ORDERS:
SETTLEMENT ORDER
On October 9, 2000, a settlement of this matter was presented with the settlement based upon the following stipulations agreed to by
both parties, Carolina Orthopaedic Surgery Center (Surgery Center) and South Carolina Department of Health and Environmental
Control (DHEC):
1. On July 20, 1999, DHEC received Surgery Center's application for a CON. The application proposed the construction of an
ambulatory surgery center for the single specialty of orthopaedic surgery in Greenville, South Carolina.
- The application was filed under, and is governed by, the 1999 State Health Plan.
- A thorough review of the project was conducted pursuant to Reg. 61-15, and the 1999 State Health Plan. The application was
placed on public notice. The DHEC staff made site visits to Greenville.
- After DHEC conducted its review of the project, the staff concluded that the CON application should be denied. On December 22,
1999, DHEC notified Surgery Center of its intent to deny the CON.
- Surgery Center requested a reconsideration of the staff's decision on December 31, 1999. DHEC reconsidered the project, but
again concluded that the CON should be denied. On January 28, 2000, DHEC notified Surgery Center that the CON was denied,
on the following grounds:
a. The project did not meet the criteria set forth in the 1999 State Health Plan;
b. The applicant did not establish a need for the project;
c. The project would unnecessarily duplicate existing services in the area.
- Surgery Center requested a contested case hearing on February 4, 2000.
- Though the application was placed on public notice, and providers were aware of the pending contested case, no health provider in
the Greenville service area filed a motion to intervene.
- During the course of preparation for litigation, DHEC determined utilization trends in the Greenville service area were increasing
at a rate higher than previously projected.
- DHEC, in a good faith effort to address the appeal of Surgery Center, re-evaluated the utilization of outpatient surgery centers in
the Greenville service area using data more recent than the data provided during the CON application process. DHEC believes that
utilization of ambulatory surgery centers on Greenville's east side will, through growth in population and out-patient surgery
incident rates, increase to a level that would justify another ambulatory surgery center on Greenville's east side by September 1,
2001.
- The parties agree that the current population data and utilization trends for the Greenville service area establish a need for this
orthopaedic surgery center.
- The parties also agree that the issuance of a CON to Surgery Center, effective September 1, 2001, will not duplicate existing
services in the area, nor will it adversely impact existing providers.
- The parties further agree that the issuance of a CON to Surgery Center is consistent with the criteria set forth in the 1999 State
Health Plan.
The Surgery Center and DHEC have entered into good faith negotiations, and as evidenced by their representations to me of their
consent, have reached a settlement regarding the matters at issue in this case. The settlement is that DHEC will issue the requested
CON for Surgery Center's ambulatory surgery center on Greenville's east side but that the CON will not be effective until September
1, 2001. Both parties have entered into this settlement agreement willingly and have given consideration in exchange for the terms of
this agreement.
Accordingly, a controversy no longer being in existence between the parties to this case, this matter is dismissed and ended with
prejudice. The parties shall take future actions consistent with the settlement reached.
AND IT IS SO ORDERED.
__________________________________
RAY N. STEVENS
Administrative Law Judge
Dated: October 9, 2000
Columbia, South Carolina |
