STATE OF FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION Ba 10S OCT 2b Pf: 23 SPECIALIZED HOME HEALTH CARE — SERVICES OF CENTRAL FLORIDA, INC., d/b/a BEST CHOICE HOME HEALTH CARE, tt Petitioner, CASE Nos: 05-2470 2005004296 vs. STATE OF FLORIDA RENDITION NO.: AHCA-05-O828 -s-OLC AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. _/ FINAL ORDER Having reviewed the Notice of Intent to Deny dated June 10, 2005, attached hereto and incorporated herein (Ex. 1), and all other matters of record, the Agency for Health Care Administration (“Agency”) has entered into a Stipulation Agreement with the parties to these proceedings, and being otherwise well advised in the premises, finds and concludes as follows: ORDERED: 1. The attached Stipulation Agreement (Ex. 2) is approved and adopted as part of this Final Order and the parties are directed to comply with the terms of the Stipulation Agreement. | 2. The Petitioner’s Petition for Forma! Administrative Proceedings is hereby withdrawn. 3. Each party shall bear its own costs and attorney’s fees. 4. The above styled case is hereby dismissed. ao DONE and ORDERED this _2 day of (28 per. _, 2005, in Tallahassee, Leon County, Florida. r ire, Secretary | Agency for\Health Care Administrati Alan Levi 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 APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies Furnished To: | Kimberly M. Murray John E. Clontz, Esquire Senior Attorney General Counsel Agency for Health Care Health Essentials Solutions, Inc. Administration 9510 Ormsby Station Road, Suite 101 525 Mirror Lake Dr. N. #330D Louisville, Kentucky 40223-4082 St. Petersburg, Florida 33701 (U.S. Mail) (Interoffice Mail) Jan Mills Elizabeth Dudek Agency for Health Care Deputy Secretary Administration Agency for Health Care Administration 2727 Mahan Drive, Bldg #3, MS #3 | 2727 Mahan Drive, Bldg #1, MS 9 Tallahassee, Florida 32308 Tallahassee, Florida 32308 (Interoffice Mail) (Interoffice Mail) Carolyn S. Holifield Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway | Tallahassee, Florida 32399 (U.S. Mail) CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of this Final Order was --- served on the above-named person(s).and entities by U.S. Mail, or the method designated, on this the Be day of _ A2eber , 2005. Richard Shoop, Agency : = Agency for Health Care Administration 2727 Mahan Drive, Bldg #3, MS #3 Tallahassee, Florida 32308-5403 (850) 922-5873 ‘Inc., EIN # 593546417) is relying belong to Healthessentials Solutions, Inc. (EIN # 611342095). @ 2oos 004296 ‘FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION JEB BUSH, GOVERNOR . ALAN LEVINE, SECRETARY June 10, 2005 Certified Article Number CERTIFIED MAIL RETURNED RECEIPT; AGO 390% (9849 0223 3470 caries B SENDERS RECORD Best Choice Home Health Care . 3258 Parkside Center Circle RE: Initial application for license Tampa, FL 33619 ; Complaint # 2005004296 NOTICE OF INTENT TO DENY The application for licensure of the above named company as a home health agency is being denied for failure to meet the requirements in state law and rule. A letter with items that were omitted from your application was sent March 15, 2005. On April 22, 2005 you responded by sending your responses to the omission letter. The application did not meet the requirements in state law and rules as follows: . 1. The resume submitted for the alternate director of nursing does not contain the required - one year of supervisory experience. : The pertinent statutes and rules that apply include: Section 400.462 (7), Florida Statutes (F.S.), "Director of nursing" means aregistered nurse and . direct employee of the agency or related business entity who is a graduate of an approved school of nursing and is licensed in this state; who has at least 1 year of supervisory experience as a registered nurse in a licensed home health agency, a facility licensed under chapter 395, ora facility licensed under part I or part Il of this chapter; and who is responsible for overseeing the professional nursing and home health aid delivery-of services of the agency. An employee.may be the director of nursing of.a maximum of five licensed home health agencies operated by a related business entity and located within one agency service district or within an immediately contiguous county. If the home health agency is licensed under this chapter and is part ofa retirement community that provides multiple levels of care, an employee of the retirement community may serve as the director of nursing of the home health agency and of up to four . entities licensed under this chapter which aré owned, operated, or managed by the same corporate entity. A director of nursing shall designate, in writing, for each licensed entity, a qualified alternate registered nurse to serve during the absence of the director of nursing.” 2. The applicant did not prove financial ability to operate as indicated by the following: The funds upon which the applicant (Specialized Home Health Care Services of Central Florida, EXHIBIT 2727 Mahan Drive » Mail Stop #34 Tallahassee, FL 32308 Visit A Aitnefiahea ‘e’ Best Choice Home Health ee v'- ‘ . Inc., EIN # 593546417) is relying belong to Healthessentials Solutions, Inc. (EIN # 61 1342095). Healthessentials Solutions, Inc. is 100% owner of the applicant company; Specialized Home Health Care Services of Central Florida, Inc. Healthessentials Solutions, Inc. filed a voluntary petition for Chapter 11 proceedings under the Bankruptcy Code on March 1, 2005. The most recent document from these supplied by the applicant shows that the final disposition of company assets regarding creditors has not yet been established. As long as the applicant (a wholly owned subsidiary) is relying exclusively on the parent company for funding; as long as assets held directly by the applicant might be jeopardized by creditors of the parent; and as long as the parent company financial status remains undecided, the applicant has not shown proof of financial ability to operate. The pertinent statutes and rules that apply include: Section 400.471 (2) (c), F.S., “The applicant must file with the application satisfactory proof that _ the home health agency is in compliance with this part and applicable rules, including: (c) Proof of financial ability to operate.” Section 400.471 (3), F.S., “An applicant for initial licensure must demonstrate financial ability to operate by submitting a balance sheet ‘and income and expense statement for the . _ first 2 years of operation ‘which provide evidence of having sufficient assets, credit, and projected revenues to cover liabilities and expenses. The applicant shall have demonstrated financial ability to operate if the applicant’s assets, credit, and projected revenues meet or exceed projected liabilities and expenses. All documents required under this subsection must be prepared in accordance with generally accepted accounting principles, and the financial statement must be signed by a certified public accountant.” Section 400.474 (2) (a), F.S., “Any of the following actions by a home health agency or its employee is grounds for disciplinary action by the agency: (a) Violation of this part or of applicable rules.” Section 59A-8.004 (5) Florida Administrative Code (FAC), “For initial applications, including changes of ownership, the applicant must submit proof of financial ability to operate, pursuant to s.400.471 (3), F.S., The compliance is demonstrated. by completion of schedules 1 through 7 of the home health agency application, as referenced in subsection (1) above.” EXPLANATION OF RIGHTS Pursuant to Section 120.569, Florida Statutes, (F.S.) you have the right to Tequest an administrative hearing. In order to obtain a formal proceeding before the Division of Administrative Hearings under Section 120.57(1), F.S., your request for an administrative " hearing must conform to the requirements in Section 28-106.111 Florida Administrative Code (F.A.C), Section 28-106.201 Florida Administrative Code (F.A.C), and must state the material facts you dispute. . In order to preserve the right to a hearing, the Election of Rights form, in this matter, must be received by the Agency for Health Care Administration within twenty-one (21) days from the ia r . t 4° Best Choice Home Health ® , : @ date the Notice of Intent to Deny is received by licensee. If the election of rights form with the selected option is not received by the Agency for Health Care Administration within twenty-one (21) days from the date of the receipt of Notice of Intent to Deny, a final order will be issued finding the deficiencies and/or violations charged and imposing the penalty sought. Agency for Health Care Administration By. 3 Anne Menard as Unit Manager Home Care Unit Health Facility Regulation Copy: Agency Clerk, MS 3 Wendy Adams, MS 3 ‘Enclosed: Election of Rights Form Explanation of Election of Rights Form ' STATE OF FLORIDA © AGENCY FOR HEALTH CARE ADMINISTRATION - RE: CASE NAME: Best Choice Home Health Care COMPLAINT NO. 2005004296 | ELECTION OF RIGHTS FOR NOTICE OF INTENT PLEASE SELECT ONLY 1 OF THE 3 OPTIONS An Explanation of Rights is attached. OPTION ONE (1)... / do not dispute the allegations of fact contained in the Notice of Intent and waive my right to. object or to be heard. | understand that by waiving my rights, a final order will be issued that adopts the Notice of Intent and iniposes the sanctions sought. OPTION TWO (2) — _/do not dispute and | admit the allegations of fact in the Notice of Intent, but do wish to be afforded an informal proceeding, pursuant to Section 120.57(2), Florida Statutes, at which time | will be permitted to submit oral and/or written evidence to the Agency in mitigation of the. penalty imposed. OPTION THREE (3) ___ | do dispute the allegations of fact contained in the Notice of Intent'and request a formal hearing, pursuant to Section. 120.57(1), Florida Statutes, before an Administrative Law Judge appointed by the Division of Administrative Hearings. : . If you choose. OPTION THREE (3), in order to obtain a formal proceeding before the Division: of Administrative Hearings under Section 120.57(1), F.S., your request for an administrative hearing must conform to the requirements in Section 28-106.201, Florida Administrative Code (F.A.C), and mist state, the material facts you dispute. . . ‘ ; In order to preserve your right to any hearing, your Election of Rights in this matter must be directed to the Agency by filing within twenty-one (21) days from the-date you receive the Notice of Intent. If you do not ‘respond.at all within twenty-one (21) days from receipt of the Notice of Intent, a final order will be issued finding you guilty of the violations charged and imposing the penalty sought in the Notice of Intent. if you have elected either OPTION TWO (2) or THREE (3) above and you are interested in discussing a settlement of this matter with the Agency, please also mark this block. 8 Mediation under Section 120.573, Florida Statutes, is not available in this matter. (Please sign and fill In your current address.) Respondent (Licensee) Address: License. No. and facility, type: : ‘ Phone No. PLEASE RETURN YOUR COMPLETED FORM TO: Agency Clerk, Office of the General Counsel, Agency for Health Care Administration, 2727 Mahan Drive ~ Mail Stop 3, Tallahassee, FL 32308, . , @ - ‘ oa ‘. .' STATE OF.FLORIDA : ’ AGENCY FOR HEALTH CARE ADMINISTRATION... (To be used with Election of Righits for Notice of Intent form — attached) In response to the allegations set forth In the Notice of Intent issued by the Agency for Health Care Administration ("AHCA" or “Agency”), you must make one of the following elections within twenty-one (21) days: from the date of receipt of the Notice of Intent. . Please make your election of the attached Election of Rights form and return it fully executed to the address listed on.the form. . “OPTION 1: If you ‘donot ‘dispute the allegations in the Notice of Intent and walve your right to be heard, you should select OPTION.1 on the election of rights form. A final order will be entarad finding you guilty of the violations charged and imposing the penalty sought in the Notice of Intent. You will be provided a copy of - the final order. ee : . . . OPTION 2. ° If.you'do not dispute any material fact alleged in the Notice of Intent (you admit each of *” them), you may request an informal hearing pursuant.to Section 120.57(2), Florida Statutes before the Agency. At the informal hearing, you wilt be given‘an opportunity to present both written and oral evidence to‘ ’ reduce the penalty being imiposed for the violations set out in the Notice of Intent. . Foran informal hearing, you should select OPTION 2 on the Election of Rights form. °° . tg OPTION 3, If you dispute the-allegations set forth in the ‘Notice of Intent (you do not admit them) you . may request a formal hearing pursuant to Section 120.57(1), Florida Statutes.- To obtain a formal hearing, select OPTION 3 on the Election of Rights form. ‘ , . In order to obtain a formal proceeding before the Division. of Administrative Hearings under Section 120.57(1), F.S., your request for an administrative hearing must conform to the requirements in Section * 28-106.201, Florida Administrative Code (F.A.C), and must state the material facts you dispute. In order to preserve your right to a’ hearing, your Election of Rights in this matter must be directed to thie Agency by filing within twenty-one (21 ) days from the date - you receive thé Notice of Intent..if you do ‘not respond.at all within twenty-one (21) . days from receipt of the Notice of Intent, a final order will be issued finding you guilty of the violations charged and ‘imposing the penalty sought in-the. Notice of Intent. . , . . STATE OF FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION SPECIALIZED HOME HEALTH CARE SERVICES OF CENTRAL FLORIDA, INC., d/b/a BEST CHOICE HOME HEALTH CARE, Petitioner, Case No. 05-2470 vs. AHCANo. 2005004296 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. \ he / STIPULATION AND SETTLEMENT AGREEMENT Respondent, Agency for Health Care Administration (hereinafter the “Agency”) through their undersigned representatives, and Petitioner, Specialized Home Health Care Services of Central Florida, Inc., d/b/a Best Choice Home Health Care (hereinafter Petitioner”) pursuant to Sec. 120.57(4), Florida Statutes (2004), each individually, a “party”, collectively as “parties,” hereby enter into this Stipulation and Settlement Agreement (“Agreement”) and agree as follows: WHEREAS, the Petitioner is an applicant for home health agency licensure pursuant to Chapter’400 Part IV, Florida Statutes (2004), and Rule 59A-8, Florida Administrative Code, (2004); and WHEREAS, the Agency has jurisdiction by virtue of being the regulatory and licensing authority over licensure of home health agencies pursuant to Chapter 400, Florida Statutes; and WHEREAS, the Agency served the Petitioner with a Notice of Intent to Deny on or about June 21, 2005, notifying the party of its intent to deny Petitioner’s initial application for home health agency licensure; and EXHIBIT tabbies” WHEREAS, the Petitioner requested a formal administrative hearing by submitting a Petition for Formal Hearing; and WHEREAS, the parties have agreed that a fair, efficient, and cost effective resolution of this dispute would avoid the expenditure of substantial sums to litigate the dispute; 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 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, the Petitioner agrees to a withdrawal of its Petition for Formal Hearing; agrees to waive any and all appeals and proceedings; agrees to waive compliance with the form of the Final Order (findings of fact and conclusions of law) to which it may be entitled including, but not limited to, an informal proceeding under Subsection 120.57(2), a formal proceeding under Subsection 120.57(1), appeals under Section 120.68, Florida Statutes; and declaratory and all writs of relief in any court or quasi-court (DOAFD of competent jurisdiction. Provided, however, that no agreement herein, shall be deemed a waiver by either party of its right to judicial enforcement of this stipulation. 4. Upon full execution of this agreement, the parties agree that the Petitioner’s Petition for Formal Hearing is deemed withdrawn. 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. nN 6. By executing this Agreement, the Petitioner neither admits nor denies the allegations raised in the Notice of Intent to Deny, and the Agency asserts the validity of the allegations raised in the Notice of Intent to Deny referenced herein. 7... 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. ' 8. Each party shall bear its own costs and attorney’s fees. 9. This Agreement shall become effective on the date upon which it is fully executed by all the parties. « 10.,, The Petitioner for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the 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 the Petitioner or related facilities. “11. This Agreement is binding upon all party’s herein and those identified in the aforementioned paragraph ten of this Agreement. 12 The undersigned have read and understand this Agreement and have authority to bind their respective principals to it. 13. This Agreement contains the entire understandings and agreements of the parties. ua 14. This Agreement supersedes any prior oral or written agreements between the parties. 15. This Agreement may not be amended except in writing. Any attempted assignment of this Agreement shall be void. All parties agree that a facsimile signature suffices for an original signature. 16. The following representatives hereby acknowledge that they are duly authorized to enter into this Agreement. Elizabeth Dudek Deputy Secretary Managed Care and Health Quality Assurance Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 DATED: _ /# thy GLa s (Clete Colpenor Christa Calamas, General Counsel Florida Bar No. 0142123 Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #3 Tallahassee, Florida 32308 DATED: _7 ial ae J G Clontz, Esquire General Counsel HealthEssentials Solutions, Inc. 9510 Ormsby Station Road, Suite 101 Louisville, Kentucky 40223-4082 Counsel for Petitioner, Specialized Home Care Services of Central Florida, Inc., d/b/a Best Choice Home Health Care DATED: & fax oS

Docket for Case No: 05-002470