FILED STATE OF FLORIDA AGENCY CLERK AGENCY FOR HEALTH CARE ADMINISTRATION 200) JUL 18 A & 549 CITRUS HMA, INC. d/b/a SEVEN x RIVERS REGIONAL MEDICAL CENTER, FRAES NO. 2007000313 Petitioner, DOAH Case No. 07-0594 i CON No. 9933 BRS ere Go? aoa vs. RENDITION NO.: AHCA-07- 04 @S-0L ey at ret Hit a bi We tow STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent, FINAL ORDER THE STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (hereinafter the “Agency”), having reviewed all matters of record including CON Application No. 9933; and having entered into a Settlement Agreement with CITRUS HMA, INC. d/b/a SEVEN RIVERS REGIONAL MEDICAL CENTER (hereinafter "Seven Rivers"), and with HEALTHSOUTH CORPORATION d/b/a HEALTHSOUTH REHABILITATION HOSPITAL OF SPRING HILL ("HealthSouth — Spring Hill"), which Agreement is attached hereto as Exhibit 1; and being otherwise well advised in the premises: It is ORDERED and ADJUDGED: 1, The attached Settlement Agreement is approved and adopted as part of this Final Order, and the parties thereto are directed to comply with the terms of the Settlement Agreement. 2. The Agency hereby approves the issuance of Certificate of Need No. 9933 to Seven Rivers with the following conditions appearing on the face of the Certificate of Need: A, Citrus HMA, Inc. d/b/a Seven Rivers Regional Medical Center will provide at least 2% of its total CMR Unit annual patient days to Medicaid/Medicaid HMO and at least 4% to charity/self-pay patients. . B. Citrus HMA, Inc. d/b/a Seven Rivers Regional Medical Center will not admit its first patient to the CMR Unit until after May 14, 2009. 3. The above-styled case is hereby closed. DONE and ORDERED this _!U_ day of SAY , 2007, in Tallahassee, Leon County, Florida. Am - Agwunobi, M.D., Secretary Agency for Health Care Administration 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: Karin M. Byrne, Esq. Assistant General Counsel (Interoffice Mail) Elizabeth Dudek Deputy Secretary (Interoffice Mail) Jan Mills (Interoffice Mail) Susan Smith, Esq. Attorney for Citrus HMA, Inc. d/b/a/ Seven Rivers Regional Medical Center 2873 Remington Green Circle Tallahassee, Florida 32308 Deborah S. Platz, Esq. Attorney for HealthSouth Corporation d/b/a HealthSouth Rehabilitation Hospital of Spring Hill 3600 North Federal Highway Fort Lauderdale, Florida 33308 David M. Maloney Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of this Final Order was served on the above-named persons and entities by U.S. Mail, or the method designated, on this Six of C Bie , 2007. Richard Shoop, Agency Clerk Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32308-5403 (850) 922-5873 STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS CITRUS HMA, INC. d/b/a SEVEN RIVERS REGIONAL MEDICAL CENTER, Petitioner, FRAES NO. 2007000313 vs. : DOAH CASE NO. 07-0594 CON 9933 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. / SETTLEMENT AGREEMENT Respondent, the STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (hereinafter the "Agency"), through its undersigned representatives, and Petitioner, CITRUS HMA, INC. d/b/a SEVEN RIVERS REGIONAL MEDICAL CENTER (hereinafter "Seven Rivers") and HEALTHSOUTH CORPORATION d/b/a HEALTHSOUTH REHABILITATION HOSPITAL OF SPRING HILL (“HealthSouth - Spring Hill”) (hereinafter collectively the "parties" to this agreement and each individually a "party" hereto), pursuant to Section 120.57(4), Florida Statutes, hereby enter into this Settlement Agreement (the "Agreement") stating as follows: WHEREAS, Seven Rivers is an applicant for a certificate of need (“CON”) to establish a 16-bed comprehensive medical rehabilitation unit ("CMR Unit") in Citrus County, District 3, having filed CON Application No. 9933 on or before September 13, 2006; and WHEREAS, the Agency has jurisdiction by virtue of being the regulatory authority responsible for the review and approval of certificate of need applications, pursuant to Sections 408.035, 120.569 and 120.57, Florida Statutes; and WHEREAS, the Agency published a notice in the December 29, 2006, Florida Administrative Weekly, giving notice of its intent to deny CON Application No. 9933; and WHEREAS, Seven Rivers has challenged the preliminary denial of its CON application by timely filing its Petition for Administrative Hearing in this case; and WHEREAS, HealthSouth — Spring Hill has filed its Petition to Intervene in this case as an existing provider of CMR health care services; and WHEREAS, the parties have agreed that a fair, efficient, and cost-effective agreement to resolve this dispute would avoid the expenditure of substantial sums to litigate the dispute; and WHEREAS, the parties have negotiated and agreed that the best interests of the parties will be served by a settlement of this proceeding; NOW, THEREFORE, in consideration of the mutual promises and recitals herein, the parties, intending to be legally bound, agree as follows: 1. All of the above recitals are true and correct and are expressly incorporated herein as binding upon the parties, as well as upon all entities identified in Paragraphs 10 and 11 hereof. 2. All section numbers set forth herein refer to the Florida Statutes in effect at the time of execution of this Agreement, and all rule numbers that may be set forth herein refer to the Florida Administrative Code in effect at the time of execution of this Agreement. 3. Upon full execution of this Agreement and the Final Order adopting and incorporating this Agreement, the Agency agrees to issue a Final Order approving CON No. 9933 with the following conditions appearing on the face of the Certificate of Need: A. Citrus HMA, Inc. d/b/a Seven Rivers Regional Medical Center, will provide at least 2% of its total CMR Unit annual patient days to Medicaid/Medicaid HMO and at least 4% to charity/self-pay patients. B. Citrus HMA, Ine. d/b/a Seven Rivers Regional Medical Center will not admit its first patient to the CMR Unit until after May 14, 2009. 4. 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. 5. Upon full execution of this Agreement and the Final Order adopting and incorporating this Agreement, Seven Rivers: A. Agrees that this document shall operate as the withdrawal of its petition for a formal administrative proceeding, agrees to the relinquishment of jurisdiction in this action from the Division of Administrative Hearings ("DOAH") back to the Agency for the entry of a Final Order consistent with the terms of this agreement, and agrees to the waiver of any right to have jurisdiction returned again from the Agency to the DOAH; B. Agrees to waive its rights under Section 120.57(1) or under any applicable statute or rule to any proceeding, including appeals under Section 120.68 and any other appeals; Cc. Agrees to waive compliance with the form of the Final Order (i.e., Findings of Fact and Conclusions of Law) to which it may be entitled; and D. Agrees to waive any right to declaratory and all other writs of relief in any court or quasi-court of competent jurisdiction (e.g., the Division of Administrative Hearings); provided, however, that nothing herein shall be deemed a waiver by any party of its right to judicial enforcement of this Agreement. 6. Upon full execution of this Agreement HealthSouth — Spring Hill: A. Agrees that this document shall operate as the withdrawal of all of its petitions to intervene, wherever filed, agrees to relinquishment of jurisdiction in this action from the Division of Administrative Hearings (“DOAH”) back to the Agency for the entry of a Final Order consistent with the terms of this agreement, and agrees to the waiver of any right to have jurisdiction retumed again from the Agency to the DOAH; B. Agrees to waive any rights it may have under Section 120.57(1) or under any applicable statute or rule to any proceeding, including appeals under Section 120.68 and any other appeals; Cc. Agrees to waive compliance with the form of the Final Order (i.e., Findings of Fact and Conclusions of Law) to which it may be entitled; and D. Agrees to waive any right to declaratory and all other writs of relief in any court or quasi-court of competent jurisdiction (e.g., the Division of Administrative Hearings); provided, however, that nothing herein shall be deemed a waiver by any party of its right to judicial enforcement of this Agreement. 7. The comprehensive medical rehabilitation beds approved by Certificate of Need No. 9933 shall not be transferred, assigned, or otherwise conveyed. 8. 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. 9. Each party shall bear its own costs and attorney's fees. 10. Seven Rivers, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the State of Florida, Agency for Health Care Administration, and its agents, representatives, and attorneys of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, arising out of or in any way related to this matter and the Agency's actions, including but not limited to, any claims that were or may be asserted in any federal or state court or administrative forum, including any claims arising out of this Agreement, by or on behalf of Seven Rivers or related facilities. 11. HealthSouth - Spring Hill, for itself and for its related or resulting organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the State of Florida, Agency for Health Care Administration, and its agents, representatives, and attorneys of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, arising out of or in any way related to this matter and the Agency's actions, including but not limited to, any claims that were or may be asserted in any federal or state court or administrative forum, including any claims arising out of this Agreement, by or on behalf of HealthSouth — Spring Hill or related facilities. 12. This Agreement is binding upon all parties herein and those identified in Paragraphs 10 and 11 above. 13. This Agreement constitutes the entire agreement between the parties and supersedes any prior discussions, agreements, or understandings between the parties. No modification or waiver is valid unless written and properly executed. 14. Any attempted assignment of this Agreement shall be void. 15. | This Agreement shall become effective on the date upon which it is fully executed by all the parties. 16. Each individual signing below hereby expressly represents that (s)he is duly authorized to enter into this Agreement on behalf of the entity on whose behalf (s)he is signing below. AGENCY FOR HEALTH CARE CITRUS HMA, INC. d/b/a ADMINISTRATION SEVEN RIVERS REGIONAL MEDICAE-CENTER... By:: , — Karig Byrne, Assistant General Counsel Date: Ou x “do 6d] 2727 Mahan Drive, Building 3, MSC #3 Tallahassee, Florida 32308 By: Godley K lineone Timothy Parry, Esq. Hospital Legal Counsel Date: 6-63 -OF HEALTHSOUTH CORPORATION d/b/a HEALTHSOUTH REHABILI- TATION HOSPITAL OF SPRING HILL By: Deborah Platz, Esq. Panza, Maurer & Maynard, P.A. Legal Counsel Date: By: Craig H. Smith, General Counsel Date: By: Karin Byme, Assistant General Counsel Date: 2727 Mahan Drive, Building 3, MSC #3 Tallahassee, Florida 32308 By: Timothy Parry, Esq. Hospital Legal Counsel Date: HEALTHSOUTH CORPORATION d/b/a HEALTHSOUTH REHABILI- TATION HOSPITAL OF SPRING HILL By: dibirah 2 Lad a Deborah Platz, Esq. Panza, Maurer & Maynard, P.A. Legal Counsel Date: 06 //3 [o7 STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS CITRUS HMA, INC. d/b/a SEVEN RIVERS REGIONAL MEDICAL CENTER, Petitioner, FRAES NO. 2007000313 vs. DOAH CASE NO. 07-0594 CON 9933 STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, Respondent. / SETTLEMENT AGREEMENT Respondent, the STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (hereinafter the "Agency"), through its undersigned representatives, and Petitioner, CITRUS HMA, INC. d/b/a SEVEN RIVERS REGIONAL MEDICAL CENTER (hereinafter "Seven Rivers") and HEALTHSOUTH CORPORATION d/b/a HEALTHSOUTH REHABILITATION HOSPITAL OF SPRING HILL (“HealthSouth - Spring Hill”) (hereinafter collectively the "parties" to this agreement and each individually a "party" hereto), pursuant to Section 120.57(4), Florida Statutes, hereby enter into this Settlement Agreement (the "Agreement") stating as follows: WHEREAS, Seven Rivers is an applicant for a certificate of need (“CON”) to establish a 16-bed comprehensive medical rehabilitation unit ("CMR Unit") in Citrus County, District 3, having filed CON Application No. 9933 on or before September 13, 2006; and WHEREAS, the Agency has jurisdiction by virtue of being the regulatory authority responsible for the review and approval of certificate of need applications, pursuant to Sections 408.035, 120.569 and 120.57, Florida Statutes; and WHEREAS, the Agency published a notice in the December 29, 2006, Florida Administrative Weekly, giving notice of its intent to deny CON Application No. 9933; and WHEREAS, Seven Rivers has challenged the preliminary denial of its CON application by timely filing its Petition for Administrative Hearing in this case, and WHEREAS, HealthSouth — Spring Hill has filed its Petition to Intervene in this case as an existing provider of CMR health care services; and WHEREAS, the parties have agreed that a fair, efficient, and cost-effective agreement to resolve this dispute would avoid the expenditure of substantial sums to litigate the dispute; and WHEREAS, the parties have negotiated and agreed that the best interests of the parties will be served by a settlement of this proceeding; NOW, THEREFORE, in consideration of the mutual promises and recitals herein, the parties, intending to be legally bound, agree as follows: 1. All of the above recitals are true and correct and are expressly incorporated herein as binding upon the parties, as well as upon all entities identified in Paragraphs 10 and 11 hereof. 2. All section numbers set forth herein refer to the Florida Statutes in effect at the time of execution of this Agreement, and all rule numbers that may be set forth herein refer to the Florida Administrative Code in effect at the time of execution of this Agreement. 3. Upon full execution of this Agreement and the Final Order adopting and incorporating this Agreement, the Agency agrees to issue a Final Order approving CON No. 9933 with the following conditions appearing on the face of the Certificate of Need: A. Citrus HMA, Inc. d/b/a Seven Rivers Regional Medical Center, will provide at least 2% of its total CMR Unit annual patient days to Medicaid/Medicaid HMO and at least 4% to charity/self-pay patients. B. Citrus HMA, Inc. d/b/a Seven Rivers Regional Medical Center will not admit its first patient to the CMR Unit until after May 14, 2009. 4. 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. 5. Upon full execution of this Agreement and the Final Order adopting and incorporating this Agreement, Seven Rivers: A. Agrees that this document shall operate as the withdrawal of its petition for a formal administrative proceeding, agrees to the relinquishment of jurisdiction in this action from the Division of Administrative Hearings ("DOAH") back to the Agency for the entry of a Final Order consistent with the terms of this agreement, and agrees to the waiver of any right to have jurisdiction returned again from the Agency to the DOAH; B. Agrees to waive its rights under Section 120.57(1) or under any applicable statute or rule to any proceeding, including appeals under Section 120.68 and any other appeals; Cc. Agrees to waive compliance with the form of the Final Order (i.e., Findings of Fact and Conclusions of Law) to which it may be entitled; and D. Agrees to waive any right to declaratory and all other writs of relief in any court or quasi-court of competent jurisdiction (e.g., the Division of Administrative Hearings); provided, however, that nothing herein shall be deemed a waiver by any party of its right to judicial enforcement of this Agreement. 6. Upon full execution of this Agreement HealthSouth — Spring Hill: A. Agrees that this document shall operate as the withdrawal of all of its petitions to intervene, wherever filed, agrees to relinquishment of jurisdiction in this action from the Division of Administrative Hearings (“DOAH”) back to the Agency for the entry of a Final Order consistent with the terms of this agreement, and agrees to the waiver of any right to have jurisdiction returned again from the Agency to the DOAH; B. Agrees to waive any rights it may have under Section 120.57(1) or under any applicable statute or rule to any proceeding, including appeals under Section 120.68 and any other appeals; Cc. Agrees to waive compliance with the form of the Final Order (i.e., Findings of Fact and Conclusions of Law) to which it may be entitled; and D. Agrees to waive any right to declaratory and all other writs of relief in any court or quasi-court of competent jurisdiction (e.g., the Division of Administrative Hearings); provided, however, that nothing herein shall be deemed a waiver by any party of its right to judicial enforcement of this Agreement. 7. The comprehensive medical rehabilitation beds approved by Certificate of Need No. 9933 shall not be transferred, assigned, or otherwise conveyed. 8. 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. 9. Each party shall bear its own costs and attorney's fees. 10. Seven Rivers, 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 attomeys 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 Seven Rivers or related facilities. 11. HealthSouth - Spring Hill, for itself and for its related or resulting _ organizations, its successors or transferees, attorneys, heirs, and executors or administrators, does hereby discharge the State of Florida, Agency for Health Care Administration, and its agents, representatives, and attorneys of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, arising out of or in any way related to this matter and the Agency's actions, including but not limited to, any claims that were or may be asserted in any federal or state court or administrative forum, including any claims arising out of this Agreement, by or on behalf of HealthSouth — Spring Hill or related facilities. 12. This Agreement is binding upon all parties herein and those identified in Paragraphs 10 and 11 above. 13. This Agreement constitutes the entire agreement between the parties and supersedes any prior discussions, agreements, or understandings between the parties. No modification or waiver is valid unless written and properly executed. 14. Any attempted assignment of this Agreement shall be void. 15. This Agreement shall become effective on the date upon which it is fully executed by all the parties. 16. Each individual signing below hereby expressly represents that (s)he is duly authorized to enter into this Agreement on behalf of the entity on whose behalf (s)he is signing below. AGENCY FOR HEALTH CARE CITRUS HMA, INC. d/b/a ADMINISTRATION SEVEN RIVERS REGIONAL By: ¢ By: Craig H. Swhith, General Counsel Timothy Parry, Esq. = Hospital Legal Counsel Date: \ Judes 6 L007 r Date: 6-18-O? he ) \ = = HEALTHSOUTH CORPORATION in Byrne, Assistant Genéra? Counsel d/b/a HEALTHSOUTH REHABILI- TATION HOSPITAL OF SPRING Date: Que 2a,a oO 7] _ HILL 2727 Mahan Drive, Building 3, MSC #3 Tallahassee, Florida 32308 By: Deborah Platz, Esq. Panza, Maurer & Maynard, P.A. Legal Counsel Date:

Docket for Case No: 07-000594CON