STATE OF FLORIDA a AGENCY FOR HEALTH CARE ADMINISTRATION OfT Ih 02 WUESTHOFF MEMORIAL HOSPITAL, INC., Petitioner, vs. AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. _/ FINAL ORDER wes wniloa PIPL OVMENT op ene u ear TPT A Ces DOAH No.: 02-0426con D1) CON NO. 9494, CL Osec ~ The Agency for Health Care Administration, having entered into a Settlement Agreement with the parties to these proceedings, and being otherwise well advised in the premises, decides as follows: The attached Settlement Agreement is approved and adopted as a part of this Final Order and the parties are directed to comply with the terms of the Settlement Agreement. THEREFORE, it is ORDERED and ADJUDGED that the parties hereto are directed to comply with terms of the Settlement Agreement. DONE and ORDERED this 23 day of Xplmbar 2002,: in Tallahassee, Leon County, Florida. onda M. Medows, MD, Secretary gency for Health Care Administration A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH AGENCY CLERK AND A SECOND COPY, ALONG WITH FILING FEE AS PRESCRIBED BY LAW, IN THE DISTRICT COURT OF APPEAL 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 THIRTY (30) DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies furnished to: John Gilroy, Esq. Dom dH Assistant General Counsel AHCA, Mail Stop #3 (Interoffice Mail) David Ashburn, Esq. Greenberg Traurig 101 East College Avenue Tallahassee, Florida 32301 (U.S. Mail) Wendy Adams Regulatory Consultant AHCA, Mail Stop #3 (Interoffice Mail) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true copy of the foregoing was mailed to the above-named addressees on this 14 day of October 2002. Chalo otpss 45CLealand McCharen, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32303. JFG/sr STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS WUESTHOFF MEMORIAL HOSPITAL, INC., 4 ae “ (an Petitioner, ‘ vy. CASE NO. 02-0426CON CON 9494 AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. / SETTLEMENT AGREEMENT This Settlement Agreement is hereby entered into by and between Wuesthoff Memorial Hospital, Inc. (“Wuesthoff”) and the State of Florida, Agency for Health Care Administration (“AHCA”) (collectively “Parties”) this ube day of seat 2002. A. RECITALS 1. In 1997, Wuesthoff submitted an application to AHCA for Certificate of Need (“CON”) No. 8740 (the “New Hospital Application”) for the establishment of a 50 bed general acute care hospital in South Brevard County. The New Hospital Application proposed that its approval would be subject to the delicensure of 100 beds at Wuesthoff’s existing hospital campus, located at 110 Longwood Avenue, Rockledge, Florida (“Wuesthoff Rockledge”), upon licensure of the beds applied for pursuant to the New Hospital Application. The resulting delicensure condition on CON No. 8740 will hereinafter be referred to as the “Delicensure Condition”. 2. In November 2000, AHCA entered a Final Order approving the New Hospital Application. In the second batching cycle of 2001, Wuesthoff submitted an application for CON No. 9494 (the “50 Bed Application”) to AHCA, seeking approval for the addition of 50 beds to Wuesthoff Rockledge. As stated in the 50 Bed Application, Wuesthoff proposed that implementation of the 50 beds sought would occur through the reduction of the number of beds to be delicensed pursuant to the Delicensure Condition from 100 to 50. In support of its application, Wuesthoff presented information within the 50 Bed application which described capacity constraints at Wuesthoff Rockledge which would occur in the absence of approval of the 50 Bed Application. AHCA preliminarily denied the 50 Bed Application and Wuesthoff filed a petition for formal administrative proceedings to challenge the preliminary decision. Wuesthoff's petition was forwarded to the Division of Administrative Hearings (“DOAH”) which assigned the matter to an administrative law judge (“ALJ”) who has scheduled a formal hearing in May 2002 on the issues raised in the petition. The proceeding has been designated by DOAH as Case No. 02-0426CON. Subsequent to the issuance of AHCA’s preliminary decision on the 50 Bed Application, AHCA received additional information from Wuesthoff, including updated utilization information, from which AHCA has concluded that a balanced consideration of the applicable statutory and rule review criteria requires approval of the 50 Bed Application.” On November 20, 2001, Wuesthoff submitted to AHCA a request to modify the Delicensure Condition to reduce the number of beds to be delicensed from 100 to 50 (the “Condition Modification Request”). AHCA, by letter dated January 7, 2002, denied the Condition Modification Requést and Wuesthoff filed a petition for formal administrative proceedings to challenge that decision. The petition was referred to DOAH which assigned the matter to an ALJ who has scheduled a September 2002 hearing on the issues raised in the petition. The proceeding has been designated by DOAH as Case No. 02- 0883CON. 8. The Parties now wish to resolve various issues as set forth below. B. AGREEMENT TERMS Wuesthoff and AHCA, upon the exchange of good and valuable consideration among the Parties, the existence and sufficiency of which is hereby acknowledged, agree as follows: 1. Wuesthoff and AHCA agree that the matters set forth in the Recitals are true. 2. Within 7 days after execution of this Settlement Agreement by both parties, Wuesthoff will: (1) file a motion in DOAH Case No. 02-0426CON seeking relinquishment of jurisdiction by the ALJ to enable AHCA to issue a Final Order approving the 50 Bed Application, No. 9494; and (2) file a voluntary dismissal, with prejudice, of its petition in DOAH Case No. 02-0883CON. 3. Within 10 days after issuance of the requested order relinquishing jurisdiction by the ALJ in DOAH Case No. 02-0426CON, AHCA shall issue a Final Order approving the 50 Bed Application. 4, This Agreement constitutes the entire agreement between the parties with regard to the subject matter contained herein and all prior negotiations and understandings between the’ parties shall be deemed merged into this Agreement. 5. Each party shall bear its own attorneys fees and costs relative to the matters and proceedings referenced herein. 6. Each of the Parties participated in the drafting of this Agreement, and therefore the terms of this Agreement are not intended to be construed against any of the parties by virtue of draftsmanship. 7. The signators hereto represent that they are vested with the authority to execute this Agreement on behalf of their respective principals, and, as duly designated representatives, do fully bind such principals. This Agreement is not effective and binding until executed by all parties hereto. 8, No waiver, modification or amendment of the terms of this Agreement shall be valid or binding unless made in writing, signed by the party to be charged, and then only to the extent set forth in such written waiver, modification, or amendment. 9. Wuesthoff for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the State of Florida, Agency for Health Care Administration, and its agents, representatives, and attorneys of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, arising out of or in any way related to this matter and the Agency’s actions, including, but not limited to, any claims that were or may be asserted in any federal or state court or administrative forum, including any claims arising.out of this agreement, by or on behalf of Wuesthoff or- related facilities. u Dated this IT" day of Apeth 2002. WUESTHOFF MEMORIAL HOSPITAL, INC. BY: q Date: 4Hog lo aw And FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION eso Duds eeu, Date: 3 —— OU ST ee ee William Roberts, Esq., General Counsel Date: Shir (O~

Docket for Case No: 02-000426CON