Private hospitals appeal circuit court ruling denying them indigent care fees
Private hospitals that operate in Sarasota County have appealed a November circuit court ruling that said they were not entitled to millions of dollars in reimbursement to cover the cost of providing indigent care.
When the suit was filed in 2011, the three hospitals were seeking $100 million. Since then, it has grown to roughly five times that sum.
The ruling by 12th Circuit Court Judge Andrea McHugh on Nov. 10 was based in part on the fact that the private hospitals – two of which now do business as HCA Sarasota Doctors Hospital and HCA Florida Englewood Hospital – as well as the now defunct ShorePoint Health Venice, are bound by state and federal laws to provide care for the poor.
Related:Judge rules for Sarasota County in long-running indigent care lawsuit
She also agreed with Sarasota County’s stance that it could not be sued because of the doctrine of sovereign immunity, which insulates governments from lawsuits.
Hospital Corporation of America, which owns both Doctors Hospital and Englewood Hospital, is challenging that ruling, in hopes of an outcome similar to one by the Florida Supreme Court in 2017 on a related case.
“We appreciate the court’s consideration of our appeal,” Julie Beatty, a spokeswoman for Englewood Hospital said via email. ”We look forward to going through the legal process as we believe the law was intended to provide financial support for underinsured or uninsured patients who need hospital care.”
The appeals court is typically limited to whether due process was followed and whether the lower court's decision departed from essential requirements of the law.
Carol Ann Kalish, chief legal officer for Sarasota Memorial Health Care System, was not surprised by the appeals.
"While not unexpected, it is disappointing that the for-profit hospitals continue this ill-conceived effort, especially CHS, which pulled out of Sarasota County with its unexpected closure of its hospital in Venice,” Kalish said via email.
Community Health Systems Inc., the Franklin, Tennessee-based parent company of ShorePoint Health Venice Hospital, closed that facility Sept. 22.
The company later rebuffed attempts by Sarasota Memorial to lease a portion of the emergency department but did strike a deal with the federal government to open the otherwise idle property as a shelter for people temporarily displaced by Hurricane Ian.
Earlier:ShorePoint Health Venice Hospital closes; officials rebuff lease proposal from SMH
CHS still operates hospitals in Punta Gorda and Port Charlotte under the ShorePoint Health banner.
ShorePoint spokeswoman Devyn Brazelton said via email that the parent company declined to comment on the suit.
Long case history
The private hospitals have recently received favorable rulings issued by the Second District Court of Appeal, which in June 2021, agreed with a circuit court ruling against issuing a summary judgment on the case that hinges on Sarasota County’s current sovereign immunity claim.
That resulted in the hearing before McHugh.
In August 2015, however, the appeals court ruled in favor of Sarasota County on a related suit, in which Sarasota County argued that a portion of a 2003 act of the state Legislature re-adopted all laws creating special districts – including the 1959 law that created the Sarasota County Hospital Taxing District – was unconstitutional because it applied only to Sarasota County and would single out private hospitals in Sarasota County for payments.
In July 2017, the Florida Supreme Court, on a 5-2 vote, overruled that appeals court decision.
Sarasota County contended that provision should be considered unconstitutional because a 1968 Florida Constitution rewrite did not contain language stating that governments must pay for indigent care.
Sarasota County appealed that ruling – contending both that any payment must be approved by Sarasota County voters and that the court incorrectly applied case law from a St. Lucie County lawsuit that involved only private hospitals – and pursued the current argument of sovereign immunity defense.
Earlier:Sarasota County wants rehearing in massive hospital lawsuit
The private hospitals found that special act provision in 2008 and started submitting lists of patients, seeking reimbursement. Those lists led to the 2011 suit.
In her ruling, McHugh noted the hospitals did not fully comply with the special act; notably, they did not determine whether the patients on their certified lists were medically indigent and did not submit itemized charges to Sarasota County.
She later noted that sovereign immunity could only be waived by a general law that applied throughout the state or by an express, written contract.
This article originally appeared on Sarasota Herald-Tribune: Indigent care fee case appealed, Sarasota County could pay millions
