for poor persons. Id., SDCL 28-13-27, Jerauld County v. Saint Paul-Mercury Indemnity Co., 76 S.D. 1, 71 N.W.2d 571 (1955). Since the expenditure of public funds is involved this court has strictly construed the statutes dealing with the reimbursement of expenses for indigent emergency care. Sioux Val. Hospital Ass'n v. Davison County, 298 N.W.2d 85 (S.D.1980); In Re Certification of Question of Law, 402 N.W.2d 340, 344 (S.D.1987), Morgan, J., concurring specially ("I agree with the strict interpretation of the statutory scheme for reimbursement of expenses for emergency care of the indigents as evidenced by the earlier cases cited in the majority opinion."); 87-26 Op. Att'y Gen. 68, 70 (1987) ("That these statutes will be strictly construed is apparent"); But see Sioux Valley Hosp. Ass'n v. Tripp County, 404 N.W.2d 519, 523 (S.D.1987), Sabers, J., dissenting and applying a "substantial compliance" standard.

Hospitals admitting indigents may be reimbursed for expenses by the indigent's county of residence, if the hospital complies with the procedural requirements set forth in SDCL ch. 28-13. Bryan, supra. One of these requirements is that the hospital must provide the county with a notice of emergency hospitalization containing, at the time of this action, seven statutory elements: 1) the name and last known address of the patient or the patient's guardian; 2) the name and address of the responsible party, if known;...