FIRST HOSPITAL CORPORATION OF FLORIDA, D/B/A FIRST HOSPITAL OF PALM BEACH COUNTY, APPELLANT,
v.
DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES AND COMMUNITY HOSPITAL OF THE PALM BEACHES, INC., D/B/A HUMANA HOSPITAL-PALM BEACHES, APPELLEES

Fla. 1st DCA | 1990-09-12
No. 89-2625
ERVIN and MINER, JJ., concur.
566 So. 2d 917 Florida District Court of Appeal, First District (1990) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

First Hospital Corporation challenged the Department of Health and Rehabilitative Services' approval of Humana Hospital's certificate of need modification for an adolescent psychiatric unit. The court affirmed the dismissal of First Hospital's petition, holding that First Hospital lacked standing because it was neither an applicant in the same batching cycle as Humana nor an existing health care facility with an established program.


Holding

First Hospital lacked standing to challenge the CON modification because it failed to satisfy the statutory requirements under Section 381.709(5)(b), Florida Statutes, which limit standing to applicants in the same batching cycle or existing health care facilities with an established program that would be substantially affected. The modification did not involve the same fixed pool of need as First Hospital's later application, so comparative review principles did not apply.


Headnotes

[1] A party must demonstrate that an established program will be substantially affected to have standing to challenge a certificate of need modification if they are not an ap…

[2] A hospital seeking to challenge a certificate of need modification must show it is competing for the same fixed pool of need to be entitled to comparative review.

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Key Quotes

“the modification of Humana's CON, which was addressed to an earlier fixed pool of need, does not alter the established need which is pertinent to appellant's later CON application”

Explains why comparative review principles do not apply when the CON modification addresses a different fixed pool of need than the applicant's pending application.

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Facts & Procedural History

First Hospital is a hospital in Palm Beach County that sought preliminary approval to construct a short-term child and adolescent psychiatric hospital…

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Opinion of the Court
WENTWORTH, Judge.

WENTWORTH, Judge.

Appellant seeks review of an order by which its petition requesting an administrative hearing was dismissed upon a determination that appellant lacks standing to challenge the approval of appellee Humana Hospital’s certificate of need (CON) application. We conclude that appellant was properly found to lack standing, and we therefore affirm the order appealed.

Appellant is a hospital in Palm Beach County which petitioned for an administrative hearing to contest a decision by appel-lee Department of Health and Rehabilitative Services (HRS) to allow Humana to operate an adolescent psychiatric unit in Palm Beach County. Appellant’s petition asserts that appellant has received preliminary approval to construct a short-term child and adolescent psychiatric hospital, but it was indicated that this application remains pending upon a challenge by Hu-mana. The petition further asserts that Humana received prior approval for a short-term adult and geriatric facility, and that after an HRS investigation revealed that Humana was operating an adolescent psychiatric unit Humana agreed to request a CON modification to authorize a district adolescent treatment unit. After HRS indicated that it would partially grant the modification request Humana initiated a challenge to HRS’ fixed pool rule and unsuccessfully sought to consolidate this rule challenge with its pending challenge to the preliminary approval of appellant’s CON application. Appellant then petitioned for an administrative hearing to contest the preliminary HRS decision to partially approve Humana’s requested CON modification. Humana disputed appellant’s standing to bring such a challenge, and an administrative order was thereafter entered finding that appellant is not an existing health care facility with an established program and thus has not met the statutory threshold requirement for standing. Appellant’s petition for a hearing was accordingly dismissed.

Appellant argues that its substantial interests are affected by the modification of Humana’s CON, and that concepts of comparative review and fundamental fairness require that it be accorded standing to challenge the modification of Huma-na’s CON. The comparative review principles which have evolved from Ashbacker Radio Corp. v. Federal Communications Commission, 326 U.S. 327, 66 S.Ct. 148, 90 L.Ed. 108 (1945), and as delineated in BioMedical Applications of Clearwater Inc. v. Department of Health & Rehabilitative Services, 370 So. 2d 19 (Fla. 2d DCA 979), are applicable to CON applications which are competing for the same fixed pool of established need. See University Medical Center Inc. v. Department of Health & Rehabilitative Services, 483 So. 2d 712 (Fla. 1st DCA 1985); Gulf Court Nursing Center v. Department of Health & Rehabilitative Services, 483 So. 2d 700 (Fla. 1st DCA 1985). But the modification of Humana’s CON, which was addressed to an earlier fixed pool of need, does not alter the established need which is pertinent to appellant’s later CON application. See generally, Meridian Inc. v. Department of Health & Rehabilitative Services, 548 So. 2d 1169 (Fla. 1st DCA 1989); cf, Rule 10-5.-008(2)(a), F.A.C. Appellant has not shown that it is competing with Humana for the same fixed pool of need, and thus has not met its burden under University Medical with regard to the necessary criteria for entitlement to comparative review.

Section 381.709(5)(b), Florida Statutes, expressly limits standing for administrative hearings in the CON review process to applicants in the same batching cycle and to “existing health care facilities ... upon a showing that an established program will be substantially affected.... ” Since appellant has not shown that it has an application in the same batching cycle as Humana or that it has an established adolescent treatment program, it does not satisfy either of the statutory requirements as to standing for an administrative challenge to the modification of Humana’s CON. Appellant having failed to meet the requirements of section 381.709(5)(b), its petition for a hearing was properly dismissed. See Charter Hospital of Pasco County v. Department of Health & Rehabilitative Services, 563 So. 2d 181 (Fla. 1st DCA 1990); Lee Memorial Hospital v. Department of Health & Rehabilitative Services, 560 So. 2d 1367 (Fla. 1st DCA 1990).

The order appealed is affirmed.

ERVIN and MINER, JJ., concur.


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Citator

Cited By

  • …his court has implicitly recognized that Bio-medical will not aid an applicant who is otherwise precluded from meeting the standing requirement of section 381.709(5)(b). First Hosp. Corp. of Florida v. Department of Health & Rehabilitative Services, 566 So. 2d 917 (Fla. 1st DCA 1990). AFFIRMED. BARFIELD and ALLEN, JJ., concur. . An HRS rule allows CON applicants who propose a capital expenditure project, including a replacement facility, to apply for a CON on an expedited basis. Rule 10-5.004(2)(f), F.A.C.…

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