Federal Property Management Corp. v. Department of Health and Rehabilitative Services
| Decision Date | 20 January 1986 |
| Docket Number | BE-354,BE-360 and BE-414,Nos. BE-346,s. BE-346 |
| Citation | 482 So.2d 475,11 Fla. L. Weekly 223 |
| Parties | 11 Fla. L. Weekly 223 FEDERAL PROPERTY MANAGEMENT CORP., Richmond Healthcare, Inc., Healthcare and Retirement Corp. of America, and Health Quest Corp., Appellants, v. DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, Appellee. |
| Court | Florida District Court of Appeals |
Robert D. Newell, Jr., P.A., Tallahassee, for FPMC.
Richard G. Coker, Jr., Fort Lauderdale, for Richmond.
Alfred W. Clark, Laramore & Clark, P.A., Tallahassee, for Health Care & Retirement Corp.
Charles M. Loeser, Asst. Gen. Counsel, South Bend, Ind., for Health Quest Corp.
Jay Adams, Deputy Gen. Counsel, Dept. of Health and Rehabilitative Services, Tallahassee, for appellee.
The appellants in these consolidated appeals seek review of a final order of the Department of Health and Rehabilitative Services (HRS) denying their applications for Certificates of Need. We affirm in part, reverse in part and remand the order to HRS for a proper application of its need methodology formula.
Appellant Federal Property Management Corporation filed an application for a certificate of need seeking to construct a 240-bed nursing home facility in Broward County; appellant Richmond Healthcare, Inc. applied for a certificate of need for 240 nursing home beds in Broward County; appellant Health Care and Retirement Corporation of America applied for a certificate of need for 120 nursing home beds in Broward County; and appellant Health Quest Corporation applied for a certificate of need for 180 nursing home beds in Broward County. Following HRS denial of the applications, appellants filed a request for a formal administrative hearing pursuant to Section 120.57, Florida Statutes.
The cases were assigned to a Division of Administrative Hearings officer and, upon motion of HRS, the cases were consolidated. After many continuances, a final hearing was held in Fort Lauderdale on January 23 to 27, 1984. The primary issue at the hearing, and on this appeal, was whether there exists sufficient evidence of exceptional circumstances in Broward County to warrant the addition of nursing home beds beyond the projected bed need established through application of the bed need methodology set forth in Florida Administrative Code Rule 10-5.11(21).
Appellants presented extensive testimony and evidence that demonstrated, among other things: (1) that Broward County has the highest percentage of persons aged 75 and over of any county in the state (35.4% in Broward County as opposed to 6.5% statewide); (2) that 70% of nursing home use comes from the 75 and over age group; (3) that the HRS need methodology encompasses all persons aged 65 and over, without an adjustment for the age 75 and over category; (4) that the new Medicare regulations which structure reimbursement on Diagnostically Related Groups will result in shorter stays in acute care hospitals and will increase the need for community nursing home beds; (5) that approximately 90 licensed nursing home beds in Broward County have been taken out of service, which has the effect of lowering costs of operation and permits the operators to increase the rates charged for nursing home care; (6) that some nursing home facilities in Broward County cater exclusively to private pay patients; (7) that HRS personnel experience some difficulty in finding nursing home placements for Medicaid patients in Broward County, therefore Medicaid patients remain in acute care hospital beds while awaiting nursing home beds; and (8) that HRS has improperly characterized three facilities as nursing home facilities for purposes...
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