Appeal by Respondent-Intervenor Carrolton Home Care, Inc.
d/b/a Community Home Care and Hospice from the Final Agency
Decision 22 August 2006 by Director Robert J. Fitzgerald in the
North Carolina Department of Health and Human Services. Heard in
the Court of Appeals 23 August 2007.
Smith Moore LLP by Maureen Demarest Murray for Petitioner-
Appellee Hospice at Greensboro, Inc. d/b/a Hospice and
Palliative Care of Greensboro and Hospice of the Piedmont,
Inc.
Williams Mullen Maupin Taylor, P.C. by Marcus C. Hewitt and
Kevin Benedict for Respondent-Intervenor-Appellant Carrolton
Home Care, Inc.
Attorney General Roy A. Cooper, III by Assistant Attorney
General June S. Ferrell for the State.Atty
STROUD, Judge.
Respondent-intervenor Carrolton Home Care, Inc., d/b/a
Community Home Care and Hospice (Community) appeals from the
Final Agency Decision by the North Carolina Department of Health
and Human Services (DHHS), Division of Facility Services (DFS),
which granted summary judgment in favor of Hospice at Greensboro,
Inc. d/b/a Hospice and Palliative Care of Greensboro and Hospice of
the Piedmont, Inc. (hereinafter petitioners) in a contested case.
For the following reasons, we affirm the granting of summary
judgment in favor of petitioners.
I. Background
On 8 August 2005, the Certificate of Need Section (CON
Section) of the DHHS, DFS issued a No Review letter
(See footnote 1)
to
Community. The letter was based upon Community's certification to
the CON Section that it had provided hospice services to one
patient in Guilford County, thus allowing it to open a new branch
office of its existing licensed hospice located in Cumberland
County. The CON Section issued the No Review letter based upon
its interpretation of
In re Total Care, Inc.
See Hospice At
Greensboro, Inc. v. North Carolina Dept. of Health and Human
Services, ___ N.C. App. ___, ___, 647 S.E.2d 651, 659 (2007).[T]he CON Section has interpreted
In re Total Care to create a new
definition of service area, such that a health service provider's
service area is any area in which it has recently served at least
one patient.
Hospice At Greensboro, Inc., at ___, 647 S.E.2d at
659;
see also id. at 653-60 (discussing the one patient rule as
developed and applied by the CON Section).
The No Review letter authorized Community to open a hospice
office in Guilford County, North Carolina without first obtaining
a Certificate of Need (CON). On 12 August 2005, based upon the
No Review letter, Community applied for a license from DHHS, DFS
Licensure and Certification Section (LC Section), to operate a
branch office in Guilford County. The LC Section granted the
license on 16 August 2005, with an effective date of 4 August 2005.
Community obtained its license twenty-three days before petitioners
filed this contested case.
Petitioners contested the DHHS, DFS CON Section's issuance of
a No Review letter to Community. Petitioners contended the
Guilford County office was required to have a CON while Community
argued that its office is a branch office of its existing
licensed and certified Cumberland County hospice which does not
require a CON. The final DHHS, DFS agency decision determined that
the Guilford County office must obtain a CON and granted summary
judgment in favor of petitioners. Community appeals.
Community raises four issues on appeal: (1) whether the LC
Section's issuance of a license for Community's Guilford County
hospice office, which then became fully operational, mooted thecontested case filed by petitioners; (2) whether Community
established a new institutional health service in Guilford County
for which it was required to obtain a CON; (3) whether the CON
Section had statutory authority to require a CON for a hospice
branch office prior to 31 December 2005; and (4) whether the LC
Section acted properly in issuing a license to Community.
The factual situation and the legal issues presented by this
case are substantially identical to those in two cases recently
decided by this Court.
See Hospice At Greensboro, Inc., ___ N.C.
App. ___, 647 S.E.2d 651;
Hospice & Palliative Care Charlotte
Region v. North Carolina Dept. of Health and Human Services, ___
N.C. App. ___, 648 S.E.2d 284 (2007). Our holdings in the case
sub judice are therefore determined by those prior cases. Where
a panel of the Court of Appeals has decided the same issue, albeit
in a different case, a subsequent panel of the same court is bound
by that precedent, unless it has been overturned by a higher
court. (citations omitted).
In re Appeal from Civil Penalty, 324
N.C. 373, 384, 379 S.E.2d 30, 37 (1989).
II. Mootness
Community contends that the LC Section's issuance of a license
for Community's Guilford County hospice office, which then became
fully operational, mooted the contested case filed by
petitioners. In
Hospice & Palliative Care Charlotte Region, we
addressed this same mootness issue and held that DFS did not err
by concluding that the Licensure and Certification Section's
issuance of a license for Community's . . . County hospice office,which then became 'fully operational,' did not moot the contested
case filed by [petitioners].
Hospice & Palliative Care Charlotte
Region at ___, 648 S.E.2d at 287. The present case is controlled
by
Hospice & Palliative Care Charlotte Region, and therefore
petitioner's argument is not moot even with Community's Guilford
County's hospice being 'fully operational.'
See id. This
assignment of error is overruled.
III. New Institutional Health Service
Community next argues that it did not establish a new
institutional health service in Guilford County for which it was
required to obtain a CON.
[A]n existing institutional health
service must obtain a new CON to open a 'branch office' outside its
service area. Such an office, regardless of the label affixed by
its developer, is a 'new institutional health service' for which a
CON is required.
See Hospice At Greensboro, Inc., at ___, 647
S.E.2d at 660-61 (emphasis added).
A hospice's service area is the county in which it is
located.
See Hospice At Greensboro, Inc., at ___, 647 S.E.2d at
658;
see also N.C. Gen. Stat. § 131E-176(24a) (2005). Community's
Guilford County office is outside0 its service area as the new
office is in a different county than the Cumberland County office.
See id. Thus, because the Guilford County office is outside
Community's service area, it is a 'new institutional health
service' for which a CON is required.
See id. at ___, 647 S.E.2d
at 658, 660-61. This assignment of error is overruled.
IV. Statutory Authority
Community also argues that the CON Section did not have
statutory authority to require a CON for a hospice branch office
prior to 31 December 2005. In
Hospice & Palliative Care Charlotte
Region,, we addressed and
rejected Community's argument that the
CON section had no statutory authority to require a certificate of
need for a hospice 'branch office' prior to 31 December 2005.
(See footnote 2)
See Hospice & Palliative Care Charlotte Region at ___, 648 S.E.2d
at 288.
In
Hospice & Palliative Care Charlotte Region, this Court
found that a specific hospice was a new institutional health
service created prior to 31 December 2005 and that as such it had
to obtain a CON.
See id. The Court specifically stated that
[o]ur holding in
Hospice at Greensboro [requiring a 'new
institutional health service' to obtain a CON] applied to the
definition of 'new institutional health service' as set forth in
N.C. Gen. Stat. § 131E-176 prior to 31 December 2005.
See id. In
the present case, the No Review letter was filed 8 August 2005,
prior to 31 December 2005.
See id. The holding in
Hospice &
Palliative Care Charlotte Region therefore controls.
See id. We
hold that the Final Agency Decision correctly concluded that
Community established a new institutional health service in
Guilford County for which it was required to obtain a CON.
See id.V. License
Due to our rulings on the first three issues, we need not
address Community's fourth issue of whether the LC Section acted
properly in issuing a license to Community. The Final Agency
Decision concluded that the LC Section erred in issuing a license
to Community on two grounds, one of which was the requirement of a
CON. As we have determined that the LC Section should not have
issued a license without a CON, we will not address the alternate
grounds for the Final Agency Decision, which was that Community had
not satisfied all licensure requirements.
VI. Conclusion
We therefore hold that Community's Guilford County office is
a new institutional health service which requires a CON and
affirm the Final Agency Decision entered on or about 22 August 2006
by DHHS, DFS Director Robert J. Fitzgerald awarding summary
judgment to petitioners.
AFFIRMED.
Judges ELMORE and STEELMAN concur.
Report per Rule 30(e).
Footnote: 1