STATE OF FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION¢ \ CER: 1008 FEB 21 A 10: 29 BAPTIST HOSPITAL, INC. d/b/a BAPTIST HOSPITAL, Petitioner, DOAH Case No. 07-5234CON AHCA No. 2007011750 vs. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. a / FINAL ORDER THIS CAUSE comes before the AGENCY FOR HEALTH CARE ADMINISTRATION (the "Agency") concerning the hospital license (Hospital License No. 4456) of BAPTIST HOSPITAL, INC. d/b/a BAPTIST HOSPITAL (hereinafter “Baptist”) challenging the Agency’s issuance of a corrected license whereby the Agency removed 57 skilled nursing homes from Baptist’s hospital license. Thereafter, Baptist filed a Petition for Administrative Hearing with respect to that action. The Agency and Baptist negotiated a settlement of the dispute which is included in the Settlement Agreement attached hereto. On January 25, 2008, the Agency and Baptist filed a Joint Motion to Relinquish Jurisdiction at the Division of Administrative Hearings stating that the Agency and Baptist have entered into a settlement agreement. On January 28, 2008, an Order Closing File was issued by DOAH as a result of the Joint Motion to Relinquish Jurisdiction. It is therefore ORDERED and ADJUDGED: 1. The attached Settlement Agreement is approved and adopted as part of this Final Order, and the parties thereto are directed to comply with the terms of the Settlement Agreement. 2. Within 30 days of full execution of the Settlement Agreement, the Agency shall issue a corrected hospital license to Baptist for a total of 492 beds, 57 of which shall be designated as hospital-based skilled nursing beds on Baptist’s license. 3. The above-styled case is hereby closed. DONE and ORDERED this _o2 day of Ais | 2008, in Tallahassee, Leon County, Florida. ANDREW C. AGWYNOBI, M.D., Secretary AGENCY FOR LTH CARE ADMINISTRATION NOTICE OF RIGHT TO JUDICIAL REVIEW 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 THESE 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 I HEREBY CERTIFY that a true and correct copy of the foregoing Final Order has been furnished by U.S. or interoffice mail to the persons named RICHARD J. SHOOP, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308 (850) 922-5873 COPIES FURNISHED TO: P. Michael Ruff Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 Michael J. Cherniga, Esquire Seann Frazier, Esquire Greenberg Traurig P.A. Post Office Box 1838 Tallahassee, Florida 32302 Sandra E. Allen, Esquire Assistant General Counsel Agency for Health Care Administration 2727 Mahan Drive, Building 3, MS #3 Tallahassee, Florida 32308 (By Interoffice Mail) Elizabeth Dudek Deputy Secretary Agency for Health Care Administration 2727 Mahan Drive, Building 1, MS #9 Tallahassee, Florida 32308 (By Interoffice Mail) Jan Mills Facilities Intake Agency for Health Care Administration 2727 Mahan Drive, Building 3, MS #3 Tallahassee, Florida 32308 (By Interoffice Mail) cae) STATE OF FLORIDA OE hen Ben AGENCY FOR HEALTH CARE ADMINISTRATION FEB 25 AMIE 43 BAPTIST HOSPITAL, INC. Ops SE d/b/a BAPTIST HOSPITAL oMIR tne DOAH Case No. 07-5234 "=P" Petitioner, AHCA Case No. 2007011750 vs. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. a SETTLEMENT AGREEMENT Petitioner, Baptist Hospital, Inc. (“Baptist” or “Petitioner”) and Respondent, State of Florida, Agency for Health Care Administration (“Agency” or “Respondent”), pursuant to Section 120.57(4), Florida Statutes, each individually, a “party,” collectively as “parties,” hereby enter into this Settlement Agreement (“Agreement”) and agree as follows: WHEREAS, Baptist operates a general acute care hospital in Escambia County, Florida, licensed pursuant to Chapter 395, Florida Statutes; and WHEREAS, the Agency has jurisdiction over Baptist’s licensure by virtue of being the regulatory and licensing authority over hospitals, pursuant to Chapter 395, Florida Statutes; and WHEREAS, since at least 2005, the Agency licensed Baptist to operate 492 beds, including 57 beds designated as a hospital-based skilled nursing unit; and TAL 451,441,544v4 1/14/2008 WHEREAS, on or about March 2007, Baptist filed an application to renew its hospital license for a total inventory of 492 beds, but did not designate any of those beds as operated within a hospital-based skilled nursing unit; and WHEREAS, on or about April 2007, the Agency approved Baptist’s March 2007 application and issued Baptist a license for a total inventory of 492 beds, but did not designate any of those beds as operated within a hospital-based skilled nursing unit; and WHEREAS, on or about May 2007, the Agency issued a “corrected” license to Baptist that subtracted 57 beds from its licensed inventory, leaving a licensed capacity of 413 beds on Baptist’s license; and WHEREAS, Baptist sought formal administrative proceedings in order to challenge AHCA’s decision to issue the corrected license to Baptist, and WHEREAS, the parties have negotiated and agreed that the best interest of all the parties will be served by a settlement of this proceeding; and NOW THEREFORE, in consideration of the mutual promises and recitals herein, the parties intending to be legally bound, agree as follows: 1. All recitals herein are true and correct and are expressly incorporated herein. 2. Both parties agree that the “whereas” clauses incorporated herein are binding findings of the parties. 3. Upon full execution of this Agreement, Baptist agrees to waive any and all appeals and proceedings to which it may be entitled including, but not limited to, an TAL 451,441,544v4 1/14/2008 2 informal proceeding under Subsection 120.57(2), Florida Statutes, a formal proceeding under Subsection 120.57(1), Florida Statutes, appeals under Section 120.68, Florida Statutes; and declaratory and all writs of relief in any court or quasi-court of competent jurisdiction; and agrees to waive compliance with the form of the Final Order (findings of fact and conclusions of law) to which it may be entitled, provided, however, that no agreement herein shall be deemed a waiver by either party of its right to judicial enforcement of this Agreement. 4. Upon full execution of this Agreement, Agency and Baptist agree to the following: a. File a joint motion to relinquish jurisdiction with DOAH to relinquish jurisdiction to AHCA. b. Within 30 days of full execution of this Agreement, the Agency shall issue a license to Baptist for total of 492 beds, 57 of which shall be designated as hospital-based skilled nursing unit beds on Baptist’s license; and c. The Agency shall not require that Baptist seek or receive Medicare certification of its licensed 57 bed hospital-based skilled nursing unit at any time before December 2009; d. The Agency shall not seek to revoke Baptist 57 hospital-based skilled nursing unit beds due to any bed review by the. Agency which reveals that the 57 hospital-based skilled nursing unit beds are not Medicare certified or not operational before December 2009; and TAL 451,441,544v4 1/14/2008 3 e. The Agency shall not seek or require any review by the Agency's Office of Plans and Construction in order for Baptist to operate its 57 bed hospital-based skilled nursing unit. f. Baptist agrees that it will not use 57 beds of its licensed capacity other than as hospital-based skilled nursing beds prior to August 2009. g. Baptist agrees to pay AHCA all licensure and other fees associated with the 57 beds described above as they are assessed by the Agency. 5. Venue for any action brought to enforce the terms of this Agreement or the Final Order entered pursuant hereto shall lie in 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 closing the above- styled case. 7. Each party shall bear its own costs and attorney’s fees. 8. This Agreement shall become effective on the date upon which it is fully executed by all the parties. 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, TAL 451,441,544v4 1/14/2008 4 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 Respondent or related facilities. 10. This Agreement is binding upon all parties herein. 11. | The undersigned have read and understand this Agreement and have the authority to bind their respective principals to it. 12. This Agreement contains and incorporates the entire understandings and agreements of the parties. 13. | This Agreement supersedes any prior oral or written agreements between the parties. 14. | This Agreement may not be amended except in writing. Any attempted assignment of this Agreement shall be void. 15. All parties agree that a facsimile signature suffices for an original signature. The following representatives hereby acknowledge that they are duly authorized to enter into this Agreement. elt Mw Aye David Sjoberg Vice President Agency‘for Health Care Administration Baptist Hospital, Inc. 2727 Mahan Drive, Bldg #1 1000 West Moreno Street Tallahassee, Florida 32308 Post Office Box 17500 Pensacola, Florida 32522-7500 paren: 2/70/300§" DATED: _| / 19 100% TAL 451,441,544v4 1/14/2008 5 Craig H. , General Counsel Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308 Sandra Allen, Asst. General Counsel Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308 patep: