STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS | dul) JUN pe Ath EIQ PORT CHARLOTTE HMA, INC., D/B/A PEACE RIVER REGIONAL MEDICAL CENTER, Petitioner, Case No. 06-0567CON v. CON 9882 STATE OF FLORIDA, AGENCY FOR HEALTH _ CARE ADMINISTRATION and CAPE MEMORIAL ° see : HOSPITAL, INC., D/B/A CAPE CORAL HOSPITAL, > Ss ee = “Ti Respondents. 25 = <= mak si SA 0 ees - and - Be fi ane > ej CAPE MEMORIAL HOSPITAL, INC., D/B/A nm ~ CAPE CORAL HOSPITAL, S Petitioner, Case No. 06-0558CON v. CON 9883 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. FINAL ORDER THE STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (hereinafter the “Agency”), having received the Order Closing File dated March 22, 2006, issued by the Division of Administrative Hearings (hereinafter "DOAH") regarding Case’ No. 06-0558CON, CON 9883, as a result of the voluntary dismissal on March 14, 2006, of the petition of CAPE MEMORIAL HOSPITAL, INC., D/B/A/ CAPE CORAL HOSPITAL (hereinafter "Cape Memorial"); and having reviewed all matters of record including CON Applications No. 9882 and 9883; and having entered into a Settlement Agreement with PORT CHARLOTTE HMA, INC., D/B/A PEACE RIVER REGIONAL MEDICAL CENTER (hereinafter "Peace River"), which Agreement is attached hereto as Exhibit 1; and being otherwise well advised in the premises: It is ORDERED and ADJUDGED: 1. The attached Settlement Agreement is approved and adopted as part of this Final Order, and the parties are directed to comply with the terms of the Stipulation and Settlement Agreement. 2. The Agency hereby approves the issuance of Certificate of Need No. 9882 to Peace River with the following condition appearing on the CON: Approval is based upon Petitioner's express representation that 56 percent of its total annual patient days in the second year of this unit's existence will be for Medicaid patients, and charity care will be provided in the amount of $210,510 to self-pay patients. 3. The voluntary dismissal by Cape Memorial and the Order Closing File by DOAH are hereby acknowledged and accepted. 4. The above-styled cases are hereby closed. DONE and ORDERED this_/ ¥ ry of _Juné. , 2006, in Tallahassee, Leon County, Florida. e Alan Levine, Secretary 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 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 OF PROCEEDINGS SHALL BE CONDUCTED IN ACCORDANCE WITH THE FLORIDA APPEALLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies furnished to: Karin M. Byrne, Esq. Assistant General Counsel Agency for Health Care Administration 2727 Mahan Drive, Building #3, Mail Stop Code #3 Tallahassee, Florida 32308 (Interoffice Mail) Elizabeth Dudek Deputy Secretary Agency for Health Care Administration 2727 Mahan Drive, Bldg #1, Mail Stop Code #9 Tallahassee, Florida 32308 (Interoffice Mail) Jan Mills (Interoffice Mail) Geoffrey D. Smith, Esq. Smith & Associates 2783 Remington Green Circle Tallahassee, Florida 32309 David M Maloney Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of this Final Order was served on the above-named persons and entities by U.S. Mail, or the method designated, on this Richard Shoop, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32308-5403 (850) 922-5873 Le day of — -Hre— , 2006. STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS PORT CHARLOTTE HMA, INC., D/B/A PEACE RIVER REGIONAL MEDICAL CENTER, Petitioner, Case No. 06-0567CON Vv. CON 9882 AGENCY FOR HEALTH CARE ADMINISTRATION and CAPE MEMORIAL HOSPITAL, INC., D/B/A CAPE CORAL HOSPITAL, Respondents. SETTLEMENT AGREEMENT. Respondent, the State of Florida Agency for Health Care Administration (hereinafter the "Agency"), through its undersigned representatives, and Petitioner, Port Charlotte HMA, Inc., d/b/a Peace River Regional Medical Center (hereinafter Petitioner"), pursuant to Section 120.57(4), Florida Statutes, (hereinafter collectively the "parties" and each individually a "party") hereby enter into this Settlement Agreement (the "Agreement”) stating as follows: WHEREAS, Petitioner is an applicant for a certificate of need to establish a Level II Neonatal Intensive Care Unit ("NICU") in Charlotte County, District 8, as to which Petitioner has requested approval for 10 beds; and WHEREAS, the Agency has jurisdiction by virtue of being the regulatory authority responsible for the review and approval of certificate of need applications, pursuant to Sections 408.035, 120.569 and 120.57, Florida Statutes; and WHEREAS, the Agency published a notice in the December 30, 2005, Florida Administrative Weekly, notifying the Petitioner of its intent to deny CON application No. 9882, based primarily upon perceived architectural concerns; and WHEREAS, the Petitioner challenged the preliminary denial of its CON application; and WHEREAS, the Petitioner has provided the Agency with clarifying information as to the submitted architectural plans which would alleviate the Agency's concerns; and WHEREAS, the parties have agreed that a fair, efficient, and cost-effective agreement to resolve this dispute would avoid the expenditure of substantial sums to litigate the dispute; and WHEREAS, the parties have negotiated and agreed that the best interests of the parties will be served by a settlement of this proceeding; NOW, THEREFORE, in consideration of the mutual promises and recitals herein, the parties, intending to be legally bound, agree as follows: 1. All of the above recitals are true and correct and are expressly incorporated herein as binding upon the parties, as well as upon all entities identified in Paragraph 8 hereof. 2. All section numbers set forth herein refer to the Florida Statutes in effect at the time of execution of this Agreement, and all rule numbers that may be set forth herein refer to the Florida Administrative Code in effect at the time of execution of this Agreement. 3. Upon full execution of this Agreement, the Agency agrees to issue a Final Order approving CON No. 9882 with the following conditions appearing on the CON: Approval is based upon Petitioner's express representation that 56 percent of its total annual patient days in the second year of this unit's existence will be for Medicaid patients, and charity care will be provided in the amount of $210,510 to self-pay patients. 4, Upon full execution of this Agreement, Petitioner: A. agrees to withdraw its pending Certificate of Need application (CON 9919); B. agrees to withdraw its Petition for a formal administrative proceeding; Cc. agrees to waive its rights under Section 120.57(1) or under any applicable statute or rule to any proceeding, including appeals under Section 120.68 and any other appeals; D. agrees to waive compliance with the form of the Final Order (i.e., Findings of Fact and Conclusions of Law) to which it may be entitled; and E. agrees to waive any right to declaratory and all other writs of relief in any court or quasi-court of competent jurisdiction (¢.g., the Department of Administrative Hearings); provided, however, that nothing herein shall be deemed a waiver by either party of its right to judicial enforcement of this Agreement. 5. Venue for any action brought to enforce the terms of this Agreement or the Final Order entered pursuant hereto shall lie in the Circuit Court in Leon County, Florida. 6. Upon full execution of this Agreement, the Agency shall enter a Final Order adopting and incorporating the terms of this Agreement and dismissing the above- styled case. 7. Immediately upon issuance of the Certificate of Need to Petitioner, Petitioner will request a modification of the Certificate of Need for a reduction in the number of beds from 10 to 7. 8. Each party shall bear its own costs and attorney's fees. 9. Petitioner, 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 Petitioner or related facilities. 10. This Agreement is binding upon all parties herein and those identified in Paragraph 8 above. 11. This Agreement constitutes the entire agreement between the parties and supersedes any prior discussions, agreements, or understandings between the parties. No modification or waiver is valid unless written and properly executed. 12. Any attempted assignment of this Agreement shall be void. 13. This Agreement shall become effective on the date upon which it is fully executed by all the parties. 14. Each individual signing below hereby expressly represents that (s)he is duly authorized to enter into this Agreement on behalf of the entity on whose behalf (s)he is signing below. AGENCY FOR HEALTHCARE ADMINISTRATION Elizabeth Dudek, Deputy Sécretary Division 0 ONE Quality Assurance Date: / 2/200 Go By: uh te (ele Christa Calamas, General Counsel te/13/@0 Date: veo. = cy, : Karin Byme, Assistant General Counsel Date: Terns | ok oOo t 2727 Mahan Drive, Building 3, MSC #3 Tallahassee, Florida 32308 PORT CHARLOTTE HMA, INC., D/B/A PEACE RIVER REGIONAL MEDICAL CENTER bef By: 7 J avid Mc@ormack { v, ief Executive Officer Date: z “2-06 Geo /Smith Smith & Associates 2783 Remington Green Circle Tallahassee, Florida 32309 Date: - -Ole

Docket for Case No: 06-000567CON