FILE! D STATE OF FLORIDA _AHCA AGENCY FOR HEALTH CARE ADMINISTRATION acentY CLERK RENDITION NO.: AHCA-09-0016-FOF-CON 1H Jan ~b P 2 54 CON NOS, 9975 & 9977 ~~ BAYCARE OF SOUTHEAST PASCO INC, . oa Petitioner, DOAH CASE NO. 07-3482CON_% AHCA NO. 2007008098 vs. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Lew Wd L-NuP 60 Respondent. / ’ NEW PORT RICHEY HOSPITAL, INC. d/b/al COMMUNITY HOSPITAL OF NEW PORT RICHEY, Petitioner, DOAH CASE NO. 07-3483CON AHCA NO. 20078081 vs. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. PASCO-PINELLAS HILLSBOROUGH COMMUNITY HEALTH SYSTEM, INC., Petitioner, vs. DOAH CASE NO. 07-3484CON AHCA CASE NO. 2007907830 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. FINAL ORDER This case was referred to the Division of Administrative Hestings (DOARD where the Ustsn "Bg assigned Administrative Law Judge (ALJ), David M. MaloneS7/bndicted a formal "Oe Eien administrative hearing. At issue in this proceeding is whether the Certificate of Need (CON) applications filed by Pasco-Pinellas Hillsborough Community Health System, Inc. (“Pasco- Pinellas”) and BayCare of Southeast Pasco, Inc. (“BayCare”) for a new hospital in Agency for Health Care Administration “Agency” or “AHCA”) Acute Care Subdistrict 5-2, satisfy, on balance, the applicable statutory and rule review criteria sufficiently to warrant approval, and, if so, which of the two applications best meets the applicable criteria for approval. The Recommended Order dated October 29, 2008 is attached to this final order and incorporated herein by reference, except where noted infra. RULINGS ON EXCEPTIONS BayCare filed exceptions to the recommended order. In Exception No. 1, BayCare took exception to the findings of fact in Paragraph 68 of the Recommended Order, arguing that the paragraph contained a clear error in that the ALJ found that BayCare did not condition approval of its CON application on the condition that the proposed satellite hospital would be a teaching hospital. BayCare asserted that such a condition was expressly listed in its CON application. While BayCare’s assertion that its CON application contained the expressed condition that the proposed satellite hospital would be a teaching hospital, it mischaracterizes the ALJ’s finding to the contrary by taking it out of context. In the _ finding at issue, the ALJ reasonably inferred that, based on the termination provisions in the BayCare and USF agreement, BayCare’s CON application did not meet the criteria for a “teaching hospital” in the Agency’s eyes. This inference was based on competent, substantial evidence. See Transcript, Volume 17, Pages 2009-2013 and 2032-2034. However, the ALJ’s finding should be modified in order for it not to be construed in the manner asserted by BayCare. Therefore, BayCare’s Exception No. | is partially granted to the extent that Paragraph 68 of the Recommended Order is modified to state: 68. The ability of USF to terminate the agreement is not "at will." It requires good faith efforts to have been made at implementations that fail to work. Furthermore, termination is not without consequences. BayCare’s condition in its application that the BayCare proposal be a teaching hospital is inconsistent with the termination provision in the agreement, "one more detail that made [AHCA officials] scratch our heads about the characterization of this hospital as a teaching hospital." Tr. 2011. It is also inconsistent with USF's support for "legislation that would be statewide that would allow state. medical schools at some point, if they chose to, to make it easier . . . to have a hospital or research hospital on campus ... [of which] USF would be one..." Tr. 1190-91. In Exception No. 2, BayCare took exception to the conclusions of law in Paragraphs 179 and 180 of the Recommended Order, arguing that the conclusions of law in these paragraphs were based on the erroneous finding of fact in Paragraph 68 of the Recommended Order and should therefore be rejected. However, as set forth in the ruling on Exception No. 1 supra, the findings of fact in Paragraph 68 of the Recommended Order were based on competent, substantial evidence. The Agency finds that it could not substitute conclusions of law that are as or more reasonable than those of the ALJ. Therefore, Exception No. 2 is denied. FINDINGS OF FACT The Agency hereby adopts the findings of fact set forth in the Recommended Order, except where noted supra. CONCLUSIONS OF LAW The Agency adopts the conclusions of law set forth in the Recommended Order. ORDER Based upon the foregoing, Pasco-Pinellas’ CON application No. 9975 is approved, and BayCare’s CON application No. 9977 is denied. st DONE and ORDERED this 3( day of Veembu , 200 6, in Tallahassee, HOLL : BENSON, SECRETARY AGENCY FOR HEALTH CARE ADMINISTRATION Florida. NOTICE OF RIGHT TO JUDICIAL REVIEW A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO A JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH THE AGENCY CLERK OF AHCA, AND A SECOND COPY ALONG WITH THE FILING FEE AS PRESCRIBED BY LAW, WITH THE DISTRICT COURT OF APPEAL IN THE APPELLATE DISTRICT WHERE THE AGENCY MAINTAINS ITS HEADQUARTERS OR WHERE A PARTY RESIDES. REVIEW PROCEEDINGS SHALL BE CONDUCTED IN ACCORDANCE WITH THE FLORIDA APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. CERTIFICATE OF SERVICE IJ HEREBY CERTIFY that a true and correct copy of the foregoing Final Order has been furnished by U.S. Mail, or by the method indicated, to the persons named below on this RICHARD J. SHOOP, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, MS #3 Tallahassee, Florida 32308-5403 (850) 922-5873 COPIES FURNISHED TO: Honorable David M. Maloney Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 Karin M. Byrne, Esquire Agency for Health Care Administration 2727 Mahan Drive, MS #3 Tallahassee, Florida 32308 Stephen K. Boone, Esquire Boone, Boone, Boone, Koda & Frook, P.A. 1001 Avenida Del Circo Post Office Box 1596 Venice, Florida 34284 Jonathan L. Rue, Esquire Parker, Hudson, Rainer & Dobbs, LLP 1500 Marquis Two Tower 285 Peachtree Center Avenue Northeast Atlanta, Georgia 30303 Robert A. Weiss, Esquire Karen A. Putnal, Esquire Parker, Hudson, Rainer & Dobbs, LLP The Perkins House, Suite 200 118 North Gadsden Street Tallahassee, Florida 32301 Stephen A. Ecenia, Esquire R. David Prescott, Esquire Rutledge, Ecenia, & Purnell, P.A. 215 South Monroe Street, Suite 420 Post Office Box 551 Tallahassee, Florida 32302-0551 Elizabeth Dudek Health Quality Assurance Jan Mills Facilities Intake Unit

Docket for Case No: 07-003484CON

Orders for Case No: 07-003484CON