STATE OF FLORIDA ahaa foal oo : DIVISION OF ADMINISTRATIVE HEARINGS 7 a BAYTREE NURSING CENTER, d/b/a S HARBORSIDE HEALTHCARE - PALM _ HARBOR, mt _- Petitioner, S OO est WA Oo; 2 gag BS vs. DOAH CASE No.o2gz50ngrr © foal "SG AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. HHCI LIMITED PARTNERSHIP, d/b/a HARBORSIDE HEALTHCARE, NAPLES Petitioner, vs. DOAH CASE NO. 02-2260MPI AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. HHCI LIMITED PARTNERSHIP, d/b/a HARBORSIDE HEALTHCARE, SARASOTA Petitioner, vs. DOAH CASE NO. 02-2261MPI AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. OAKHURST MANOR NURSING CENTER, d/b/a HARBORSIDE HEALTHCARE - OCALA, Petitioner, VS. DOAH CASE NO. 02-2262MPI AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. / FINAL ORDER THE PARTIES resolved all disputed issues and executed a Settlement Agreement on ie fo , 2002, which is incorporated by reference. The parties are directed to comply with the terms of the attached settlement agreement. Based on the foregoing, this file is CLOSED. DONE and ORDERED on this the (day of 2 * 41 © .; 2002, “Boe Rhonda M. Medows, MD, Seckktary Agency for Health Care Administration in Tallahassee, Florida. 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 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. Copies furnished to: Eric Miller, Esquire Agency for Health Care Administration (Interoffice Mail) Garnett Chisenhall, Esquire Agency for Health Care Administration (Interoffice Mail) George Judware Harborside HealthCare, LP One Beacon Street, 11% Floor Boston MA 02108 (U.S. Mail} Lawrence P. Stevenson Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 Lisa Milton, Medicaid Program Analysis Willie Bivens, Finance and Accounting CERTIFICATE OF SERVICE 1 HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished to the above named addressees by U.S. Mail on this the cL day \ of teeny Lic, 2002. (| iw ie ed -Lealand McCharen, Esquiré Agency Clerk State of Florida Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32308-5403 (850) 922-5873 Pn, SEP 25-2002 04:20 GENCY HEALTH CARE ADMIN 858 921 g158 a ‘t ~ boy STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS BAY TREE NURSING CENTER, d/b/a HARBORSIDE H EALTHCARE - PALM HARBOR, Petitioner, Vs. DOAH CASE NO.02-2259MPI ENGAGEMENT NO. NHO00-021M AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. | _ HHCI LIMITED PARTNERSHP, d/b/a HARBORSIDE HEALTHCARE, NAPLES Petitioner, vs. DOAH CASE NO. 02-2260MPI ENGAGEMENT NO. NHO00-020M AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. { _ WHCI LIMITED PARTNERSHIP, do/a HARBORSIDE HEALTHCARE, SARASOTA. Petitioner, vs. DOAH CASE NO. 02-226 1MPI. ENGAGEMENT NO. NH00-022M AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. _ P.@3 Wa. 55725-2002 84:28 AGENCY HEALTH CARE ADMIN 850 921 4158 P.u4 OAKHURST MANOR NURSING CENTER, d/b/a HARBORSIDE HEALTHCARE — OCALA, Petitioner, vs. DOAH CASE NO. 02-2262MPI ENGAGEMENT NO. NH00-023M AGENCY FOR HEALTHCARE ADMINISTRATION, Respondent. / SETTLEMENT AGREEMENT STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (“AHCA” or “the Agency”), and Petitioners BAYTREE NURSING CENTER, d/b/a HARBORSIDE HEALTHCARE ~- PALM HARBOR (“Bay Tree”); HHCI LIMITED PARTNERSHIP, d/b/a HARBORSIDE HEALTHCARE, NAPLES (“Harborside of Naples”); HEC! LIMITED PARTNERSHIP, d/b/a HARBORSIDE HEALTHCARE, SARASOTA (“Harborside of Sarasota”); and OAKHURST MANOR NURSING CENTER, d/b/a HARBORSIDE HEALTHCARE -— OCALA (“Oakhurst”), (collectively referred to as “the Providers”), by. and through the undersigned, stipulate.and. agree.as-fallows-. 1, This Agreement is entered into between the parties for the purpose of avoiding the costs and burdens of litigation. 2. The PROVIDERS are Medicaid providers in the State of Florida operating facilities that were audited by the Agency. 3. Tn audit engagements NHO00-021M, NHO00-020M, NH00-022M, and SEP-23-202 94:20 AGENCY HEALTH CARE ADMIN 958 921 @158 P.@5 NH00-023M, AHCA audited each respective PROVIDER'S cost report for the audit period ending December 31, 1998. 4. In its Audit Reports issued on March 7, 2002 pursuant to the foregoing audit engagements, AHCA notified each PROVIDER that 2 review of their respective cost reports showed, in its opinion, some claims in whole or in part were not reimbursable by Medicaid. The Agency further notified the PROVIDERS of the adjustments ABCA was making to the cost reports. In response to the Audit Reports, the PROVIDERS filed timely petitions for administrative hearings that were assigned DOAH case numbers 02-2259MPI, 02-2260MPI, 02-2261MPI, and 02-2262MPI. Those cases subsequently were consolidated for hearing. 5. In their respective petitions for administrative hearing, each PROVIDER identified specific adjustments being contested. 6. Subsequent to issuance of the Audit Reports, AHCA and the PROVIDERS exchanged documents and discussed the disputed adjustments. 7. As a result of the foregoing discussions, the parties agree the Agency’s adjustments which are the subject of these proceedings, pertaining to the cost report of Bay Tree-for the audit year ending. December At, 1998 (audit engagement. number. NHOG- 021M), are valid except for adjustment number 20, Adjustment number 20, in the. yh v amount of $(11,848.00), will be removed from the audit report. 8. As a result of the foregoing discussions, the parties agree the Agency’s adjustments which are the subject of these proceedings, pertaining to the cost report of Harborside of Naples for the audit year ending December 31, 1998 (audit engagement number NH00-020M), are valid except for the following: Adjustment number 6 will be ty pers eee wai co HUENUY HEALTH CARE ADMIN 850 921 G158 vr. 2 LA revised from 5(2,207.00) to $(1,808. 00)” ‘The comment for adjustment number 6 is amended to reflect the adjustment js intended to reclassify employee benefits. A new - audit report adjustment will be added to Patient Care in the amount of $1,808 00 gf reflect the reclassification of employee benefits. Adjustment number 18, in the amount of §(0,764.00), will be removed from the audit report. 9. As a result of the foregoing discussions, the parties agree the Agency’s adjustments which are the subject of these proceedings, pertaining to the cost report of Harborside of Sarasota for the audit year ending December 31, 1998 (audit engagement number NH00-022M), are valid except for the following: Audit adjustment mumber 19 will be revised from $(27,847.00) to $(16,708.00). u - 10, Asaresult of the foregoing discussions, the parties agree the Agency’s adjustments which are the subject of these proceedings, pertaining to the cost report of Oakhurst for the audit year ending December 31, 1998 (audit engagement number NH00- 023M), are valid except for the following: Audit adjustment number 15, in the amount of on $(3,664. oof ma audit adjustment number 22, in the amount of $(7,415. 00), will be removed from the audit report. lL. In.order to. resolve.this matter. without further. administrative pracecdings, the PROVIDERS and AHCA expressly agree the adjustment resolutions, as set forth above, completely resolve and settle these cases and this agreement constitutes the PROVIDERS’ withdrawal of the petitions for administrative hearing, with prejudice. 12. The PROVIDERS and AHCA further agree the Agency shall recalculate the per diem rate for these time periods, and issue a notice of the recalculation, Where the PROVIDERS were overpaid, the PROVIDERS will remit payment to the Agency in us te Sep-23-2982 34:21 AGENCY HEALTH CARE ADMIN 858 921 W1>De v. ete the full amount of the overpayment within thirty (30) days of such notice. Where the PROVIDERS were underpaid, AHCA will remit payment to the PROVIDERS in the full - amount of the underpayment within forty-five (45) days of such notice. 13. Payment shall be made to: AGENCY FOR HEALTH CARE ADMINISTRATION Medicaid Accounts Receivable Post Office Box 13749 Tallahassee, FL 32317-3749 Notices to each Provider shall be made to: (Name of Proyider) C/o George Judware Harborside Healthcare, LP One Beacon Street, 11" Floor Boston, MA 02108 Payment shall clearly indicate it is pursuant to & settlement agreement, shall reference the Case Numbers, and shall reference the audit/engagement numbers. 14, The PROVIDERS, jointly and severally, agree that failure to pay any monies due and owing under the terms of this Agreement shall constitute the PROVIDERS’ authorization for the Agency, without further notice, to withhold the total remaining amount due under the terms of this agreement from any monies due and owing to the PROVIDERS, jointly and severally, for any Medicaid claims. 15, ABCA is entitled to enforce this Agreement under the laws of the State of Florida, the Rules of the Medicaid Program, and all other applicable law. 16. This settlement does not constitute an admission of wrongdoing or ctror by the parties with respect to this case or any other matter. However, the parties believe this matter should be settled because they have agreed to the foregoing terms. 17. Each party shall bear their respective attorneys’ fees and costs, if any. Ae, SEP-23- 2002 4:21 AGENCY HEALTH CARE ADMIN 850 921 8158 18. The signatories to this Agreement, acting in their respective representative capacities, are duly authorized to enter into this Agreement on pehalf of the party represented. The parties further agree a facsimile or photocopy reproduction of this Agreement shall be sufficient for the parties to enforce the Agreement. The PROVIDERS agree, however, to forward a copy of this Agreement to AHCA with original signatures, and understand a Final Order may not be issued until said original Agreement is received by AHCA. 19. This Agreement shall be construed in accordance with the provisions of the laws of Florida. Venue for any action arising from this Agreement shall be in Leon County. 20. This Agreement constitutes the entire agreement between the PROVIDERS and AHCA, including anyone acting for, associated with, or employed by them, respectively, conceming all matters and supersedes any ptior discussions, agreements, OF understandings; there are no promises, representations, Or agreements between the PROVIDERS and AHCA other than as set forth herein. No modification or waiver of any provision shall be valid unless a written amendment to the Agreement is completed. and, properly. executed hy the.pattics... 21. This is an Agreement of settlement and compromise, recognizing the parties may have different or incorrect understandings, information and contentions, as to facts and law, and with each party compromising and settling any potential correctness or incorrectness of its understandings, information, and contentions as to facts and law, so that no misunderstanding or misinformation shall be a ground for rescission hereof. 22. Each PROVIDER expressly waives in these matters its right to any . ogp-23-2002 Q4:21 AGENCY HEALTH CARE ADMIN 858 921 8158 P.@9 hearing pursuant to §§120,569 or 120.57, Florida Statutes, the making of findings of fact and conclusions of law by the Agency, and all further and other proceedings to which it may be entitled by law or rules of the Agency regarding these proceedings and any and all issues raised herein, other than enforcement of this Agreement. The PROVIDERS further agree the Agency shall issue a Final Order which is consistent with the terms of this settlement, that adopts this Agreement and closes this matter. 23. This Agreement is and shall be deemed jointly drafted and written by all parties to it and shall not be construed or interpreted against the party originating or preparing it. 24. To the extent any provision of this Agreement is prohibited by law for any reason, such provision shall be effective to the extent not so prohibited, and such prohibition shall not affect any other provision of this Agreement. 25, This Agreement shall inure to the benefit of and be binding on each party’s successors, assigns, heirs, administrators, representatives, and trustees. Bay Tree Nursing Center Corporation, d/b/a Harborside Healthcare — Palm Harbor and Harborside Healthcare Limited Partnership Petitioner/Provides. . Dated: __ 7/24 I o2- (dignature By its: VP Reinmbyrsemtct (title) SEP RB 2002 @4:2t AGENCY HEALTH CARE ADMIN 858 921 4158 P.18 HHCI Limited Partnership, d/b/a are, - Naples and Harborside Healthcare Limited Partnership Dated: aft] 42 By its: VP Cin ceunok (title) Harborside Health we Sarasota and Harborside Healthcare Limited Parmership Dated: 9] wf oe By its: ve Sirs Omer (title) Oakhurst Manor Nursing Center Corporation, d/b/a Harborside Healthcare — Ocala and Harborside Healthcare Limited Partnership Petitioner/Provider Dated: 9 /24, oz By its: vP im Ci ent WHIP 3-2002 04:21 AGENCY HEALTH CARE ADMIN g50 921 158 P14 AGENCY FOR HEALTH CARE ADMINISTRATION 2727 Mahan Drive, Mail Stop #3 Tallahassee, FL 32308-5403 Bob Sharpe, Deputy Secretary, Mefjicaid ~, ; ~ a ’ 3 Ath Ll A Valda Clark Christian, Géfieral Counsel - Me - é Yip! Ee lo LY, Co. Mo EL CE hae Dated: Vo = 4 Eric H. Miller, Assistant General Counsel TOTAL P.11

Docket for Case No: 02-002259MPI