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GOOD HOPE HEALTH SYSTEM, L.L.C., Petitioner, and THE TOWN OF
LILLINGTON, Petitioner-Intervenor, v. N.C. DEPARTMENT OF HEALTH
AND HUMAN SERVICES, DIVISION OF FACILITY SERVICES, CERTIFICATE OF
NEED SECTION, Respondent, and BETSY JOHNSON REGIONAL HOSPITAL,
INC., AND AMISUB OF NORTH CAROLINA, INC. D/B/A CENTRAL CAROLINA
HOSPITAL, Respondent-Intervenors.
NO. COA05-123
Filed: 03 January 2006
Hospitals_certificate of need_subsequent application_appeal of first moot
An appeal from the denial of a certificate of need for a hospital was dismissed as moot
where there was a subsequent application. Although petitioner contends that the two applications
are legally and factually different, both applications are for exactly the same hospital, regardless
of how it is characterized, and the agency review of the resubmitted original application during
the review process for the subsequent application provides an adequate remedy.
Judge TYSON dissenting.
Appeal by petitioner and petitioner-intervenor from a Final
Agency Decision issued 10 September 2004 by the North Carolina
Department of Health and Human Services. Heard in the Court of
Appeals 14 September 2005.
Smith Moore, LLP, by Maureen Demarest Murray, Susan
Frandenburg, and William Stewart, Jr., for petitioner-
appellant, Good Hope Health System, LLC.
Morgan, Reeves and Gilchrist, by C. Winston Gilchrist, for
petitioner-intervenor appellant, Town of Lillington.
Attorney General Roy Cooper, by Special Deputy Attorney
General Melissa L. Trippe, for respondent-appellee N.C.
Department of Health and Human Services.
Wyrick Robbins Yates & Ponton, LLP, by K. Edward Greene and
Kathleen A. Naggs, and Nelson Mullins Riley & Scarborough,
LLP, by Noah H. Huffstetler, III and Denise M. Gunter, for
respondent-intervenor appellee Betsy Johnson Regional
Hospital, Inc.
Bode Call & Stroupe, L.L.P., by Robert V. Bode and S. Todd
Hemphill, for respondent-intervenor appellee Amisub of North
Carolina, Inc. d/b/a Central Carolina Hospital.
STEELMAN, Judge.
Petitioner, Good Hope Hospital (Good Hope), is licensed as an
acute care hospital. It has been in operation since 1921 in Erwin,
North Carolina. Betsy Johnson Regional Hospital, Inc. (Betsy
Johnson), is located in Dunn, North Carolina. Both hospitals are
located in Harnett County. Due in part to its age, Good Hope's
existing hospital is nearing the end of its useful life and suffers
from multiple deficiencies.
2001 CON Application
In 2001, Good Hope applied for a Certificate of Need (CON)
with the Department of Health and Human Services, Division of
Facility Services, Certificate of Need Section (Agency) pursuant to
Chapter 131E of the North Carolina General Statutes to partially
replace its existing facility. The 2001 CON application proposed
to reduce the number of acute care beds from forty-three to thirty-
four, reduce the number of psychiatric beds from twenty-nine to
twelve, for a total of forty-six beds, and proposed three operating
rooms, at a cost of $16,159,950. The replacement hospital was to
be built in Erwin. The Agency conditionally approved Good Hope's
2001 application, but only for two operating rooms. Good Hope
filed a petition for contested case hearing in the Office of
Administrative Hearings (OAH). Good Hope and the Agency settled
the dispute in a written agreement. On 14 December 2001, the
Agency issued a CON to Good Hope for a forty-six bed hospital with
three operating rooms. Good Hope submitted a proposal to the North Carolina Medical
Care Commission (MCC) to obtain funding to develop the new facility
from the United States Department of Housing and Urban Development.
MCC denied the request for funding and Good Hope was unable to
procure other financing. Good Hope entered into discussions with
Betsy Johnson concerning a possible merger, however, no merger
resulted therefrom.
Good Hope later entered into a joint venture with Triad
Hospitals, Inc., which agreed to finance the project. The two
formed Good Hope Hospital System, L.L.C. (GHHS). GHHS filed a
motion for declaratory ruling requesting: (1) it be assigned Good
Hope's 2001 CON, (2) permission to change the site of the new
hospital to Lillington or Buies Creek, and (3) permission to
increase the size of the hospital from 61,788 square feet to 67,874
square feet. The proposed cost of the new project was $18,523,942.
The Agency denied the request for declaratory ruling. GHHS
appealed the denial to the Department of Health and Human Services,
Division of Facility Services (Department), but obtained a stay of
that appeal. Good Hope has not relinquished its 2001 CON.
2003 CON Application
On 14 April 2003, GHHS filed a new application (2003
application) for a CON to build a complete replacement hospital in
Lillington, rather than Erwin. The proposed facility was 112,945
square feet, with a total of forty-six acute care beds, ten
observation beds, and three operating rooms, at a cost of
$33,488,750. Prior to filing the 2003 application, GHHS met withMs. Hoffman, Chief of the Agency, who advised GHHS to file a new
CON application, not just an amended 2001 application because of
the difference in location, size, and scope of the proposed new
hospital. After review, the Agency denied GHHS's 2003 application.
GHHS appealed to OAH, challenging the Agency's decision. Betsy
Johnson and Central Carolina Hospital (CCH) moved to intervene as
respondents in support of the Agency's decision. The
administrative law judge (ALJ) granted the motion to intervene. On
9 July 2004, the ALJ recommended the Agency's decision be reversed.
Respondents appealed to the Department for final agency review. On
10 September 2004, the Department denied GHHS's application in a
final agency decision. GHHS appealed.
2005 CON Application
While this appeal was pending before this Court, GHHS filed a
new CON application (2005 application) on 15 August 2005 in
response to a need determination issued by the Governor in the 2005
State Medical Facilities Plan (SMFP). The Governor has final
authority to approve or amend the SMFP, which becomes the binding
criteria for review of CON applications. Frye Reg'l Med. Ctr.,
Inc. v. Hunt, 350 N.C. 39, 42-43, 510 S.E.2d 159, 162-63 (1999).
In its 2005 application, GHHS resubmitted its 2003 CON application
in its entirety, with some supplemental information.
On 26 August 2005, respondents filed a motion to dismiss
plaintiffs' appeal in this case on the grounds the appeal has been
rendered moot by GHHS's 2005 CON application.
Mootness
'When, pending an appeal to this Court, a development occurs,
by reason of which the questions originally in controversy between
the parties are no longer at issue, the appeal will be dismissed
[as moot] for the reason that this Court will not entertain or
proceed with a cause merely to determine abstract propositions of
law . . . .
State ex rel. Utilities Com. v. Southern Bell
Telephone Co., 289 N.C. 286, 288, 221 S.E.2d 322, 324 (1976)
(
Southern Bell I)
(citations omitted).
The mootness doctrine
applies in CON cases.
See In re Denial of Request by Humana
Hospital Corp., 78 N.C. App. 637, 640, 338 S.E.2d 139, 141 (1986).
GHHS's 2003 application was denied, in part, because under the
2003 SMFP there was no need for a hospital with three operating
rooms, as proposed by GHHS. The Department must follow the need
requirements as promulgated in the SMFP and cannot grant a CON to
a hospital which would allow more facilities than are needed.
See
N.C. Gen. Stat. § 131E-183(a)(1) (2005). The reason behind such a
requirement is to prevent the proliferation of unnecessary health
care facilities and equipment, which would result in costly
duplication and underuse of facilities. N.C. Gen. Stat. § 131E-175
(2005). In 2005, recognizing that Good Hope Hospital was nearing
the end of its useful life, the Governor amended the 2005 SMFP to
include a need for a new hospital in Harnett County with no more
than fifty acute care beds and three operating rooms. GHHS filed
a 2005 CON application for a new hospital containing forty-six
acute care beds and three operating rooms. Respondents contend the
case is now moot because the Agency is required to re-review GHHS's2003 CON application, which it resubmitted as its 2005 CON
application with supplemental information under the more favorable
2005 SMFP need requirements, thus providing GHHS with the relief
sought. We agree.
Our holding in
Humana, 78 N.C. App. 637, 640, 338 S.E.2d 139,
141 is determinative of this question.
In
Humana, the hospital
filed a 1981 CON application to build a new 160-bed hospital in
Wake County. The Agency denied their 1981 application on the
grounds that the then current SMFP did not contain a need for
additional acute care beds in the area. Humana requested a
reconsideration hearing, which the Agency denied. While seeking
judicial review of the denial of its 1981 CON application, Humana
filed another CON application in 1982. The SMFP in effect for 1982
contained a need for 174 beds in Wake County. The Agency denied
Humana's 1982 CON application.
This Court dismissed Humana's appeal on grounds of mootness.
Because Humana's 1982 CON application was virtually identical to
its 1981 application, with additional, supplemental information,
and the 1982 application was reviewed under the more favorable 1982
SMFP requirements, we held this afforded Humana an adequate remedy
to have its application reviewed under the more favorable 1982 SMFP
need requirements. 78 N.C. App. at 641-42, 338 S.E.2d at 142.
This Court found it significant that Humana's 1981 and 1982
applications were almost identical, with the only difference being
that the 1982 application contained supplemental information whichwas not considered as part of the 1981 application.
Id. at 641,
338 S.E.2d at 142.
Although this Court stated in
Humana that its decision was
based on the unique facts in that case, the facts in the instant
case are virtually identical to those in
Humana. Therefore, the
reasoning in
Humana is controlling. GHHS's 2003 application is
virtually identical to its 2005 application, with the addition of
supplemental information. The review of its 2005 application,
under the more favorable 2005 SMFP need requirements, affords GHHS
an adequate remedy of any alleged errors in the 2003 review
process, thereby making this appeal moot.
GHHS contends the 2003 CON application and the 2005
application are legally and factually different, in that its 2003
application was for a replacement hospital, which is judged against
different criteria than its 2005 application, which is for a new
hospital. It asserts that the Agency improperly applied the
criteria for a new hospital to its 2003 application for a
replacement hospital. Therefore, petitioner alleges the Agency's
review of its 2005 application would not afford it the remedy
sought, that is, to have the criteria for awarding a CON for a
replacement hospital applied to its 2003 CON application.
We do not find this argument persuasive. GHHS's 2001
application was for a replacement hospital, which was to be located
in Erwin, where Good Hope is currently located. The 2003
application, however, proposed to change the location of the
hospital to Lillington and doubled both the proposed square footageand cost of the hospital from the 2001 application. In GHHS's 2005
CON application, it proposed the same location, size, and scope for
its new hospital as contained in its 2003 application. While GHHS
did denote its 2003 application as being for a replacement
hospital, it describes the exact same hospital in the 2005 CON
application as a new hospital. Regardless of how GHHS
characterizes its hospital, both plans are for the exact same
hospital. Therefore, the Agency's review of the resubmitted 2003
CON application during its 2005 review process provides GHHS with
an adequate remedy. In addition, if GHHS were awarded a CON based
on its 2005 application, it would be required to yield any other
CON it may have.
The Governor explained in his Clarification
Memorandum to 2005 State Medical Facilities Plan, that:
[T]o avoid the proliferation of unnecessary
health service facilities as referenced in
N.C. Gen. Stat. § 131E-175(4), I have
concluded that any successful applicant for a
CON to develop the New Hospital shall be
required as a condition of its approval to
relinquish any other CON which it holds to
develop or replace acute care beds or
operating rooms in Harnett County and to
withdraw any other pending application or
litigation concerning the development or
replacement of such beds or rooms.
Furthermore, the same reasons
Humana was found to be
distinguishable from
State ex rel. Utilities Comn v. Southern Bell,
307 N.C. 541, 299 S.E.2d 763 (1983) (
Southern Bell II), apply here.
In
Southern Bell II, our Supreme Court held that the grant of a
second application for a rate increase did not moot the appeal of
the denial of the first application because the second rate
increase was not applied retroactively.
Id. at 547-48, 299 S.E.2dat 767. By not applying the second rate increase retroactively,
the petitioner would not receive the relief sought; therefore, the
issue of the first rate application was not moot.
Id. at 48, 299
S.E.2d at 767. This case is more akin to
Southern Bell I where the
two requests were the same.
See Humana, 78 N.C. App. at 644, 338
S.E.2d at 143-44 (finding
Southern Bell II did not overrule
Southern Bell I, but simply distinguished it).
Nor do the facts of this case fit within the exception to the
mootness doctrine, that the issues are capable of repetition yet
evading review.
Boney Publishers, Inc. v. Burlington City
Council, 151 N.C. App. 651, 654, 566 S.E.2d 701, 703 (2002)
(citations and internal quotation marks omitted).
To apply this
exception GHHS must show the challenged action is 'in its duration
too short to be fully litigated prior to its cessation or
expiration and there is a reasonable expectation that the same
issue would arise again.
Id. at 654, 566 S.E.2d at 703-04
(citations omitted). Regardless of the Agency's decision
concerning GHHS's 2005 application, its decision will not escape
review.
GHHS has been afforded an adequate remedy in having its 2003
application reconsidered under the more favorable 2005 SMFP need
requirements. Any allegations regarding errors in the 2003 review
process are now moot.
APPEAL DISMISSED.
Judge GEER concurs.
Judge TYSON dissents in a separate opinion.
TYSON, Judge dissenting.
I. Mootness
The majority's opinion cites In re Denial of Request by Humana
Hospital Corp. and applies the mootness doctrine to GHHS's appeal.
78 N.C. App. 637, 640, 338 S.E.2d 139, 141 (1986). In Humana, this
Court stated, [t]he doctrine of mootness is applicable to an
appellate proceeding where the original question in controversy is
no longer at issue. 78 N.C. App. at 640, 338 S.E.2d at 141.
A case is considered moot when a
determination is sought on a matter which,
when rendered, cannot have any practical
effect on the existing controversy. Roberts
v. Madison Cty. Realtors Ass'n, 344 N.C. 394,
398-99, 474 S.E.2d 783, 787 (1996). Courts
will not entertain such cases because it is
not the responsibility of courts to decide
abstract propositions of law. In re
Peoples, 296 N.C. 109, 147, 250 S.E.2d 890,
912 (1978), cert. denied, 442 U.S. 929, 61 L.
Ed. 2d 297 (1979). Conversely, when a court's
determination can have a practical effect on a
controversy, the court may not dismiss the
case as moot.
Lange v. Lange, 357 N.C. 645, 647, 588 S.E.2d 877, 879 (2003)
(emphasis supplied).
GHHS persuasively argues reasons to show this case is not
moot. GHHS contends, the agency has deprived Good Hope Hospital
of the substantive legal right to use and maintain its existing,
previously approved hospital by erroneously misapplying the CON act
to evaluate GHHS's 2003 proposal as for a new hospital and new
services rather than as for replacement of an existing hospital. The 2003 application is to be reviewed and evaluated under
Policy AC-5 in the 2003 SMFP and criterion (3a) concerning
reduction and relocation of existing health services. N.C. Gen.
Stat. § 131E-183(a)(3a) (2003). Proposals for new services are
judged against criteria 1, 3, and 6. N.C. Gen. Stat. §§ 131E-
183(a)(1), (3), and (6). GHHS's 2005 CON is an application for
new services and does not moot the 2003 CON for relocation of
existing services. I respectfully dissent.
II. Standard of Review
N.C. Gen. Stat. § 150B-23(a) (2003) provides:
A contested case shall be commenced by filing
a petition with the Office of Administrative
Hearings and, except as provided in Article 3A
of this Chapter, shall be conducted by that
Office . . . A petition shall be signed by a
party or a representative of the party and, if
filed by a party other than an agency, shall
state facts tending to establish that the
agency named as the respondent has deprived
the petitioner of property, has ordered the
petitioner to pay a fine or civil penalty, or
has otherwise substantially prejudiced the
petitioner's rights and that the agency:
(1) Exceeded its authority or
jurisdiction;
(2) Acted erroneously;
(3) Failed to use proper procedure;
(4) Acted arbitrarily or capriciously;
or
(5) Failed to act as required by law or
rule.
The parties in a contested case shall be given
an opportunity for a hearing without undue
delay. Any person aggrieved may commence a
contested case hereunder.
In Humana, cited by the majority's opinion, the hospital
submitted two applications as a new provider for a new facility and
new beds. 78 N.C. App. at 640, 338 S.E.2d at 141. Humana's
request for a reconsideration hearing regarding the denial of its
1981 application was also denied. Id. This Court held that
because Humana's 1982 application was reviewed, and the 1981 and
1982 applications were virtually identical, the 1982 review
process afforded Humana an adequate remedy to have its application
reviewed under a plan projecting a bed need, regardless of any
alleged error in the 1981 review process. Therefore, the
assignments of error as to the review process of Humana's 1981
application are moot. Id. at 641, 338 S.E.2d at 142. This Court
in Humana also limited the applicability of its holding and stated,
[t]his opinion should not be construed as holding that the
opportunity to reapply for a certificate of need automatically
moots all procedural claims in all cases. Id. at 646, 338 S.E.2d
at 145.
Here, GHHS's 2005 application did not moot the claims involved
in the 2003 application. The original issue on appeal regarding
GHHS's 2003 application remains unanswered. The legal issue of how
the CON Act can constitutionally and statutorily be applied to
replacement projects remains unanswered. GHHS's 2003 CON and the
2005 CON applications are factually and legally different.
Unlike Humana, GHHS requested a reduction in beds and
relocation of the existing facility in its 2003 application, not a
CON for a new facility. The 2005 application sought a newfacility. This application resulted from and was based upon the
Governor's amendment to the 2005 SMFP, which determined that a New
Hospital is needed in central Harnett County. The Governor
specifically stated, I have concluded that the Certificate of Need
(CON) application process to build the New Hospital should be
open to any applicant and nothing herein is to be construed as
favoritism toward, or bias against, any potential applicant.
Substantially different review criteria applies if an applicant
seeks to replace existing health services rather than apply for a
CON for new health services. Compare N.C. Gen. Stat. § 131E-
183(a)(3a) with § 131E-183(a)(1), (3), and (6). The 2005 CON
request for a New Hospital is a new and different application that
solely arose due to the Governor's amendment to the 2005 SMFP and
is subject to review under different statutory regulations. Id.
The requirements for a relocation or reduction in services are
provided in N.C. Gen. Stat. § 131E-183(a)(3a), which provides:
In the case of a reduction or elimination of a
service, including the relocation of a
facility or a service, the applicant shall
demonstrate that the needs of the population
presently served will be met adequately by the
proposed relocation or by alternative
arrangements, and the effect of the reduction,
elimination or relocation of the service on
the ability of low income persons, racial and
ethnic minorities, women, handicapped persons,
and other underserved groups and the elderly
to obtain needed health care.
The Agency found that GHHS met the requirements of N.C. Gen.
Stat. § 131E-183(a)(3a). GHHS's 2003 application did not request
new beds, as did the 2005 application. In its final decision, the
Agency concluded that GHHS's 2003 application failed to satisfy therequirements for new services; criteria that is wholly inapplicable
to the 2003 application.
The 2005 application must satisfy the standards under N.C.
Gen. Stat. § 131E-183(a)(1), (3), and (6). Under these Sections of
the statute, GHHS must explain why new services are needed and
demonstrate that the new projects will not result in an
unnecessary duplication of existing health services.
The Agency denied GHHS's 2003 application. The Agency found
that GHHS failed to meet the statutory requirements of N.C. Gen.
Stat. § 131E-183(a)(1), (3), (4), (5), (6), (12), (18a) and 131E-
183(b). GHHS argues the Agency incorrectly applied N.C. Gen. Stat.
§ 131E-183(a)(1), (3), and (6) standards to the 2003 application.
I agree. In 2003, GHHS applied for a modification to the existing
facility only. The Agency erred when it reviewed and evaluated the
2003 application under the standard set forth for new facilities in
N.C. Gen. Stat. § 131E-183(a). GHHS is entitled to a decision on
the merits of this issue. The majority's opinion fails to
correctly apply the mootness doctrine. Since I find the appeal is
not moot, I address the merits of the appeal.
III. Issues
GHHS argues the Agency: (1) exceeded its authority by
ignoring its own statutes, plan, prior decisions, and settlement
agreement with Good Hope; (2) exceeded its authority by demanding
space information not required under N.C. Gen. Stat. § 131E-182(b)
and ignoring space information required by the application; (3)
violated N.C. Gen. Stat. § 131E-185 by failing to considerinformation from the public hearing concerning how GHHS's
application conformed to the applicable law; and (4)
unconstitutionally applied the CON criteria to deny GHHS's
application and deprive the hospital of its right to use its
existing facility.
IV. Standard of Review
N.C. Gen. Stat. § 131E-188(b) (2003) provides:
Any affected person who was a party in a
contested case hearing shall be entitled to
judicial review of all or any portion of any
final decision of the Department in the
following manner. The appeal shall be to the
Court of Appeals as provided in G.S. 7A-29(a).
On judicial review of an administrative agency's final
decision, the substantive nature of each assignment of error
dictates the standard of review. North Carolina Dep't of Env't
and Natural Res. v. Carroll, 358 N.C. 649, 658, 599 S.E.2d 888, 894
(2004) (citation omitted). If the party asserts the agency's
decision was affected by a legal error, de novo review is required;
if the party seeking review contends the agency decision was not
supported by the evidence, or was arbitrary or capricious, the
whole record test is applied. Christenbury Surgery Ctr. v. N.C.
Dep't of Health and Human Servs., 138 N.C. App. 309, 312, 531
S.E.2d 219, 221 (2000). [T]his Court reviews the agency's
findings and conclusions de novo when considering alleged errors of
law. Cape Fear Mem. Hosp. v. N.C. Dept. of Human Resources, 121
N.C. App. 492, 493, 466 S.E.2d 299, 300 (1996) (citing Walker v.
N.C. Dept. of Human Resources, 100 N.C. App. 498, 502, 397 S.E.2d350, 354 (1990), disc. review denied, 328 N.C. 98, 402 S.E.2d 430
(1991)).
V. Agency Authority
GHHS argues the Agency exceeded its authority by ignoring its
own statutes, plan, prior decisions, and settlement agreement with
Good Hope. I agree.
Good Hope applied for a CON in 2001. The application proposed
to: (1) replace part of its existing hospital with a new facility
on Highway 421 near Erwin; (2) utilize buildings on the old campus
for outpatient physical therapy, business offices, plant
operations, information services, and other support functions; (3)
reduce the number of beds from seventy-two to forty-six; (4)
develop three operating rooms; (5) encompass 61,788 square feet;
and (6) spend a capital expenditure of $16,159,950.00.
The Agency approved the application, but conditioned its
approval on the development of two operating rooms. Good Hope and
the Agency entered into a settlement agreement, and the Agency
agreed that Good Hope could develop three operating rooms. A CON
was issued to Good Hope on 14 December 2001.
Good Hope secured financing through a joint venture with Triad
Hospitals, Inc. known as Good Hope Health Systems, L.L.C., and
referred to in the majority's opinion as GHHS. In 2003, GHHS
filed an application to develop a replacement facility in central
Harnett County. The 2003 application proposed the same number of
beds and operating rooms as was provided in the 2001 application
but increased the size of the facility to 112,945 square feet. The2003 application proposed more meeting space, more private rooms,
and to relocate all facilities rather than utilize any portion of
the existing facility. During the review process, GHHS sent a
letter to the Agency stating it was entitled to an exemption from
CON review under N.C. Gen. Stat. § 131E-184(a). The Agency denied
the application.
N.C. Gen. Stat. § 131E-176(16)(e) (2003) provides:
New institutional health services means any
of the following:
. . . .
(e) A change in a project that was subject to
certificate of need review and for which a
certificate of need was issued, if the change
is proposed during the development of the
project or within one year after the project
was completed. For purposes of this
subdivision, a change in a project is a change
of more than fifteen percent (15%) of the
approved capital expenditure amount or the
addition of a health service that is to be
located in the facility, or portion thereof,
that was constructed or developed in the
project.
GHHS's 2003 application proposed additional capital
expenditures exceeding 15% over the 2001 project for which a CON
was issued. The 2003 application was proposed during the
development of the project granted in the 2001 application and
stated that it was proposing changes to the approved 2001 project.
The Agency incorrectly reviewed the 2003 application as a new
project, rather than a modification to an existing project. The
Agency failed to set forth any finding to support its determination
that the 2003 application should be reviewed and evaluated as a new
project instead of an existing project. GHHS argues N.C. Gen. Stat. § 131E-183(a)(3a) controls the
2003 application. The application proposes to reduce and relocate
facilities rather than establish a new hospital. The Agency found
that GHHS's proposed replacement facility would appropriately meet
the needs of all patient groups, but GHHS failed to adequately
demonstrate that the population projected to be served needs the
scope of services proposed by the application, a requirement of
N.C. Gen. Stat. § 131E-183(a)(3). The Agency also found GHHS's
application complied with N.C. Gen. Stat. § 131E-183(a)(3a). The
Agency also analyzed the application under N.C. Gen. Stat. § 131E-
183(a)(6) and found the requirement of demonstrating that the
proposed project will not result in unnecessary duplication of
existing or approved health service capabilities or facilities was
not satisfied. The Agency erred when it applied criterion for new
hospitals in N.C. Gen. Stat. § 131E-183(a) to GHHS's 2003
modification. In light of this error, it is unnecessary to
consider the remaining assignments of error.
VI. Conclusion
The majority's opinion improperly applies the mootness
doctrine to dismiss GHHS's appeal. GHHS is entitled to a decision
on the merits of its appeal.
The Agency erred when it reviewed GHHS's 2003 application
based on criterion for a new facility. In light of this error, it
is unnecessary to consider the remaining assignments of error. I
vote to reverse and remand this case for evaluation of GHHS's 2003CON application under the statutes and regulations applicable to
relocation of an existing facility. I respectfully dissent.
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