ARBOR HEALTH CARE COMPANY, APPELLANT,
v.
STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION AND MANOR CARE OF BOYNTON BEACH, INC. D/B/A MANOR CARE-SARASOTA COUNTY, APPELLEES
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Arbor Health Care Company appealed the denial of its certificate of need (CON) application for failing to disclose certain projects. The court held that the agency's own rule narrowly defined "capital projects" as requiring final approval from the agency, and therefore denied-but-in-litigation CON projects need not be disclosed, reversing the agency's decision.
Projects for which CON applications have been denied and are in litigation are not "capital projects" subject to mandatory disclosure under the statute and rule, because the rule defines "capital project" as requiring "final approval," which is reached only when the agency issues a letter of intent to issue a CON—not when the agency has denied the application.
[1] A certificate of need application must disclose all "capital projects" applied for, pending, approved, or underway in any state at the time of application.
[2] For purposes of certificate of need applications, "final approval" of a capital project includes agency issuance of a letter of intent to issue a certificate of need.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“a project involving one or more expenditures which has received final approval via authorization to execute for which capitalization will be required under generally accepted accounting principles. For the purposes of this definition, final approval includes letters of intent to issue a certificate of need issued by the agency.”
The rule's definition of "capital project" that the court used to determine what projects must be disclosed.
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Join FLexlaw to unlock all legal intelligenceArbor and Manor Care submitted competing CON applications to construct a nursing home in Sarasota County. The agency initially approved Arbor's applic…
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ALLEN, Judge.
Arbor Health Care Company (Arbor) appeals from a summary denial by the appellee Agency for Health Care Administration (the agency) of Arbor’s application for a certificate of need (CON) due to Arbor’s failure to disclose certain projects determined by the agency to be “capital projects” and therefore subject to disclosure pursuant to section 408.037(2)(a), Florida Statutes, and Florida Administrative Code Rule 59C-1.002(9). Concluding that Arbor’s application met the disclosure requirements of the statute and rule, we reverse.
Arbor and appellee Manor Care of Boyn-ton Beach, Inc. (Manor) submitted competing CON applications to construct a nursing home in Sarasota County. The agency initially approved Arbor’s application and denied Manor’s application. Manor petitioned for a section 120.57(1), Florida Statutes, administrative hearing to challenge the agency’s decision, and subsequently filed a motion for a summary recommended order, contending that Arbor had failed to comply with the minimum application content requirements of section 408.037(2)(a). Manor alleged that Arbor had failed to disclose three projects for which CON applications had been denied. Arbor was litigating the denial of the CON application on each of those projects. The agency agreed that Arbor’s omission of those projects violated the mandatory disclosure requirements of the statute.
The hearing officer recommended that Arbor’s application be denied for failure to comply with the disclosure requirements of the statute as interpreted in accordance with rule 59C-1.002(9). The agency subsequently issued a final order adopting the hearing officer’s findings and conclusions and summarily denying Arbor’s CON application.
Section 408.037(2)(a) requires that a CON application disclose all “capital projects” which are “applied for, pending, approved, or underway in any state at the time of application.” Rule 590-1.002(9), which was promulgated by the agency, defines “capital project” as a project involving one or more expenditures which has received final approval via authorization to execute for which capitalization will be required under generally accepted accounting principles. For the purposes of this definition, final approval includes letters of intent to issue a certificate of need issued by the agency.*
The agency maintains that under this rule any project that has received internal approval by the applicant is a capital project and must be disclosed, including denied-but-in-litigation projects such as the three projects not listed by Arbor. We disagree. The second sentence of the rule explicates circumstances under which a project requiring issuance of a CON will be considered to have reached “final approval.” The indication therein that such final approval is reached when the agency issues its letter of intent to issue a CON unmistakably conveys the message that final approval is not reached where the agency has not acted on a CON application, and certainly not where, as here, the agency has denied the application. Therefore, Arbor’s denied-but-in-litigation projects were not “capital projects” subject to disclosure in its CON application.
The agency argues that its interpretation of the statutes and rules it is charged with administering is ordinarily accorded deference. Indeed, were it not for the agency’s own rule narrowly defining “capital project,” we would accept its interpretation of section 408.037(2)(a). However, the agency chose to interpret the statute via rule 590-1.002(9) so as to clearly exclude denied-but-in-litigation projects. An agency’s interpretation of its own rule is entitled to great weight, but judicial deference to agency interpretation does not extend to a construction which contradicts the unambiguous language of a rule. Woodley v. Department of Health & Rehabilitative Serv., 505 So. 2d 676 (Fla. 1st DCA 1987).
The order is set aside and this case is remanded for further agency action.
DAVIS, J., and SMITH, Senior Judge, concur. *
The agency subsequently amended this rule to specifically capture the denied-but-in-litigation projects. Rule 59C-1.002(9) now provides that a capital project includes "[a] project involving a capital expenditure for which a notice of intent to deny a certificate of need is in litigation, or could still be litigated within any remaining part of the 21-day period provided by s. 408.039(5)(a), F.S."
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Life Care Ctrs. OF Am., Inc. v. State, 656 So. 2d 1329 (Fla. 1st DCA 1995)…. We also note that under the rules in effect at the time of the application at issue, Life Care was not required to include the denied-but-in-litigation projects as “capital projects.” Arbor Health Care Co. v. Florida Agency for Health Care Admin., 654 So. 2d 1020 (Fla. 1st DCA, 1995). The record supports the hearing officer’s determination that Life Care met minimum CON application content requirements. The final order is set aside and this case is remanded for further agency action. BARFIELD and ALLEN, JJ…
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