ORDERS:
CONSENT ORDER
The two contested case hearings referenced above are before this Court on appeals of
certificates of need that were granted in each of the two proceedings by the South Carolina
Department of Health and Environmental Control ("SCDHEC").
In Docket No. 97-ALJ-07-0099-CC, Self Memorial Hospital ("SMH") requested a
certificate of need for the conversion of thirty-eight (38) of its acute care hospital beds to thirty-eight (38) nursing home beds to be used for sub-acute or transitional care. SCDHEC approved
the certificate of need. NHC HealthCare Greenwood ("NHC") has appealed that approval and
has requested a contested case hearing in the Administrative Law Judge Division.
In Docket No. 97-ALJ-07-0162-CC, NHC requested a certificate of need for the
construction of 12,720 additional square feet to include twenty (20) replacement nursing home
beds, therapy and ancillary space for a total license capacity to remain at one-hundred fifty-two
(152) nursing home beds. SCDHEC approved the certificate of need. SMH has appealed that
approval and has requested a contested case hearing in the Administrative Law Judge Division.
The parties to each of the two contested cases have advised the Court that they have
reached an agreement for the settlement of the contested issues in these cases, the terms of which
are set out below. Following a telephone conference in which the attorneys for each party in
these cases participated, and upon review of the proposed settlement, this Court finds that the
terms of the proposed settlement are in the public interest and are permissible under the
governing statutes and regulations of the State of South Carolina, including applicable
regulations of SCDHEC.
Therefore, this Court finds that the following matters have been agreed to by all parties
and orders the same.
1. The appeal and request for a contested hearing in Docket No. 97-ALJ-07-0162-CC is hereby dismissed with prejudice and the decision of SCDHEC granting a certificate of
need for the construction of 12,720 additional square feet to include 20 replacement nursing
home
beds, therapy and ancillary space for a total license capacity to remain at 152 nursing home beds,
is affirmed.
2. The decision of SCDHEC in Docket No. 97-ALJ-07-0099-CC approving a
certificate of need for the conversion of 38 general acute care beds of SMH to 38 hospital based
nursing home beds is amended by agreement of the parties and the consent of this Court. SMH
will submit by letter to SCDHEC a request for modification of its application for a Certificate
of Need. SCDHEC will, within fifteen (15) days of the receipt of such letter, send written
confirmation to SMH that the modification does not constitute a significant change that would
require re-application pursuant to S.C. Code Ann. Regs. 61-15 §310. Thereafter, SCDHEC is
ordered to issue, not later than ten (10) days after SCDHEC sends such confirming letter, a
Certificate of Need in this Docket, for the conversion of 27 general acute care beds to 27 hospital
based nursing home beds, for a total capacity of 334 general acute care beds (medical/surgical,
obstetrics, pediatrics, and ICU/CCU), 24 substance abuse beds, 36 psychiatric beds, and 27
hospital based nursing home beds.
3. SMH agrees that it will not make application for the conversion of any of its
additional general acute care beds to hospital based nursing home beds nor will SMH make
application for any new nursing home bed documented as needed for Greenwood County in the
applicable annual State Health Plan for a period of five years from the date of this Order. In the
event, however, that SCDHEC creates a new separate hospital based bed licensure category for
sub-acute or transitional care beds, distinct from hospital based nursing home beds, nothing in
this Order shall preclude SMH from making application for the conversion of its general acute
care beds to such separately licensed sub-acute or transitional care beds.
4. In the event that SCDHEC undertakes consideration of regulatory revisions and
revisions to the State Health Plan to create a separate bed category of, and separate licensing
procedure for, sub-acute or transitional care beds, as distinct from hospital based nursing home
beds, neither SMH nor NHC will object to the creation of such a new category of beds and
separate licensing procedure. Nothing in this Order, however, shall be construed to require
SCDHEC to consider or create a separate bed category of, and separate licensing procedure for,
sub-acute or transitional care beds, as distinct from hospital based nursing home beds.
5. Representatives of each of SMH and NHC agree to confer in good faith in person
for the purpose of discussing their ongoing relationship as providers of healthcare services in
Greenwood County and in an attempt to insure that the course of the proceedings in these two
contested cases has not and will not negatively affect that ongoing relationship.
6. Both Self and NHC agree that in the event either of them breaches the terms of
this Consent Order and one of them is required to enforce the terms hereof, the party seeking
enforcement shall, if successful, be entitled to reasonable attorneys fees and costs.
AND IT IS SO ORDERED THIS 11th DAY OF JUNE, 1997.
s/Stephen P. Bates
Administrative Law Judge |