BIO-MEDICAL APPLICATIONS OF OCALA, INC., APPELLANT,
v.
OFFICE OF COMMUNITY MEDICAL FACILITIES, DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, APPELLEE

Fla. 1st DCA | 1979-08-07
No. LL-472
MILLS, C. J., and SHIVERS, J., concur.
374 So. 2d 88 Florida District Court of Appeal, First District (1979) Caution
Cited by 22 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Bio-Medical appealed a Department order denying its request for a hearing on a competitor's certificate of need application for a dialysis facility. The Florida District Court of Appeal reversed, holding that Bio-Medical had standing as a competitor applicant with substantial interests affected by the decision and was entitled to a timely hearing under the Administrative Procedure Act.


Holding

Bio-Medical had standing as a 'party' to proceedings on Shands' application because the applications were mutually exclusive and each competitor's substantial interests would be affected by agency action on the other's application. Bio-Medical's request for a hearing was timely since the Department had no rules establishing an earlier clear point of entry for competitor applicants to intervene in free-form proceedings.


Headnotes

[1] An applicant for a certificate of need has standing to contest a competitor's mutually exclusive application when their substantial interests are affected by the agency's…

[2] When agency rules do not provide an earlier clear point of entry for a competitor applicant to intervene in proceedings on a mutually exclusive application, a hearing req…

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Key Quotes

“when simultaneous applications are mutually exclusive and are so regarded by the Department, as here evidenced by the order denying Bio-Medical's application in favor of Shands' 'less costly and more appropriate alternative,' each competitor is potentially a party to the proceedings on the other's application.”

Establishes the basis for standing: mutual exclusivity of applications and Department's treatment of them as such

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Facts & Procedural History

Bio-Medical Applications and Shands Teaching Hospital both applied for certificates of need to operate a ten-station chronic renal dialysis facility i…

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Opinion of the Court
ROBERT P. SMITH, Jr., Judge.

ROBERT P. SMITH, Jr., Judge.

Bio-Medical appeals from a Department order denying Bio-Medical a Section 120.57 hearing on the application of competitor Shands Teaching Hospital for a'certificate of need authorizing a ten-station chronic renal dialysis facility in Ocala. The Department simultaneously granted Shands’ application and denied Bio-Medical’s finding that Shands’ was a “less costly and more appropriate alternative.” Section 381.494(5)(e) 1, (6), Florida Statutes (1977). The Department has offered Bio-Medical a Section 120.57 hearing on Bio-Medical’s own application but considers that Bio-Medical lacks standing, or did not timely assert standing, to contest the Shands application.

We find that these applications are mutually exclusive, each proposing to satisfy the same limited need; that Bio-Medical has standing as a “party” to proceedings on Shands’ application; and that, absent Department rules giving Bio-Medical an earlier clear point of entry as intervenor, Bio-Medical timely requested a hearing after the Department acted on Shands’ application in free-form proceedings.

Bio-Medical asserts that, as an applicant for a certificate of need, it is entitled by Section 381.494(6)(e) to an APA hearing on Shands’ application. That statute provides: Any applicant or health systems agency aggrieved by the issuance or denial of a certificate of need shall have the right, within not more than 30 days from the day notice of the issuance or denial of such certificate is received from the department, to seek relief according to the provisions of the Administrative Procedure Act. .

We need not go so far as to hold that “any” simultaneous applicant for a certificate of need is entitled to an APA hearing on receipt of notice that the Department has granted another’s application. But when simultaneous applications are mutually exclusive and are so regarded by the Department, as here evidenced by the order denying Bio-Medical’s application in favor of Shands’ “less costly and more appropriate alternative,” each competitor is potentially a party to the proceedings on the other’s application. Each is one “whose substantial interests will be affected by proposed agency action” on the other’s application.

Section 120.52(10)(b), Florida Statutes (1978 Supp.); Bio-Medical Applications of Clear-water, Inc. v. Department of Health and Rehabilitative Services, 370 So. 2d 19 (Fla. 2d DCA 1979).

Because Bio-Medical had standing as a potential party to the Shands proceedings, Bio-Medical was entitled to request a hearing in those proceedings by which Shands’ substantial interests were to be determined.

Section 120.57, Florida Statutes (1978 Supp.); Gadsden State Bank v. Lewis, 348 So. 2d 343, 346 (Fla. 1st DCA 1977).

By rules the Department has power to regulate the time and manner in which competitor applicants must appear and request a hearing on each other’s applications; but the Department has no such rule. Because Department rules did not provide Bio-Medical an earlier “clear point of entry, within a specified time after some recognizable event in investigatory or other free-form proceedings, to formal or informal proceedings under Section 120.57,” the Department was obliged to grant Bio-Medical’s application for request for a hearing filed soon after the Department issued Shands’ certificate. Capeletti Brothers, Inc. v. Department of Transportation, 362 So. 2d 346 (Fla. 1st DCA 1978), cert. den., 368 So. 2d 1374; Graham Contracting, Inc. v. Department of General Services, 363 So. 2d 810 (Fla. 1st DCA 1978).

REVERSED.

MILLS, C. J., and SHIVERS, J., concur.


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Citator

Cited By

  • …proceedings, to formal or informal proceedings under Section 120.57” so as to assure the right of comparative review of applications competing for the same fixed pool. Biomedical Applications of Ocala, Inc. v. Office of Community Medical Facilities, 374 So. 2d 88, 89 (Fla. 1st DCA 1979). Our review of the applicable federal and state statutes and HRS rules leads us to conclude that the challenged policy and practice of HRS does not comport with the above-cited principles and is not in compliance with the re…
  • …d pool of needed investments, so that their applications are mutually exclusive within the meaning of Ashbacker. In Bio-Medical Applications of Ocala, Inc. v. Office of Community Medical Facilities, Department of Health and Rehabilitative Services, 374 So. 2d 88 (Fla. 1st DCA 1979), although not citing Ashbacker, the court held that competing applicants for certificates of need for a renal dialysis facility were mutually exclusive, that each applicant was one “whose substantial interest [would] be affected…
  • …ying the Ashbacker doctrine to CON cases. Biomedical Applications of Clearwater, Inc. v. Dept. of Health & Rehabilitative Services, 370 So. 2d 19 (Fla.2d DCA 1979); Biomedical Applications of Ocala, Inc. v. Dept. of Health & Rehabilitative Services, 374 So. 2d 88 (Fla. 1st DCA 1979); and South Broward Hospital District v. Dept. of Health & Rehabilitative Services, 385 So. 2d 1094 (Fla. 4th DCA 1980). UMC recognizes that HRS has established “batching cycles” to facilitate the orderly review of applications, b…

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