. JUN-18-2008 HON 08:02 Pit FAX NO, P. O2 Os Wy ‘ hh & 4) Meg STATE OF FLORIDA a oe AGENCY FOR HEALTH CARE ADMINISTRATION ap ely Ay 4 Wi OSs “0 REST Oe? “RY is ty ! STATE OF FLORIDA, AGENCY FOR - EE HEALTH CARE ADMINISTRATION, —_ HfL fi aus Petitioner, . ¥S. Case No. 2006004728 CERTIFIED MAIL # HEALTHSOQUTH CORPORATION, dib/a 7004 1160 0003 3739 1298 HEALTHSOUTH REHABILITATION HOSPYTAL OF SPRING HILL, Respondent. } ADMINISTRATIVE COMPLAINT Petitioner, the Florida Agency for Health Care Administration (“ANCA”), through undersigned counsel, files this Administrative Complaint against the above-named Respondent (“Respondent”) pursuant to Sections 120.569 and 120.57, Florida Statutes (2005)', and alleges: NATURE OF THE ACTION 1. This is an action to impose an administrative fine in the amount of $189,800 (the “fine amount”) against Respondent, pursuant to Section 408.040, Florida Statutes, and Florida Administrative Code Rules 59C-1.013 and 59C-1.021, ‘Unless otherwise noted, al} statutes and rules hereinafter cited are to the indicated year’s version of the statute or rule because this is the controlling year in question. Puge } of 9 Fyyat SA" _ JUN-19-2006 HON 06:02 PI FAX NO. P, 2. For the calendar year 2005 (the “calendar year”), Respondent failed ta comply with the Medicaid and charity care condition upon its Certificate of Need (“CON”), a copy of which is attached to this complaint as Exhibit A. JURISDICTION AND VENUE 3. This tribunal has jurisdiction over Respondent, pursuant to Sections 120.569 and 120.57, Florida Statutes, and also Sections 408.031- 408.045, Florida’s “Health Facility and Services Development Act.” 4, Venue is determined by Florida Administrative Code Rule 28-106.207. PARTIES 5. Pursuant to Chapter 408, Flonda Statutes, and Chapter 59C-1, Florida Administrative Code, AHCA is the licensing and enforcing authority with regard to conmmunity nursing home laws aud rules. 6. Respondent is a corporation authorized under the laws of Florida to do business. Respondent operates a comprehensive medical rehabilitation hospita) located at 12440 Cortez Boulevard, Brooksville, Florida 34613, and is the licensee on the CON issued on June 20, 2000, to establish a 60-bed freestanding comprehensive medical rehabilitation hospital in Hemando County with the condition that a minimum of three percent (3%) of the total annual patient days in the 60-bed facility shall be provided to Medicaid and charity patients on a combined basis. The CON number is 9226; a copy of the CON is attached to this complaint as Exhibit A. Page 2 of 9 JUN-18-2008 MON 08:02 Pri FAX NO P. O¢ COUNT I Respondent failed to meet its Medicaid and charity patient condition Section 408.040, Florida Statutes Florida Administrative Code Rule 59C-),013 Florida Administrative Code Rule 59C-1,021 7. AHCA re-alleges paragraphs 1-6 above. 8. Respondent failed to comply with its Medicaid. and charity patient condition as reported to the Agency in its facility report for the year 2005, a copy of which is attached to this complaint as Exhibit B. 9. Respondent failed to comply with the condition set forth in its CON, as required by Section 408.040, Florida Statutes, and Rule 59C-1.013, Florida Administrative Code, which provide, in part, as follows: 403.040 Conditions and monitering (1)fa) The agency may issuc a certificate of necd, or an exemption, predicated ypon statements of intent expressed by an applicant in the application for a certificate of need, Any conditions imposed on a certificate of necd or an exemption based on such statements of intent shall be stated on the face of the certificate of need or in the exemption approval. {b) The agency may consider, in addition to the other criterin specified in ¢. 408.035, a statement of intent by the applicant that 2 specified percentage of the annual patient days at the facility will be utilized by patients eligible for care under Title XIX of the Social Security Act. Any certificate of need issued ta a nursing home in reliance upon an applicant's statements that a specified percentage of annual patient days will be utilized by residents eligible for care under Tithe XIX af the Social Security Act must include a statement that such certification is a condition of issuance of the certificate of need, The ccrtificate-of-need program shall notify the Medicaid program office and the Department of Elderly Affairs when it imposes conditions as authorized in this paragraph in an area io which a comounity diversion pilot project is implemented. {c) A certificate holder or an exemption holder may apply to the agency for ¢ modification of conditions imposed under paragraph (a) or paragraph (b). If the holder of a certificnte of need or an exemption demonstrates good cause why the certificate or exemption should be modified, the agency shall reissua the certificate of nced or exemption with such modifications as may be appropriate, The agency shall! by rule define the factors constituting good cause for modification. (d) If the holder of a certificate of need or an exemption fails to comply with a condition upon which the issuance of the certificate or exemption was predicated, the agency may assess an administrative fine against the certificate holder in an amount not to exceed $1,000 per friture per day. Failure to annually report conypliance with any condition upon which the isewance of the certificate or exemption was predicated constitutes noncompliance. In assessing the penalty, the, agency shall take info account as mitigation the degree of nonccunplience. Proceeds of such penalties shall be deposited io die Public Medicaid Assistance Trust Fund, ad S9C-1.013 Monitoring Proceduces (4) Reporting Requirements Subsequent to Licensure ar Commencement of Services. All holders Of a certificate of need that was issued predicated upon conditions cxpressed on the face of the Page 3 of 9 _ JUN-19-2008 MON 06:03 PM FAX NO. 10. certificate of need shall provide annual compliance reports to the agency, The reporting periad shall be January I thraugh December 31 of each year. The holder of a certificate of need who begun operation after January ft will report fram the date operation began through December 31. The compliance report shal] be submitted no later than April 1 of the subsequent year. (a) The compliance report will contain’ information necessary for an assessment of compliance with conditions on the certificale of need, utilizing measures, such as a percentage of patiant days, thar are consistent with the stated condition. The following informatioa shall be provided in the holder's annual compliance report: 1, The time periad covered by the measures; 2. The measure for assessing complinnce with each of the conditions identified and dcscrihed on the face of the certificate of oced; 3. The way in which the conditions were evaluated by applying the measures; 4. The data sources used to generate information about the conditions that were measured; 5. The person and position responsitie for supplying the complianes report; 6, Any other information necessary for the agency to determine compliance with conditions; and 7, If applicable, the reason or reasons, with supporting data, why the certificate of need holder was unable to meet the conditions xct forth on the face of the certificate of need. (b) A change in the licensee for a facility or service does not affect the obligation for that theility or service fo continue to meet conditions impased on a certificate of need and io provide annual condition compliance reports. {c) Conditions imposed on a certificate of need may be modified consistent with Rule 59C- 1,019, FAC. (5) Violation of Certificate of Need Conditions, Health care providers found by the agency to be in noncompliance with canditions sct forth in their certificate of need shal] be fined as defined in Rule 59C-1.021, AL, The forcgoing violation warrants imposition of the above-mentioned fine amount pursuant to Florida Administrative Code Rule 59C-1.021, which provides, in part: 59C-1.021 Penalties. (1) General Provisions, The agency shall initiate sdministrative procecdings for revocation of a certificate of ored for violation of paragraphs 408.040(2Xa) and (b), F.S., ar the assessment of administrative fines for failure to comply with conditions placed on a certificate of need as specified under Rule 59C-1,013, F.A.C oy (3) Penalties for Failure to Comply with Certificate of Need Conditions, The agency shall review the annual compliance repart submitted by the health care providers who are licensed ane operate the facilities or services and other pertinent data to assess compliance with certificate of need conditions, Providers who are not in compliance with centificate ef need conditions shal] be fined. For community nursing homes or hospital-based skilled nursing units certified as such by Medicare, the first compliance report on the status of conditions must be submitted 30 calendar days following the eighteenth month of operation or the first month where an 85 percent occupancy is achieved, whichever comes first. The schedule of fines is as follaws: (8) Facilities failing to comply with any conditions set forth on the Certificate of Need will be assessed a fing, not ta exceed 51,000 per failure per day. Jn usscssing the penalty the agency shall take inia account the depree of noncompliance. {bj} The assessed fine shall be paid to the agency within 45 calendar days after written nolification of assessment by certified mail or within 30 calendar days after final agency action Wf an administrative herring has been requested. If a health care provider desires it may remit payment according to a payment schedule accepted hy the agency, The health care provider must submit the schedule of payments to the agency within 30 calendar days after the date of receipt of the notification of assessment or Z] calendar days after final agency action. The fina] balance will be duc no Jater than 6 monthe after the health care provider has bern notified in writing by the agency of the amount of the assessed fine or 6 months after final agency action. Page 4 of 9 05 . JUN-18-20068 HON 06:04 Pi FAR NO, 11, ANCA, in determining the penalty imposed, considered the degree of noncompliance. WHEREFORE, AHCA demands the folowing relief: (1) enter factual and legal findings as set forth in Count 1; (2) impose the above-mentioned fine amount for the violation; and (3) impose such other relief as this tribunal may find appropriate. NOTICE RESPONDENT is hereby notified that it has a right to request an administrative hearing pursuant 10 Section 120.569, Florida Statutes. Specific options for administrative action are set out in the attached Election of Rights (one page) and explained in the attached Explanation of Rights (one page), All requests for hearing shall be made to the Agency for Health Care Administration and delivered to the Agency for Health Care Administration, 2727 Mahan Dr., Bldg. 3, MS #3, Tallahassee, Florida, 32308; Attention: Agency Clerk, RESPONDENT IS FURTHER NOTIFIED THAT IF THE REQUEST FOR HEARING IS NOT RECEIVED BY THE AGENCY FOR HEALTH CARE ADMINISTRATION WITHIN TWENTY-ONE (21) DAYS OF RECEIPT OF THIS ADMINISTRATIVE COMPLAINT, A FINAL ORDER WILL BE ENTERED. Submitted as of the date indicated on the below Certificate of Service. Donna La : LGA, Fla. Bar No. 0966193 Agency for Health Care Administration 2727 Mahan Drive, Bldg. 3, MS #3 Tallahassee, Florida 32308 Phone: (850) 922-5873 Fax: (850) 921-0158 or 413-9313 Page 5 of 9 ~» JUN-19-2006 HON 08:04 PI FAX NO, CERTIFICATE OF SERVICE THEREBY CERTIFY that a copy of the original Administrative Complaint, Explanation of Rights form, and Election of Rights form have been sent by U.S. Certified Mail, Return Receipt Requested (receipt # 704 1166 0003 3739 1898) to Respondent, Attention: Administrator, Healthsouth mht 0, of Spring Hill, 12440 Cortez Boulevard, Brooksville, Florida 34613 om thi: Ry (cheer June 2006. Donna WF cok Page 6 of 9 Exhibit B a ff i " Og HU) owe ff STATE OF FLORIDA Lio 5. DIVISION OF ADMINISTRATIVE HEARINGS Bir Py bs 07 ADE SIO a AGENCY FOR HEALTH CARE Heys Ray ADMINISTRATION, — - Mig (VE Petitioner, vs. Case No. 2004000522 HealthSouth of Tallahassee, Limited Partnership d/b/a/ HealthSouth Rehabilitation Hospital of Tallahassee, Respondent. / AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 2004000530 Lakeshore System Sves. of Fla., Inc., d/b/a/ HealthSouth Emerald Coast Rehabilitation Hospital Respondent. / AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 2004000549 HealthSouth of Treasure Coast, Inc. d/b/a/ HealthSouth Treasure Coast Rehabilitation Hospital, Respondent. AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 2004000583 HealthSouth of Fort Lauderdale, Limited Partnership d/b/a/ Dn. iy bs HealthSouth Sunrise Rehabilitation Hospital, Adit Soy» “07 BV Oe AE, STP i Respondent. Ah pe? Ve / . AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 2004000584 HealthSouth Rehabilitation Corporation d/b/a/ HealthSouth Rehabilitation Hospital, Respondent. AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs, Case No. 2004000586 South Miami Hospital, Inc., d/b/a/ Doctors Hospital, Respondent. AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. Case No. 2004000588 HealthSouth of Sea Pines, Limited Partnership d/b/a/ HealthSouth Sea Pines Rehabilitation Hospital, Respondent. SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS SES A EAN AND RELEASE OF CLAIMS This Release and Settlement Agreement (“Agreement”) is by and between HealthSouth Corporation, its Subsidiaries and Affiliates as identified in attached and incorporated “Exhibit A” (“HEALTHSOUTH”), and the Florida Agency for Health Care Administration (the “Agency”). RECITALS WHEREAS, the Agency served Administrative Complaints on HEALTHSOUTH to impose an administrative fine pursuant to Rule 59E-2.024(3)(a) and (5), and 59E- 2.025(1)(a), Fla. Admin Code, for failure to file the necessary cost reports as required by 408.061(4)(a), Florida Statutes, (2002), and Rule 59E-5 .201, Fla. Admin Code, and WHEREAS, HEALTHSOUTH will not have the audited financial statements necessary to file the cost reports in compliance with 408.061(4)(a), Florida Statutes, (2002), and Rule 59E-5.201, Fla. Admin Code until the first quarter of 2005, and WHEREAS, HEALTHSOUTH wishing to mitigate the fines associated with the failure to file the cost reports, submitted to the Agency on or about February 12, 2004 Petitions for Informal Administrative Hearing for all facilities which received an Administrative Complaint as contained in “Exhibit B”, and WHEREAS, HEALTHSOUTH anticipates receiving Administrative Complaint’s for the facilities contained in “Exhibit C”, and WHEREAS, the Agency has jurisdiction over licensure and fines of the hospitals pursuant to chapter 395, Florida Statutes (2002) and Chapter 59A-3, Fla. Admin Code, and WHEREAS, HEALTHSOUTH and Agency have reached a global settlement of the aforementioned fines until the first quarter of 2005 (ending March 31, 2005), THEREFORE, HEATHSOUTH and the Agency agree to the following: AGREEMENT a. In consideration of the amount of FIFTY-TWO THOUSAND THREE HUNDRED FIFTY-THREE AND 00/100 DOLLARS ($52,353.00), the Agency agrees to release HEALTHSOUTH (comprised of all facilities included on “Exhibit A”) from any and all fines as a result of a violation of 408.061(4)(a), Florida Statutes, (2002), and Rule 59E-5.201, Fla. Admin Code, for the failure to file a complete and accurate Prior Year Report for its 2002 Fiscal Year due on April 30, 2003, and b. Further, the Agency agrees to dismiss the Administrative Complaints filed against HEALTHSOUTH and agrees not to serve Administrative Complaints on the facilities listed in “Exhibit C” for a violation of 408.061(4)(a), Florida Statutes, (2002), and Rule 59E-5.201, Fla. Admin Code, until April 30, 2005. TERMS OF PAYMENT . a, HEALTHSOUTH agrees to make a single payment in the amount of FIFTY- TWO THOUSAND THREE HUNDRED FIFTY-THREE AND 00/100 DOLLARS ($52,353.00) pursuant to the Agency’s instructions for payment by electronic transfer or other means within ten (10) days of the Agency Final Order accepting this Agreement. NOTICE OF RELEASE a. This Agreement does not constitute admission of wrongdoing or error by either party. The parties believe that this matter should be settled because the parties have agreed to the terms contained within this agreement. . Each of the parties shall each bear their own attorney’s fees and costs. This Agreement constitutes the entire agreement between the parties and nothing herein shall be construed to be an admission of liability or wrongdoing by any party hereto. . No modification or waiver of any provision of this Agreement shall be valid unless a written amendment to this Agreement is completed and properly executed by the parties. The signatories to this Agreement, acting in a representative capacity, represent that they are duly authorized to act on behalf of the parties to this Agreement. . Venue for any action arising from this Agreement shall be in Leon County, Florida. This Agreement may be executed in separate counterparts, each of which, when executed on behalf of the parties hereto shall be deemed to be an original, and all of which counterparts together shall constitute one and the same instrument. . All notices pertaining to this Settlement Agreement shall be directed as follows: For HealthSouth: Thomas F, Panza, Esq, Panza, Maurer & Maynard, P.A. 3600 North Federal Highway, 3d Floor Ft. Lauderdale, Florida 33308 For AHCA: Elizabeth Dudek, Deputy Secretary Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 HEALTHSOUTH CORPORATION Fhomas F- 5 Panza, Maurer & Maynard, P.A. 3600 North Federal Highway, 3” Floor Ft. Lauderdale, FL 33308 954-390-0100 Attorneys for HealthSouth Corporation FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION By: egaelth tctehe Fez Alb ZS, OY FACLIENT\00053\04-1 5735\SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS.doc ate oe 4 Uy ‘4 By, EXHIBIT “A” fo &e Oho, 2 LICENSEE NAME/ADDRESS LICENSE BEESCEMEND >> NUMBER | CONZR TION | Healthsouth Rehabilitation Corporation 4278 $5,600-00 d/b/a Healthsouth of Largo Limited Partnership . 901 N. Clearwater/Largo Road Largo FL 34640 _| Healthsouth Rehabilitation Hospital of Sarasota d/b/a 4391 $5,600.00 Healthsouth of Sarasota Ltd. 3251 Proctor Road Sarasota FL 34231 Healthsouth Rehabilitation Corporation 4425 $5,600.00 d/b/a Healthsouth Rehabilitative Hospital 20601 Old Cutler Road Miami FL 33189 Healthsouth of Fort Lauderdale Limited Partnership 4251 $5,600.00 d/b/a Healthsouth Sunrise Rehabilitation Hospital. 4399 Nob Hill Road Healthsouth Treasure Coast Rehabilitation Hospital 1600 37" Street Vero Beach FL 32960 Sunrise FL 33351 Healthsouth of Treasure Coast, Inc. d/b/a 4221 $5,600.00 Healthsouth Sea Pines Rehabilitation Hospital 101 E. Florida Avenue Melbourne FL 32901 Healthsouth of Sea Pines, Limited Partnership d/b/a | 4276 $5,600.00 | d/b/a Healthsouth Rehabilitation Hospital of Tallahassee 1675 Riggins Road | Tallahassee FL 32308 | Healthsouth of Tallahassee, Limited Partnership 4256 $5,600.00 Lakeshore System Svcs. of Fla., Inc. d/b/a Healthsouth Emerald Coast Rehabilitation Hospital 1847 Florida Avenue Panama City, FL_32403 4458 i $5,600.00 South Miami Hospital, Inc. d/b/a Doctors Hospital 5000 University Drive Coral Gables, FL 33146 $7,553.00 EXHIBIT “B” [ LICENSEE NAME/ADDRESS Healthsouth Rehabilitation Corporation d/b/a Healthsouth Rehabilitative Hospital 20601 Old Cutler Road Miami FL 33189 Healthsouth of Fort Lauderdale Limited Partnership d/b/a Healthsouth Sunrise Rehabilitation Hospital 4399 Nob Hill Road Sunrise FL 33351 4251 Healthsouth of Treasure Coast, Inc. d/b/a Healthsouth Treasure Coast Rehabilitation Hospital 1600 37" Street Vero Beach FL 32960 4221 Healthsouth of Sea Pines, Limited Partnership d/b/a Healthsouth Sea Pines Rehabilitation Hospital 101 E. Florida Avenue Melbourne FL 32901 Healthsouth of Tallahassee, Limited Partnership d/b/a Healthsouth Rehabilitation Hospital of Tallahassee 1675 Riggins Road Tallahassee FL 32308 4276 4256 Lakeshore System Sves. of Fla., Inc. d/b/a Healthsouth Emerald Coast Rehabilitation Hospital 1847 Florida Avenue Panama City, FL_ 32403 4458 South Miami Hospital, Inc. d/b/a Doctors Hospital 5000 University Drive Coral Gables, FL 33146 4289 EXHIBIT “C” LICENSEE NAME/ADDRESS LICENSE NUMBER Healthsouth Rehabilitation Corporation 4278 d/b/a Healthsouth of Largo Limited Partnership 901 N. Clearwater/Largo Road Largo FL 34640 Healthsouth Rehabilitation Hospital of S arasota d/b/a 4391 Healthsouth of Sarasota Ltd. 3251 Proctor Road | Sarasota FL 34231 Bost OER. en = 3 FACLIENT\00053\04-15735\EXHIBITS TO SETTLM AGM Exhibit C Ky ma 12 py bop Sip. ae Thy ee ic STATE OF FLORIDA AGENCY FOR HEALTH CARE ADMINISTRATION bon STATE OF FLORIDA, AGENCY FOR lo A & SQ HEALTH CARE ADMINISTRATION, TMS AS 3 A OFS Petitioner, AHCA Nos.: 2004000586 vs. 2005005391 “ aA oe 7 HEALTHSOUTH CORPORATION ITS Gi wp SUBSIDIARIES AND AFFILIATES d/b/a, Ba © 4 22, Ca HLS. DOCTORS HOSPITAL, Respondent. / STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, AHCA Nos.: 2004000522 2005005384 Petitioner, 2005005393 vs. HEALTHSOUTH CORPORATION, d/b/a, H.S. REHAB HOSPITAL OF TALLAHASSEE, Respondent. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, AHCA Nos.: 2004000530 ys. 2005005385 2005005394 HEALTHSOUTH CORPORATION, d/b/a, H.S. EMERALD COAST REHAB HOSPITAL, Petitioner, Respondent. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, AHCA Nos.: 2005005395 Petitioner, 2005005386 YS. HEALTHSOUTH CORPORATION d/b/a, H.S. LARGO, Respondent. Pxhubut Co STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. HEALTHSOUTH CORPORATION d/b/a, H.S. SARASOTA, Respondent. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, Ys. HEALTHSOUTH CORPORATION d/b/a, H.S. TREASURE COAST, Respondent. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, YS. HEALTHSOUTH CORPORATION d/b/a, H.S. REHAB HOSPITAL, Respondent. STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Petitioner, vs. HEALTHSOUTH CORPORATION d/b/a, H.S. SUNRISE REHAB HOSPITAL, Respondent. AHCA Nos.: 200500538947 Mey, 2005005397) US oH o. 2004000549 2005005389 2005005398 AHCA Nos.: 2004000584 2005005402 2005005392 AHCA Nos.: 2004000583 2005005390 2005005401 AHCA Nos.: hie Vip é eg fe Ly 6 & STATE OF FLORIDA, AGENCY FOR f> ™* a HEALTH CARE ADMINISTRATION, ANfliz ~ Py LAS é: GH, De , Petitioner, AHCA Nos.: 2004000588 “GS, Oo 7 vs. 2005005387. “ty Gs “14 2005005396 eee HEALTHSOUTH CORPORATION, d/b/a, H.S. SEA PINES REHAB HOSPITAL, Respondent. FINAL ORDER The State of Florida, Agency for Health Care Administration [hereinafter “AHCA”], having entered into a Stipulation and Settlement Agreement including Amendment to previous Agreement [hereinafter “Current Agreement”] with the parties to these proceedings, and being otherwise fully advised in the premises, finds as follows, IT IS ORDERED that: 1. The attached Current Agreement is approved and adopted as part of this Final Order and the parties are directed to comply with the terms, including but not limited to their respective separate filings of Prior Year Reports for Respondent’s 2002, 2003, and 2004 Fiscal Years of the Current Agreement. 2. An administrative fine of $161,459.00 is hereby imposed upon HEALTH SOUTH CORPORATION, ITS SUBSIDIARIES AND AFFILIATES as identified in the Current Agreement. The fine is due and payable to the Agency within thirty (30) days of the date of rendition of this Order. 3. Checks should be made payable to the “Agency for Health Care Administration.” The check, along with a reference to the AHCA Case Numbers, should be sent directly to: Jean Lombardi Agency for Health Care Administration Office of Finance & Accounting 2727 Mahan Drive, Mail Stop #4 TaHahassee, Florida 32308 4. Unpaid fines will be subject to statutory interest and may be collected by all methods legally available. 5. The above-styled cases are hereby dismissed in accordance with the Current Agreement. DONE and ORDERED this eas) day of Aepsut 2005 in Tallahassee, Leon County, Vas Dud Alan Levine, Agency for Heglth Care Administration Florida. 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: Elizabeth Dudek Deputy Secretary Division of Health Quality Assurance Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #9 Tallahassee, Florida 32308 (Interoffice Mail) Jean Lombardi Finance & Accounting Agency for Health Care Administration 2727 Mahan Drive, Mail Stop #14 Tallahassee, Florida 32308 (Interoffice Mail) Eric R. Bredemeyer Assistant General Counsel Agency for Health Care Administration 2295 Victoria Avenue, Room 346C Ft. Myers, Florida 33901-3884 (Interoffice Mail) Thomas F. Panza, Esquire Attorney and Representative for HealthSouth Panza, Maurer & Maynard, P.A. 3600 North Federal Highway, 3" Floor Fort Lauderdale, Florida 33308 (U.S. Mail) Wendy Adams Facilities Intake Unit (Interoffice 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 30” day of Ae asl? 2005. Richard Shoop, Agenc¥C Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32303 (850) 922-5873 + 07/27/2005 12:15 FAX 994390799". PANZA NAURER MAYNARD _ igo03 STATE OF FLORIDA apd p AGENCY FOR HEALTH CARE ADMINISTRATION “0/7175, wy be gels ; ag ten, “1 2005005357; Rahsb0s392; 2005005393*2005(05394: 2005005395; 2005005396; 2005005397; 2005005398 2005005401; 2005005402 AHCA Case Nos. 2004000522; 2005005384; 2004000530; 2005005385; 2004000549; 2005005386; 2004000583; 2005005387: 2004000584; 2005005388; 2004000586; 2005005389; 2004000588; 2005005390 STATE OF FLORIDA, AGENCY FOR HEALTHCARE ADMINISTRATION, Petitioner, vs. HEALTHSOUTH CORPORATION, Respondent. Se ed ee STIPULATION AND SETTLEMENT AGREEMENT ‘INCLUDING AMENDMENT TO PREVIOUS AGREEMENT This Stipulation and Settlement Agreement (hereinafter "Current Agreement") is entered into by and between the STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (hereinafter "“AGENCY"), and HEALTHSOUTH CORPORATION, ITS SUBSIDIARIES AND AFFILIATES, as identified in the attached “Exhibit AA,” as if this Exhibit were fully stated herein (hereinafter “HEALTHSOUTH” or “FACILITIES”). WHEREAS, the AGENCY served Administrative Complaints upon HEALTHSOUTH through which it sought to impose administrative fines against HEALTH SOUTH for violations involving the Prior Year Reports for its 2002 Fiscal Year which were the subject of a Settlement Agreement and Release of Claims (hereinafter “Previous Settlement Agreement”) approved and adopted by the Agency’s Final Order with a reference number of 04-59PH, done and ordered on April 23, 2004, and which Previous Settlement Agreement with Exhibits and said Final Order are hereby included as if stated in full; and WHEREAS, this Previous Settlement Agreement provided for written amendment if completed and properly executed by the parties; and WHEREAS, this Current Agreement in addition to amending in writing the Previous Settlement Agreement wil! dispose of certain matters concerning the filing of the Prior Year Reports for the Fiscal Years 2003 and 2004 of HEALTHSOUTH;, * "97/27/2005 12:15 FAX 9543907997~. PANZA MAURER MAYNARD . . 'goo4 WHEREAS, the Agency has jurisdiction over licensure and fines of hospitals, including those identified in Exhibit AA pursuant to Chapters 395 and 408, Florida Statutes (2004), and Chapters 59A-3 and 59E-2, Florida Administrative Code (2004). WHEREAS, HEALTHSOUTH anticipates that it will not have the Pnor Year Reports for its 2002 Fiscal Year filed until July 31, 2005; its Prior Year Reports for its 2003 Fiscal Year filed until July 31, 2005; and its Prior Year Reports for its 2004 Fiscal Year filed unti] July 3], 2006; and WHEREAS the Agency had in the Previous Settlement Agreement agreed to dismiss Administrative Complaints then filed against HEALTHSOUTH and not io serve additional Administrative Complaints upon facilities of HEALTHSOUTH identified in “Exhibit C” appended to the Previous Settlement Agreement until April 30, 2005; and WHEREAS, HEALTHSOUTH timely filed a request for an informal administrative hearing to mitigate the AGENCY's intent to levy administrative fines based upon the failure of HEALTHSOUTH and ils FACILITIES to file Prior Year Reports for its 2002 Fiscal Year; and that in anticipation of HEALTHSOUTH’s inability to have these reports filed by April, 30, 2005, as provided for in the Previous Settlernent Agreement, as well as, that HEALTHSOUTH anticipates receiving Administrative Complaints levying a resumption of fines for periods subsequent to the Previous Settlement Agreement, and for additional fines, for its alleged failure to file the Prior Year Reports for its 2002, 2003 and 2004 Fiscal Years; and in consideration of HEALTHSOUTH’s expressed desire to mitigate the fines associated with the alleged continuing and new failures to file the Prior Year Reports; and WHEREAS, representatives of the AGENCY and HEALTHSOUTH have reviewed the issues to be presented in these matters, and desire to amicably resolve the pending issues raised in these matters having reached a global settlement of the aforementioned fines; NOW THEREFORE, in consideration of the mutual covenants contained herein, and other valuable consideration, the sufficiency of which is acknowledged by all parties, it is hereby stipulated and agreed by and between the parties as follows: 1. All recitals referred to in the matters referred to above, are true and correct, expressly incorporated herein, and constitute binding findings of the parties. The parties to any and all of the above-styled proceedings, and those as identified in Exhibit AA, a) waive and agree to 97/27/2005 12:15 ,FAX 9543907997" PANZA MAURER MAYNARD __ ig 005 forego any hearing, including but not limited to, any request under Florida Statutes (2004) for an informal proceeding under §120.57 (2), or for a formal proceeding under §120.57 (1), and any appeal under §120.68, and any declaratory relief or relief sought through any writ, of or from any court or administrative tribunal of competent jurisdiction; b) to waive any and all appeals or further proceedings regarding these matiers; c) to waive any objections as to the form of the Final Order (e.g., regarding the presentation of findings of fact and conclusions of law), subject to the execution of this Current Agreement; 2. After a grace period of forty-five calendar days extended to HEALTHSOUT SS og the due date for filing specified in Exhibit AA for each Prior Year Report for its 2004, 2003 and 2004 Fiscal Years concerning the respectively identified facility’s reports, the Agency may serve Administrative Complaint(s) for a violation of §408.061(4)(a), Florida Statutes (2004), and Rule 59E-5.201, Florida Administrative Code (2004), upon HEALTHSOUTH. However, the Agency agrees not to serve an Administrative Complaint prior to the passage of the forty-five day grace period (e.g. Prior Year Reports for HealthSouth Tallahassee for FY 2002 and 2003 are both due to be filed with the Agency by July 31, 2005, and an administrative complaint will not be served before September 15, 2005, for any failure by HEALTHSOUTH to file these reports. This grace period includes any time for mailing. Any Administrative Complaint served after the grace period may include, at the sole discretion of the Agency, for purposes of calculating any fine allegedly then due for a violation of §408.061(4)(a), Florida Statutes (2004), and Rule 59E-5.201, Florida Administrative Code (2004), fines accruing as of August 1, 2005, and continuing as provided by Rule 59E-2.025, Florida Administrative Code (2004), Guidelines for Calculation of Administrative Fines). Reports for FY 2004 are not due per this Current Agreement in accordance with Exhibit AA until July 31, 2006, with a grace period precluding serving any Administrative Complaint before September 15, 2006, concerning violation of §408.061(4)(a), Florida Statutes (2004), and Rule 59E-5.201, Florida Administrative Code (2004). 3. The Previous Settlement Agreement is superceded by this Current Agreement insofar as this Current Agreement updates or alters a specific term of the Previous Settlement Agreement and ' ' 97/27/2005 12:15 FAX 954390799°- PANZA MAURER MAYNARD . (006 ‘jj a Final Order of April 23, 2004. Otherwise, the terms of the Previous Settlement Agreement and Final Order continue to operate fully. Should there occur a dispute as to interpretation of these two agreements, they should be read so as to give priority and reason to the terms of the Current Agreement. Should terms of either of the agreements be determined by a court of competent jurisdiction to be unenforceable, then the remaining terms continue in full force and effect; however; in no uncertain terms do either of these agreements excuse in any manner the eventual filing of any FY reports by HEALTHSOUTH and those FACILTIES identified in Exhibit AA, the requirements for accuracy of any and all filed FY reports, or any state and/or federal enforcement provisions ensuring such accuracy. This Current Agreement supercedes any prior oral agreements between the parties, and any prior written agreements between the parties except as herein strictly described concerning the Previous Settlement Agreement. 4. HEALTHSOUTH agrees that it will pay, in full resolution of the issues raised in these matters, for the FY reports and FACILITIES as identified in Exhibit AA, an administrative fine of One Hundred Sixty-One Thousand Four Hundred Fifty-Nine Dollars ($161,459.00) to the AGENCY within thirty (30) days of the rendition of a Final Order by the AGENCY incorporating the terms of this Current Agreement. The AGENCY shall timely provide a copy of the Final Order to counsel for HEALTHSOUTH at the address listed below. 5. Each party to this proceeding shall bear its own attorneys’ fees and costs. 6. This Current Agreement becomes effective as of the date that it is executed by both parties. Upon full execution of this Current Agreement, the Agency shall enter a Final Order adopting and incorporating the terms of this Current Agreement and that any above-style case, or case identified in Exhibit AA, heretofore commenced be dismissed. 7. The parties stipulate and agree that this Stipulation and Settlement Agreement (the Current Agreement) is a Jegal and binding document and is fully enforceable against all parties in any court of competent jurisdiction. However, any action to enforce the terms of this Agreement shall be brought in the appropriate tribunal in Leon County, Florida. The signatories hereto represent and warrant that they are vested with the authority to execute this Current > 07/27/2005 12:15 FAX 95439079/"" PANZA MAURER MAYNARD 11. \go07 Agreement on behalf of their respective principals, and as duly designated representatives, to fully bind such principals. HEALTHSOUTH, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the AGENCY, 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 these matters 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 HEALTHSOUTH or related entities. The AGENCY, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge HEALTHSOUTH, 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 these matters and HEALTHSOUTH’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 AGENCY or related entities. This Agreement will, in all respects, be interpreted, enforced and governed under the laws of the State of Florida. The language of all parts of this Current Agreement will, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against either party based upon initial authorship. By executing this Stipulation, HEALTHSOUTH does not admit the allegations in the matters raised herein, but acknowledges and accepts that the Agency asserts the validity of its allegations. Both parties agree that this Current Agreement does not waive the Agency’s ability to enforce a Final Order based upon this Agreement pursuant to §120.69, Florida Statutes, (2004). “97/27/2005 12:16 FAX 954390799). PANZA MAURER MAYNARD {goos 12. Absolutely no notice is required to be sent by the Agency delineating the due dates for reports or the approach or passage of any grace period(s) prior to the service of any Administrative Complaints. HEALTHSOUTH understands and explicitly accepts these terms. 13. This Agreement is not effective and binding until executed by all parties hereto. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed to be an original, but all of which together shal] constitute one and the same instrument. Facsimiles of signatures shall be deemed to be the same as original signatures. as F, Panza, Esq Attomey and Representative for HealthSouth Panza, Maurer & Maynard, P.A. 3600 North Federal Highway, 3 Floor Fort slaly FL 33308 Di setehte Pade Agency for alth Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 Dated: S/ AZ, , 2005 (Meicle Colencas ‘WithanrH Reberts-(HRISTA CALAMAS Aeting-General Counsel Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 Dated: a] It , 2005 FACLIENT\W00053\04-15735\Second Settlement Agreement and Release of Claims.doc HEALTHSOUTH DELINQUENT HOSPITAL FINANCIAL REPORTS Type of Alleged sf Original H.S.agrees Facility H.S. means Case Report Reason for {Due Date _|to file Number |HEALTHSOUTH Number Actual FY [Complaint ie Report |FY Report 11-0021 H.S. Tallahassee 2004000522/}2002 Actual |Failure to File {04/30/2003 07/31/2005 23-960013 |H.S. Emerald Coast 2004000530|/2002 Actual [Failure to Fite {04/30/2003 | 07/31/2005 J 11-0045 |H.S. Largo 2002 Actual |Failure to File |04/30/2003 | 07/31/2005 41-0027 |H.S. Sea Pines 2004000588|2002 Actual |Failure to File {04/30/2003 | 07/31/2005 11-0013 _|H.S. Sarasota 2002 Actual |Fallure to File [04/30/2003 | 07/31/2005 41-0017 |H.S. Treasure Coast | 2004000549|2002 Aciual {Failure to File 04/30/2003 | 07/31/2005 70-3028 |Sunrise Rehab Hosp. | 2004000583)2002 Actual |Failure to File {04/30/2003 | 07/31/2005 70-0020 _|H.S. Doctors Hospital [2004000586/2002 Actual jFailure to File {04/30/2003 07/31/2005 40-3038 |H.S. Rehab Hosp. 2004000584 |/2002 Actual |Failure to File {04/30/2003 | 07/31/2005 11-0021 _|H.S. Tallahassee 2005005384(2003 Actual |Failure to File [04/30/2004 | 07/31/2005 23-960013 |H.S. Emerald Coast 2005005385|2003 Actual | Failure to File {04/30/2004 07/31/2005 11-0045 |H.S. Largo 2005005386 2003 Actual |Failure to File {04/30/2004 | 07/31/2005 _ 11-0027 _|H.S. Sea Pines 2005005387 /|2003 Actual | Failure to File $04/30/2004 07/31/2005 11-0013 |H.S. Sarasota 2005005388 /|2003 Actual [Failure to File {04/30/2004 | 07/31/2005 11-0017 _|H.S. Treasure Coast | 2005005389/2003 Actual [Failure to File }04/30/2004 | 07/31/2005 10-3028 [H.S.SunriseRehabHos | 2005005390|2003 Actual [Failure to File {04/30/2004 | 07/31/2005 10-0020 |H.S. Doctors Hospital | 2005005391/2003 Actual |Failure to File 102/13/2004 | 07/31/2005 10-3038 —[H.S. Rehab Hosp. 2005005392/|2003 Actual [Failure to File {04/30/2004 | 07/31/2005 | 11-0021 __|H.S. Tallahassee 2005005393|2004 Actual |Failure to File {04/30/2005 | 07/31/2006 | 23-960013|H.S. Emerald Coast | 2005005394|2004 Actual [Failure to File {04/30/2005 | 07/31/2006 11-0045 _|H.S. Largo 2005005395 }2004 Actual |Failure to File (04/30/2005 07/31/2006 11-0027 |H.S. Sea Pines ___| 2005005396|2004 Actual [Failure to File 04/30/2005 | 07/31/2006 41-0013 _|H.S. Sarasota 2005005397 |2004 Actual |Failure to File {04/30/2005 | 07/31/2006 11-0017 |H.S. Treasure Coast | 2005005398 }2004 Actual |Failure to File {04/30/2005 | 07/31/2006 10-3028 |H.S.SunriseRehabHos | 2005005401|2004 Actual [Failure to File {04/30/2005 | 07/31/2006 ] 10-3038 |H.S, Rehab Hosp. 2005005402!2004 Actual |Failure to File (04/30/2005 | 07/31/2006 j | THIS EXHIBIT IDENTIFIES HEA |LTHSOUTH |CORPORATION FACILITIES IN FLORIDA THE SUBJECT OF A STIPULATI [ON AND SETTLEMENT AGREEMENT BETWEEN HEALTHSOUTH EXHIBIT AA CORPORATION AND STATE OF |FLORIDA, AGENCY FOR HEALTHCARE ADMINISTRATION HEALTHSOUTH DELINQUENT HOSPITAL FINANCIAL REPORTS |Date Date Number of Total Total Facility Facility Case Type of Reason for {Due Date |Information Days for Rate for| Individual{ Corporate Number {Name Number Report Complaint lofReport |Received | Calc ofFine| Daily fine Fine Fine I 11-0021 _|H.S. Tallahassee 2004000522/2002 Actual [Failure to File [04/30/2003 | 07/31/2005 23-960013 |H.S. Emerald Coast 2004000530(2002 Actual |Failure to File [04/30/2003 | 07/31/2005 11-0045 1H.S. Largo 2002 Actual |Failure to File ]04/30/2003 | 07/31/2005 11-0027 _[H.S. Sea Pines 2004000588|2002 Actual [Failure to File {04/30/2003 | 07/31/2005 411-0013. {H.S, Sarasota 2002 Actual [Failure to File {04/30/2003 | 07/31/2005 11-0017 __|H.S. Treasure Coast _ | 2004000849/2002 Actual {Failure to File 04/30/2003 | 07/31/2005 10-3028 |Sunrise Rehab Hosp. | 2004000583[2002 Actual |Failure to File {04/30/2003 | 07/31/2005 10-0020 _[H.S. Doctors Hospital | 2004000586|2002 Actual [Failure to File {04/30/2003 | 07/31/2005 40-3038 |H.S. Rehab Hosp. 2004000584|2002 Actual iFailure to File {04/30/2003 | 07/31/2005 i I 11-0021 H.S. Tallahassee 2005005384 |2003 Actual {Failure to File {04/30/2004 | 07/31/2005 457| $ 20 $9,140 23-960013 |H.S. Emerald Coast 2005005385|2003 Actual |Failure to File [04/30/2004 | 07/31/2005 457| 3 20 $9,140 141-0045 4H.S. Largo 2005005386 |2003 Actual |Failure to File 104/30/2004 | 07/31/2005 457| $ 20 $9,140 11-0027 _|H.S. Sea Pines 2005005387 |2003 Actua’ re to File {04/30/2004 | 07/31/2005 457: 3 20 $9,140 11-0013 {H.S. Sarasota 200500538812003 Actual ure to File {04/30/2004 | 07/31/2005 457|$ 20 $9,140 11-0017 _|H.S. Treasure Coast | 2005005389|2003 Actual {04/30/2004 | 07/31/2005 457| 3 20 $9,140 10-3028 |Sunrise Rehab Hosp. | 2005005390/2003 Actua 104/30/2004 | 07/31/2005 457) 3 20 $9,140 10-0020 _|H.S. Doctors Hospital | 2005005391|2003 Actual {02/13/2004 | 07/31/2005 534|$ 28.50 | $15,219 10-3038 |H.S. Rehab Hosp. 2005005392/2003 Actual {04/30/2004 | 07/31/2005 457! $ 20 $9,140 4 | Total § 88,339 TT 11-0021 H.S. Tallahassee 2005005393} 2004 Actual |Failure to File {04/30/2005 | 07/31/2006 457| $ 20 $9,140 23-960013 [H.S. Emerald Coast 2005005394 | 2004 Actual {Failure to File [04/30/2005 07/31/2006 4571 $ 20 $9,140 11-0045 jH.S. Largo 2005005395 |2004 Actual jFailure to File {04/30/2005 | 07/31/2006 457) $ 20 $9,140 11-0027 _|H.S. Sea Pines 2005005396!2004 Actual |Failure to File {04/30/2005 | 07/31/2006 457| $ 20 $9,140 11-0013 _|H.S. Sarasota 2005005397 2004 Aciual |Failure to File {04/30/2005 07/31/2006 457| 3 20 $9,140 14-0017 |H.S. Treasure Coast 2005005398 | 2004 Actual | Failure to File 04/30/2005 | 07/31/2006 4571 $ 20 $9,140 10-3028 — Sunrise Rehab Hosp. | 2005005401|2004 Actual Failure to File [04/30/2005 | 07/31/2006 457| $ 20 $9,140 49-0020 |H.S-Decters Hospital [NAA 2004 Actual | 10-3038 |H.S. Rehab Hosp. 2005005402|2004 Actual |Failure to File {04/30/2005 | 07/31/2006 4571 $ 20 $9,140 Total $ 73,120 - | -- Total Finel $161,459 i Exhibit D Fd STATE OF FLORIDA o% Ny ) ~ £ ry 2 AGENCY FOR HEALTH CARE ADMINISTRATION , ~ EM, : STATE OF FLORIDA, AGENCY FOR ) 2006001 see. Siay . 08 HEALTHCARE ADMINISTRATION, ) 2006001359, 5 TR 4 ) 2006001593 hibpges "Ve Petitioner, ) 2006001594 . y- 2006001595 vs. ) AHCA Case Nos. 2006001596 ) 2006001597 HEALTHSOUTH CORPORATION, ) 2006001598 ) 2006001600 Respondent. ) ) STIPULATION AND SETTLEMENT AGREEMENT INCLUDING AMENDMENT TO TWO PREVIOUS AGREEMENTS This Stipulation and Settlement Agreement (hereinafter "Newly Revised Agreement," or “NRA”) is entered into by and between the STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION — (hereinafter "AGENCY"), and HEALTHSOUTH CORPORATION, ITS SUBSIDIARIES AND AFFILIATES, as identified in the attached “Exhibit AAA,” as if this Exhibit were fully stated herein (hereinafter “HEALTHSOUTH,” “RESPONDENT,” or “FACILITIES”). WHEREAS, the AGENCY served Administrative Complaints upon HEALTHSOUTH through which it sought to impose administrative fines against HEALTHSOUTH for violations involving the Prior Year Reports for its 2002 Fiscal Year (hereinafter “FY”) which were the subject of a Previous Settlement Agreement and Release of Claims (both then and hereinafter referred to as the “Previous Settlement Agreement” or “PSA”) approved and adopted by the Agency’s Final Order with a reference number of 04- 59PH, done and ordered on April 23, 2004, and which Previous Settlement Agreement with Exhibits and said Final Order are hereby included as if they were fully stated herein; and WHEREAS, HEALTHSOUTH in advance of deadlines for filing the Prior Year Reports for 2003 and 2004, as well as some of the deadlines within the aforementioned Previous Settlement Agreement, in good faith knowing that it would be unable to timely complete the filings, reached another approved and adopted settlement approved containing both new/different and modified terms than the PSA, which were accepted as contained within the Agency’s Final Order filed by the Agency Clerk on August 30, 2005, which settlement agreement (both then and hereinafter referred to as the “Current Agreement” or “CA”) with its Exhibit (i.e. Exhibit AA) and said Final Order are included hereby as if fully stated herein; and WHEREAS, the PSA and CA provided for written amendment(s) if completed and properly executed by the parties; and WHEREAS, this Newly Revised Agreement, in addition to amending in writing the PSA and CA, will dispose of certain matters concerning a failure or inability by HEALTHSOUTH to file the Prior Year Reports for the Fiscal Years 2002 and 2003 relating to one of HEALTHSOUTH’s hospitals, and matters concerning the filing of the Prior Year Reports for FY 2005 of HEALTHSOUTH for the hospitals identified in Exhibit AAA; and WHEREAS, the Agency has jurisdiction over licensure and fines of hospitals, including those identified in Exhibits AA and AAA of the CA and NRA, respectively, pursuant to Chapters 395 and 408, Florida Statutes (2005), and Chapters 59A-3 and 59E-2, Florida Administrative Code (2005); and WHEREAS, HEALTHSOUTH anticipates that it will not have the Prior Year Reports for its FY 2005 for the hospitals identified within Exhibit AAA filed until September 15, 2006; and since the Final Orders of the Agency approving both the PSA and CA, HEALTHSOUTH has advised, and by this NRA notifies the Agency, that it will be unable to file the Prior Year Reports for HEALTHSOUTH DOCTORS HOSPITAL (Facility Number 10-0020) for the 2002 and 2003 Fiscal Years, or portions thereof, as had been previously agreed and anticipated; (See PSA and CA and their respective Exhibits) (Note: Due to HEALTHSOUTH no longer owning DOCTORS HOSPITAL, reports were not due for 2004 and beyond for this facility by HEALTHSOUTH.] and WHEREAS, HEALTHSOUTH expresses a desire to mitigate the fines associated with a failure to properly file based upon the following: its inability to file the Prior Year Reports for FY 2002 and FY 2003 on HEALTHSOUTH DOCTORS HOSPITAL (Facility Number 10-0020); its newly perceived recognition that its Prior Year Reports for FY 2005 for all the facilities identified in Exhibit AAA would miss their statutory filing deadlines because they would need to be based upon completed FY 2004 reports, the subject of the CA; and that the facilities and reports that were the subjects of the PSA and CA have otherwise completed their filings, or as to FY 2004 reports are expected to meet their prospective filing deadlines as provided for in the PSA and/or CA; and to resolve any other residual fine calculation/accrual and imposition issues for the completed filings of Prior Year Reports, the subjects of the PSA and CA; and WHEREAS, representatives of the AGENCY and HEALTHSOUTH have reviewed the issues to be presented in these matters, and desire to amicably resolve the pending issues raised in these matters and having reached a global settlement of the aforementioned fines; NOW THEREFORE, in consideration of the mutual covenants contained herein, and other valuable consideration, the sufficiency of which is acknowledged by all parties, it is hereby stipulated and agreed by and between the parties as follows: 1. All recitals referred to in the matters described above, are true and correct, expressly incorporated herein, and constitute binding findings of the parties. The parties to any and all of the above-styled proceedings, and those as identified in Exhibit AAA of this NRA, and as identified in the PSA and CA, a) waive and agree to forego any hearing, including but not limited to, any request under Florida Statutes (2005) for an informal proceeding under §120.57 (2), or for a formal proceeding under §120.57 (1), and any appeal under §120.68, and any declaratory relief or relief sought through any writ, of or from any court or administrative tribunal of competent jurisdiction; b) to waive any and al! objections to the form of the charging document, as necessary; c) to waive any and all appeals or further proceedings regarding these matters; d) to waive any objections as to the form of the Final Order (e.g., regarding the presentation of findings of fact and conclusions of law), subject to the execution of this NRA; HEALTHSOUTH agrees that it shall file the respective Prior Year Reports with duly audited financial statements for FY 2005 for each and every one of their facilities identified in Exhibit AAA on or before August 15, 2006. The negotiated filing deadlines for the Prior Year Report for FY 2004 are to be completed in accordance with the CA for those facilities therein identified, The Agency will process and receive the FY 2005 reports submitted by HEALTHSOUTH as filed; subject to meeting the criteria for acceptance in Chapters 395 and 408, Florida Statutes (2005), and Chapters 59A-3 and S9E-2, Florida Administrative Code (2005), and the remainder of the terms of this NRA. The parties agree and stipulate that the total possible fines owing under this NRA, exclusive of any breach of this agreement or failures by HEALTHSOUTH to file the Prior Year Reports for FY 2005 before September 15, 2005, are NINETY-NINE THOUSAND SIX HUNDRED EIGHTY ($99,680.00) and references hereinafter in this NRA to the terms “total negotiated fine” mean EIGHTY THOUSAND NINE HUNDRED TWENTY-EIGHT DOLLARS ($80,928.00). While admitting no wrongdoing, but acknowledging that the Agency asserts otherwise, HEALTHSOUTH agrees that it will pay, in full resolution of the issues raised and addressed in this NRA, an administrative fine of SIXTY-NINE THOUSAND FOUR HUNDRED TWENTY-EIGHT DOLLARS ($69,428.00) payable in two installments to the Agency. The first installment of FIFTY-NINE THOUSAND DOLLARS FOUR HUNDRED TWENTY- EIGHT DOLLARS ($59,428.00) shall be paid and delivered by HEALTHSOUTH within thirty (30) days of the rendition of the Final Order of the Agency incorporating the terms of this agreement (NRA) to the payee at the address specified in this Final Order, The second installment of TEN THOUSAND DOLLARS ($10,000.00) shall be paid and delivered by HEALTHSOUTH to the same payee as the first installment on or before October 1, 2006, however, this second payment need not be made and delivered to the Agency and no effort by the Agency to collect this second installment shall be made, if and only if, as expressly hereby conditioned, each and every one of the Prior Year Reports for FY 2005 for the facilities identified in Exhibit AAA with duly audited financial statements has been filed with and received by the AGENCY at its Financial Analysis Unit in Tallahassee, Florida, before September 15, 2006. HEALTHSOUTH agrees that any failure by it to timely pay and deliver this first installment, and file each and every one of the Prior Year Reports for FY 2005 (for the hospital identified in Exhibit AAA) before September 15, 2005, shall as of October 1, 2006, accelerate all outstanding amounts owing to the “total negotiated fine” of EIGHTY THOUSAND NINE HUNDRED TWENTY-EIGHT DOLLARS ($80,928.00). If so accelerated, and if the two prior installments ($59,428.00 and $10,000) respectively were made and received in full, the outstanding amount owing by HEALTHSOUTH to the AGENCY of the “total negotiated fine” would be ELEVEN THOUSAND FIVE HUNDRED DOLLARS ($11,500.00). HEALTHSOUTH explicitly agrees, stipulates, and accepts that the copy of the Final Order approving and adopting this stipulation and settlement agreement (the NRA), and by having attached to it a copy of this NRA, shall constitute the only notice and reminder HEALTHSOUTH will receive in this and related matters. Absolutely, no other notice is required to be sent by the Agency to effectuate the terms of this settlement agreement (NRA) and the Final Order approving and adopting it. Furthermore, this settlement agreement (NRA) when executed by HEALTHSOUTH shall constitute and satisfy any and all requirements of notice under Rule 59E-2.024(5), Florida Administrative Code (2005), for violations (of Chapter 408, Florida Statutes (2005) and Chapter 59E, Florida Administrative Code (2005)) for failing to properly file any and all Prior Year Reports for FY 2004 and FY 2005 of the facilities identified in Exhibits AA and AAA of the CA and NRA. HEALTHSOUTH confesses one of the reasons they have requested and agreed to the NRA is because they have been/will be/stipulate to be deemed by the Agency to have allegedly violated §408.061(4)(a), Florida Statutes (2005), which is a prerequisite for HEALTHSOUTH stipulating to the satisfaction of the notice requirement under Rule 59E-2,024(5), Florida Administrative Code (2005). HEALTHSOUTH further explicitly agrees and accepts that any unpaid fines or installments due under the NRA may be subject to statutory interest and may be collected by all methods legally available. Furthermore, the Respondent waives any right, cause, claim, offset, credit, lien, pledge or interest of any kind in the moneys and installments received by the Agency pursuant to the negotiated fines in the PSA, CA and this NRA. HEALTHSOUTH understands and explicitly accepts these terms except as to the very limited “crediting process” and limited amount contemplated in paragraph 6, immediately below. Furthermore, the Respondent explicitly agrees and accepts in addition to [emphasis added] the administrative fines treated in paragraphs 4. and 5. above, that should each and every one of the Prior Year Reports for FY 2004 and FY 2005 for the facilities identified in Exhibits AA (exclusive of HEALTHSOUTH DOCTORS HOSPITAL (Facility Number: 10-0020)) and AAA of the CA and this NRA, respectively, not be filed before September 15, 2006, the Agency may serve an Administrative Complaint(s) for a violation of §408.061(4)(a), Florida Statutes (2005), and Rule 59E-5.201, Florida Administrative Code (2005), upon HEALTHSOUTH for those Prior Year Reports for FY 2004 and FY 2005 still outstanding. Any Administrative Complaint so served on or after September 15, 2006, at the sole discretion of the Agency, and as explicitly hereby agreed by HEALTHSOUTH, for purposes of calculating any fine allegedly then due for a violation of §408.061(4)(a), Florida Statutes (2005), and Rule 59E-5.201 et seq., Florida Administrative Code (2005), may include fines for tardy filing or complete failure to file (at all) accruing as of August 1, 2006, and continuing, as provided by Rule 59E-2.025 et seq., Florida Administrative Code (2005), (Guidelines for Calculation of Administrative Fines], with there being only a credit for fines and assessments paid already by HEALTHSOUTH allowed for Prior Year Reports for FY 2005 and such a credit shall never exceed ELEVEN THOUSAND FIVE HUNDRED DOLLARS ($11,500.00) in total for the sum of any and all credits that may be available to the facilities identified in Exhibit AAA, and such crediting to be calculated and to be applied commencing September 15, 2006, for a period of up to no more than three (3) years from the date the Final Order approving and adopting this NRA (hereinafter the FONRA), to be applied at no more than FORTY DOLLARS ($40.00) per day for each day of tardiness after September 15, 2006. [For a hypothetical example, were HEALTHSOUTH EMERALD COAST to file its Prior Year Report for FY 2005 on November 1, 2006, and were the Agency to issue a properly constituted administrative complaint, or similar appropriate charging document, concerning a violation of §408.061(4)(a), Florida Statutes (2005), and Chapter 59E, Florida Administrative Code (2005), HEALTHSOUTH hypothetically would owe ninety-two (92) days of fines at the hypothetical rate of FORTY DOLLARS ($40.00) per day (this daily fine amount in this hypothetical is merely for illustrative purposes because the charged amount would be as specified in the administrative complaint and it is agreed the daily fine penalty may vary if in accordance with §408.061(4)(a), Florida Statutes (2005), and Chapter 59E, Florida Administrative Code (2005)). The total daily fine then calculated would have a credit applied for the forty-six (46) days since September 15, 2006, at the agreed upon and stipulated rate that cannot exceed FORTY DOLLARS ($40.00) per day. After applying the credit, the fines sought in the hypothetical charging document would be ONE THOUSAND EIGHT HUNDRED FORTY DOLLARS ($1,840.00); and similarly for each tardy facility and Prior Year Report for FY 2005 until the ELEVEN THOUSAND FIVE HUNDRED DOLLARS ($11,500.00) amount were exhausted or the three (3) year anniversary of the FONRA had been reached, whichever occurs sooner.] Other than this “crediting process” which is capped absolutely not to exceed ELEVEN THOUSAND FIVE HUNDRED DOLLARS ($11,500.00) in any case, whether the crediting process leads to the reduced relief sought within the charging document or a subtraction from the amount within a final order adjudged by a court of competent jurisdiction, but not both, so that the credit applied would never exceed the cap, HEALTHSOUTH waives any right, cause, claim, offset, credit, lien, pledge or interest of any kind in the moneys received by the Agency pursuant to this NRA other than this limited “crediting process” as described, This “credit” so described can neither be transferred nor assigned by the terms of the NRA. Moneys or fines received by the Agency pursuant to the NRA if not allowed under this limited “crediting process” remain as paid to the Agency. The PSA and CA are superseded by this NRA insofar as this NRA updates or alters a specific term of the PSA and Final Order of April 23, 2004, and CA and Final Order of August 30, 2005. Otherwise, the terms of the Previous Settlement Agreement and Final Order continue to operate fully. Should there occur a dispute as to interpretation of these three agreements, they should be read so as to give higher priority and reason to the terms of the NRA followed by the CA and then the PSA, respectively. Should terms of any of the agreements be determined by a court of competent jurisdiction to be unenforceable, then the remaining terms continue in full force and effect; however; in no uncertain terms do any of these agreements excuse in any manner the eventual filing of any FY reports by HEALTHSOUTH and those FACILTIES identified in the PSA, CA or NRA (and their Exhibits), the requirements for accuracy of any and all filed FY reports, or any state and/or federal enforcement provisions ensuring such 10. Ik. 12. accuracy; except as to only HEALTHSOUTH DOCTORS HOSPITAL (Facility Number: 10- 0020) for its FY 2002 and 2003 reports, for which it is not excused per se, but for which a portion of the first installment of the administrative fines described in paragraph 5 above for the failure to file these 2002 and 2003 reports constitutes full and adequate consideration for the penalty assessed. This NRA supersedes any prior oral agreements between the parties, and any prior written agreements between the parties except as strictly described and limited herein concerning the PSA and CA. All Prior Year Reports actually and already filed by HEALTHSOUTH with the AGENCY before April 10, 2006, pursuant to the PSA and CA, shall have no additional administrative fines imposed except for those administrative fines for which the first installment described in paragraph 5 above includes full consideration and satisfaction. The AGENCY shall timely provide a copy of the Final Order with the Newly Revised Agreement attached to counsel for HEALTHSOUTH at the address listed below. HEALTHSOUTH stipulates and agrees that it already has received a copy of the Final Orders of April 23, 2004, and August 23, 2005, and the associated CA and PSA identified above including all Exhibits appended to each. Each party to this proceeding shall bear its own attorneys’ fees and costs. This NRA becomes legally binding and effective as of the date that it is executed by both parties. Upon full execution of this NRA, the Agency shall enter a Final Order adopting and incorporating the terms of this NRA and that any above-style case, or case identified in Exhibit AAA, heretofore commenced be closed. Further, HEALTHSOUTH authorizes and consents to the AGENCY’s filing without further notice a Motion to Remand, Abate and/or any other similar motion or correspondence to implement this NRA, as necessary. The parties stipulate and agree that this NRA is a legal and binding document and is fully enforceable against all parties in any court of competent jurisdiction. However, any action to enforce the terms of this NRA shall be brought in the appropriate tribunal in Leon County, Florida. The signatories hereto represent and warrant that they are vested with the authority to 13. 14. 15, execute this NRA on behalf of their respective principals, and as duly designated Tepresentatives, to fully bind such principals. HEALTHSOUTH, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the AGENCY, 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 these matters 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 (NRA), the PSA and/or CA, by or on behalf of HEALTHSOUTH or related entities. The AGENCY, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge HEALTHSOUTH, 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 im any way related to these matters and HEALTHSOUTH?’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 (NRA), PSA and/or CA by or on behalf of the AGENCY or related entities, This Newly Revised Agreement will, in all respects, be interpreted, enforced and governed under the laws of the State of Florida. The language of all parts of this Newly Revised Agreement will, in all cases, be construed as a whole, according to its fair meaning, and not strictly for or against either party based upon initial authorship. By executing this Stipulation, HEALTHSOUTH does not admit the allegations in the matters raised herein, but acknowledges and accepts that the Agency asserts the validity of its allegations. Furthermore, it is stipulated by the parties to this NRA, that nothing in the agreements, the NRA, CA or PSA should be considered by third parties, person(s)/entity(s)/authority(s), whether or not Signatories to these agreements, whether private or public; to mean that the Agency by entering these aforementioned agreements deems that HEALTHSOUTH timely filed by the 16. 17. deadlines specified within §408.061(4)(a), Florida Statutes (2005), the Prior Year Reports for the fiscal years that are the subject of these agreements. Both parties agree that this Newly Revised Agreement does not waive the Agency’s ability to enforce a Final Order based upon this Agreement pursuant to §120.69, Florida Statutes, (2005). No agreement within the NRA, CA or PSA shall preclude the Agency from imposing a penalty against a facility of HEALTHSOUTH identified in any of these agreements for a future violation concerning §408.061(4)(a), Florida Statutes (2005), (i.e. a violation concerning a Prior Year Report for any FY after those of FY 2005) at the multiple “occurrence” level, including but not limited to the more than the “second occurrence” level under Rule 59E-2.025, Florida Administrative Code (2005), until September 15, 2009, based upon the “occurrences” that are the subject of the NRA, CA and PSA. In other words, were there no ensuing violation(s) of §408.061(4)(a), Florida Statutes (2005), before September 15, 2009, and if HEALTHSOUTH complies with the terms of the NRA, CA and PSA, any new future violation occurring subsequent to September 15, 2009, no matter when identified, could be charged at no more than the “first occurrence” level under Rule 59E-2.025, Florida Administrative Code (2005). However, if occurring before September 15, 2009, violation(s) may be charged at the “third occurrence” level plus fine(s) for the failure to file at all, if also applicable. Absolutely no notice is required to be sent by the Agency delineating the due dates for reports or the approach of any deadlines prior to the service of any Administrative Complaints concerning any cause of action arising from the subject of the PSA, CA or NRA. HEALTHSOUTH understands and explicitly accepts these terms. ~THE REMAINDER OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK. 18. This Newly Revised Agreement may not be amended except in writing. Any attempted assignment(s) of this Newly Revised Agreement, the CA or PSA shall be void. This Agreement is not effective and binding until executed by all parties hereto. 19, This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. Facsimiles of signatures shall be deemed to be the same as original signatures. Thomas F, Panza, Esquire Attorney and Representative for HealthSouth Florida Bar No. Panza, Maurer & Maynard, P.A. 3600 North Federal Highway, 3" Floor Fort Lauderdale, FL 33308 Christa Calamas, General Counsel Florida Bar No. 0142123 Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 Dated: , 2006 Dated: , 2006 Elizabeth Dudek, Eric Bredemeyer, Assistant General Counsel Deputy Secretary Florida Bar No. 318442 Agency for Health Care Administration 2727 Mahan Drive Tallahassee, Florida 32308 Dated: , 2006 Agency for Health Care Administration Regional Services Center 2295 Victoria Ave., Room 346C Fort Myers, FL 33901 Dated: , 2006 08 . 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Docket for Case No: 06-002445