Shared Services, Inc. v. State Dept. of Health and Rehabilitative Services, AI-453
| Decision Date | 07 January 1983 |
| Docket Number | No. AI-453,AI-453 |
| Citation | 426 So.2d 56 |
| Parties | SHARED SERVICES, INC., Appellant, v. STATE of Florida DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, Appellee. |
| Court | Florida District Court of Appeals |
Charles B. Carter of Jones & Langdon, Gainesville, for appellant.
Eric Haugdahl, Asst. Gen. Counsel for Department of Health and Rehabilitative Services, Tallahassee, for appellee.
In this appeal from a final order of the Department of Health and Rehabilitative Services ("HRS"), Shared Services, Inc. ("Shared Services") contends HRS erred in determining that it lacked standing to request a formal hearing on the application of Shands Teaching Hospital ("Shands") for licensure to operate an air ambulance service and certification of Shands as an advanced life support provider. Shared Services also asserts HRS erred in stating, in the final order, that the issue of duplication of services had been resolved through Shands obtaining certificates of public convenience and a certificate of need.
Shared Services petitioned HRS for a formal administrative hearing to review the licensure of Shands to operate an air ambulance service and the certification of Shands as an advanced life support (ALS) provider. In the petition it was alleged that Shared Services was already licensed to operate a rescue helicopter with ALS certification in some 12 counties and that Shands proposed to operate its service in these counties in direct competition with Shared Services, thus Shared Services' substantial interests would be affected by the granting of Shands' application for licensure and certification. Shared Services further alleged that disputed issues of fact existed as to whether the new service would unnecessarily duplicate the existing service; that both operations were based in Gainesville, Florida; that operation of such services is expensive, and only by maximum utilization can costs and charges to patients be kept reasonable, and quality of services maintained; projections showed more than one helicopter service would have negative impact on financial feasibility and quality of care; duplication would result in operating deficits and increased user fees; and competition might prevent emergency victims from receiving care in the most appropriate facility. In the petition for hearing Shared Services requested a determination of the duplication of services issue.
In the final order HRS concluded, among other things that the basic thrust of Shared Services' petition was that approval of Shands' application would result in economic injury to it, but competitive economic injury alone is insufficient to afford standing to request a formal hearing under Section 120.57, Florida Statutes, as there is no statutory authority for making competitive economic injury a concern in the issuance of licenses and certifications under Chapter 401, citing Agrico Chemical Co. v. Department of Environmental Regulation, 406 So.2d 478 (Fla. 2d DCA 1981), and ASI, Inc. v. Public Service Commission, 334 So.2d 594 (Fla.1976).
Shared Services argues that it has standing to request a Section 120.57 formal hearing on Shands' application, because it has a substantial interest that is within the ambit of Chapter 401. Shared Services contends that a legislative concern with duplication of services is evident in Sections 401.113, 401.117, 401.24, and 401.25(2), Florida Statutes, and in Rule 10D-66.41(d), Fla.Admin.Code. In summary, Shared Services argues the statutory provisions and the rule indicate that competitive economic interests, as they relate to the issues of duplication of services, quality of services, and coordination of emergency services, are within the zone of interests protected by Chapter 401, thus they have standing under the test set forth in Agrico for ascertaining whether a party has a substantial interest entitling them to a hearing. 1 Shared Services asserts that, as in Gadsden State Bank v. Lewis, 348 So.2d 343 (Fla. 1st DCA 1977), HRS made duplication of services an issue by its own Rule 10D-66.41(d). 2
Shared Services also asserts errors in the other portions of the order dealing with the substantive aspect of the duplication issue, however, we need only focus on the standing question in order to conclude this appeal.
Appellees argue that Shared Services has no standing to raise an issue of potential injury on behalf...
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