Bayfront Hma Medical Center, L L C D/B/A Bayfront Health-St. Petersburg v. Dept. of Health
CourtDistrict Court of Appeal of Florida
Date FiledJanuary 31, 2020
Docket2D18-3781
StatusPublished
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Full Opinion
NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING
MOTION AND, IF FILED, DETERMINED
IN THE DISTRICT COURT OF APPEAL
OF FLORIDA
SECOND DISTRICT
BAYFRONT HMA MEDICAL )
CENTER, LLC d/b/a BAYFRONT )
HEALTH - ST. PETERSBURG, )
)
Appellant, )
)
v. ) Case No. 2D18-3781
)
DEPARTMENT OF HEALTH )
and GALENCARE, INC. )
d/b/a NORTHSIDE HOSPITAL, )
)
Appellees. )
)
Opinion filed January 31, 2020.
Appeal from the Department of Health.
Corinne T. Porcher, Geoffrey D. Smith,
and Timothy B. Elliott of Smith &
Associates, Tallahassee, for Appellant.
Michael Jovane Williams, Appellate
Counsel, Tallahassee, for Appellee
Department of Health.
Stephen A. Ecenia, Gabriel F. Warren,
and J. Stephen Menton, of Rutledge
Ecenia, P.A., Tallahassee, for Appellee
Galencare, Inc. d/b/a Northside Hospital.
ATKINSON, Judge.
Bayfront HMA Medical Center, LLC d/b/a Bayfront Health - St. Petersburg
(Bayfront) appeals the entry of a final order by the Florida Department of Health
(Department), approving the application of Galencare, Inc. d/b/a Northside Hospital
(Northside) to become a Level II trauma center. We agree with the parties that this was
erroneous in light of the intervening amendments to chapter 395, Florida Statutes
(2017), and therefore reverse.
Northside applied to become a provisional Level II trauma center on
March 31, 2017. After the Department denied the application, Northside sought
administrative review. Bayfront intervened, opposing Northside's application. After
holding a multiday hearing, the administrative law judge (ALJ) entered a recommended
order on December 20, 2017, approving Northside's application. The legislature
amended the operative provisions of the trauma statutes—sections 395.402(1) and
395.4025(3)(d), Florida Statutes (2018)—effective March 21, 2018.
Shortly thereafter, the parties entered into a settlement agreement,
agreeing that Northside would immediately file a motion for an abeyance, which would
continue until either (1) the new law was not challenged on constitutional grounds within
six months; (2) the new law was challenged on constitutional grounds, the new law was
upheld, and all appeals were exhausted; or (3) the new law was "fully implemented" and
counsel for Northside was satisfied the case was moot. Upon the occurrence of any of
these events, Northside agreed to dismiss the administrative case with prejudice prior to
entry of a final order by the Department. However, on May 10, 2018, an action was filed
in Tallahassee seeking declaratory and injunctive relief on the basis that the new law
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was unconstitutional. See Variety Children's Hosp. v. Dep't of Health, No. 2018-CA-
1072 (Fla. 2nd Cir. Ct. May 10, 2018).1
Northside filed an unopposed motion to hold the proceeding in abeyance
for ninety days, although it did not mention the parties' settlement agreement. On
August 24, 2018, the Department issued a final order on Northside's application based
upon the old trauma statutes. The Department denied Bayfront's exceptions to the
recommended order and approved Northside's application. Bayfront moved to vacate
the final order. Northside filed a response in opposition, claiming that the final order
correctly determined that Northside met the Department's standards to operate a
provisional Level II trauma center and that those standards were not changed by the
new trauma law. Conceding that the order did not authorize Northside to operate
because it was unable to do so under the new statutes, Northside nonetheless stated in
opposition to the motion to vacate that it "reserve[d] all rights in the event of hypothetical
developments which could impact [trauma service area] 9, including the [amendments
to the] Trauma Law being invalidated or changed, or the closing of a trauma center that
is currently operating in [trauma service area] 9." Without a ruling on its motion to
vacate, Bayfront filed the instant appeal.
On appeal, Northside asserts that while the order should be vacated
because the administrative case was rendered moot by the new trauma statutes its
administrative petition should remain pending until the outcome of the appeal of the
1The circuit court upheld the statute as a constitutional general law, and
Variety filed an appeal. See Variety Children's Hosp. v. Dep't of Health, No. 1D19-1842
(Fla. 1st DCA filed May 17, 2019).
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constitutional challenge. Bayfront seeks remand for entry of a final order denying
Northside's application.
Where there is a change in a statute during the pendency of a licensing
application, "the law as changed, rather than as it existed at the time the application was
filed, determines whether the license should be granted." Cantrall v. Dep't of Highway
Safety & Motor Vehicles, 828 So. 2d 1062, 1063 (Fla. 2d DCA 2002) (quoting Lavernia
v. Dep't of Prof'l Regulation, Bd. of Med., 616 So. 2d 53, 53–54 (Fla. 1st DCA 1993));
accord E.J. v. Dep't of Children & Families, 219 So. 3d 946, 947 (Fla. 3d DCA 2017).
Accordingly, the Department was required to apply the versions of sections 395.402 and
395.4025 that became effective on March 21, 2018. It erred by applying the prior
version of these statutes and by entering a final order approving Northside's application.
Contrary to the contention of Northside and the Department, the new
trauma statutes did not render Northside's administrative case moot. "A case becomes
moot . . . where . . . an intervening event makes it impossible for the court to grant a
party any effectual relief." Montgomery v. Dep't of Health & Rehab. Servs., 468 So. 2d
1014, 1016 (Fla. 1st DCA 1985); accord WFTV, Inc. v. Robbins, 625 So. 2d 941, 943
(Fla. 4th DCA 1993) ("Mootness occurs when the issues presented are no longer live or
when the parties lack a legally cognizable interest in the outcome."). The amendment to
the trauma statutes is not an intervening event making it impossible for the Department
to grant a party any effectual relief. See Montgomery, 468 So. 2d at 1016. The law
simply changed, requiring the Department to grant the relief that Bayfront seeks—denial
of Northside's administrative petition. See Microdecisions, Inc. v. Skinner, 889 So. 2d
871, 873 (Fla. 2d DCA 2004) (noting that a case is not moot unless it "has been so fully
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resolved that a judicial determination can have no actual effect" (quoting Montgomery,
468 So. 2d at 1016 (emphasis added))).
The parties agree that Northside cannot operate a trauma center under
the new trauma statutes because it would exceed the statutory maximum of three
trauma centers for the trauma service area in which Northside is located. See §
395.402(1)(a)(9), (1)(c)(9). And they agree that the Department may not approve
Northside's application. See § 395.4025(3)(d) ("Except as otherwise provided in this
part, the [D]epartment may not approve an application . . . if approval of the application
would exceed the limits on the numbers of . . . trauma centers set forth in s.
395.402(1).").
The parties do not agree, however, on the scope of remand. Northside
requests that the order be merely vacated. Whereas Bayfront seeks remand for entry of
a final order denying Northside's application.
Because it was entered in error based on statutory provisions that had
been superseded by legislative amendment, the Department's order must be set aside.
And the law currently in effect requires Northside's application to be denied. As a result,
we are authorized to order such action. See § 120.68(6)(a), Fla. Stat. (2018) (providing
that the decision of a court reviewing final agency action "may be mandatory,
prohibitory, or declaratory in form" and "shall provide whatever relief is appropriate
irrespective of the original form of the petition," including not only the "set[ting] aside [of]
agency action" but also the ordering of "agency action required by law").
Northside argues against such a remedy, asserting that final adjudication
of the administrative action could "sow confusion" in the event that another court
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declares the statute unconstitutional, whereas merely setting aside the Department's
previous order would allow "the administrative case [to] return to the status quo ante
that existed immediately prior to the passage of the New Law"—the ALJ's
recommended order "pending before" the Department. However, this court is required
to set aside agency action when a correct interpretation of a provision of law "compels a
particular action." § 120.68(7)(d). Remanding a case for inaction would not be
consistent with that charge.
The fact that the constitutionality of a relevant statute has been challenged
in another case does not justify having the Department forebear taking the "particular
action" compelled by application of the law currently in effect. Cf. Int'l Truck & Engine
Corp. v. Capital Truck, Inc., 872 So. 2d 372, 376 (Fla. 1st DCA 2004) (quashing nonfinal
order of the Department of Highway Safety and Motor Vehicles abating administrative
action until the conclusion of the pending appeal of a final order in related circuit court
case). Such a remedy would be the functional equivalent of a temporary injunction
pending appeal of an entirely separate case, involving different parties, without
allegations and proof of facts entitling Northside to such relief. See Reserve at
Wedgefield Homeowners' v. Dixon, 948 So. 2d 65, 67 (Fla. 5th DCA 2007) ("A
preliminary injunction is an extraordinary remedy which should be granted only if the
party seeking the injunction establishes the following criteria: (1) the likelihood of
irreparable harm; (2) the unavailability of an adequate remedy at law; (3) substantial
likelihood of success on the merits; and (4) consideration of the public interest."
(quoting Dragomirecky v. Town of Ponce Inlet, 882 So. 2d 495, 496 (Fla. 5th DCA
2004))).
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As such, we vacate the Department's final order and remand with
instructions for the Department to enter a final order on Northside's petition based on
the amended trauma statutes.
Reversed and remanded.
SILBERMAN and BLACK, JJ., Concur.
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