{ "id": 4277873, "name": "ASSOCIATION FOR HOME AND HOSPICE CARE OF NORTH CAROLINA, INC., Petitioner v. DIVISION OF MEDICAL ASSISTANCE, NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES, Respondent", "name_abbreviation": "Association for Home & Hospice Care of North Carolina, Inc. v. Division of Medical Assistance", "decision_date": "2011-08-16", "docket_number": "No. COA10-710", "first_page": "522", "last_page": "528", "citations": [ { "type": "official", "cite": "214 N.C. App. 522" } ], "court": { "name_abbreviation": "N.C. Ct. App.", "id": 14983, "name": "North Carolina Court of Appeals" }, "jurisdiction": { "id": 5, "name_long": "North Carolina", "name": "N.C." }, "cites_to": [ { "cite": "617 S.E.2d 715", "category": "reporters:state_regional", "reporter": "S.E.2d", "case_ids": [ 12633754 ], "weight": 2, "year": 2005, "pin_cites": [ { "page": "718" } ], "opinion_index": 0, "case_paths": [ "/se2d/617/0715-01" ] }, { "cite": "652 S.E.2d 284", "category": "reporters:state_regional", "reporter": "S.E.2d", "case_ids": [ 12639684 ], "year": 2007, "pin_cites": [ { "page": "298", "parenthetical": "\"A matter is rendered moot when (1) the alleged violation has ceased, and there is no reasonable expectation that it will recur, and (2) interim relief or events have completely and irrevocably eradicated the effects of the alleged violation.\" (internal quotation marks omitted)" } ], "opinion_index": 0, "case_paths": [ "/se2d/652/0284-01" ] }, { "cite": "2011 WL 31022", "category": "reporters:specialty_west", "reporter": "WL", "year": 2011, "opinion_index": 0 }, { "cite": "56 S.E. 794", "category": "reporters:state_regional", "reporter": "S.E.", "year": 1907, "pin_cites": [ { "page": "797", "parenthetical": "railroad reports to the Corporation Commission judicially noticed" } ], "opinion_index": 0 }, { "cite": "144 N.C. 135", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8659009 ], "year": 1907, "pin_cites": [ { "page": "145", "parenthetical": "railroad reports to the Corporation Commission judicially noticed" } ], "opinion_index": 0, "case_paths": [ "/nc/144/0135-01" ] }, { "cite": "221 S.E.2d 322", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1976, "pin_cites": [ { "page": "323-24", "parenthetical": "\"This Court has recognized in the past that important public documents will be judicially noticed. Staton v. R.R., 144 N.C. 135, 145, 56 S.E. 794, 797 (1907) (railroad reports to the Corporation Commission judicially noticed" } ], "opinion_index": 0 }, { "cite": "289 N.C. 286", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 8568034 ], "year": 1976, "pin_cites": [ { "page": "288", "parenthetical": "\"This Court has recognized in the past that important public documents will be judicially noticed. Staton v. R.R., 144 N.C. 135, 145, 56 S.E. 794, 797 (1907) (railroad reports to the Corporation Commission judicially noticed" } ], "opinion_index": 0, "case_paths": [ "/nc/289/0286-01" ] }, { "cite": "242 S.E.2d 653", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1978, "pin_cites": [ { "page": "654-55" } ], "opinion_index": 0 }, { "cite": "35 N.C. App. 768", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8552412 ], "year": 1978, "pin_cites": [ { "page": "770" } ], "opinion_index": 0, "case_paths": [ "/nc-app/35/0768-01" ] }, { "cite": "699 S.E.2d 646", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 2010, "pin_cites": [ { "page": "648", "parenthetical": "internal quotation marks and citations omitted" } ], "opinion_index": 0 }, { "cite": "173 N.C. App. 180", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8353121 ], "year": 2005, "pin_cites": [ { "page": "183" } ], "opinion_index": 0, "case_paths": [ "/nc-app/173/0180-01" ] }, { "cite": "478 S.E.2d 816", "category": "reporters:state_regional", "reporter": "S.E.2d", "weight": 2, "year": 1996, "pin_cites": [ { "page": "820-21", "parenthetical": "internal quotation marks and citations omitted" } ], "opinion_index": 0 }, { "cite": "124 N.C. App. 698", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 11890512 ], "year": 1996, "pin_cites": [ { "page": "705", "parenthetical": "internal quotation marks and citations omitted" } ], "opinion_index": 0, "case_paths": [ "/nc-app/124/0698-01" ] }, { "cite": "451 S.E.2d 858", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1994, "pin_cites": [ { "page": "866" } ], "opinion_index": 0 }, { "cite": "339 N.C. 358", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 2556344 ], "year": 1994, "pin_cites": [ { "page": "370" } ], "opinion_index": 0, "case_paths": [ "/nc/339/0358-01" ] }, { "cite": "187 N.C. App. 1", "category": "reporters:state", "reporter": "N.C. App.", "case_ids": [ 8371651 ], "year": 2007, "pin_cites": [ { "page": "20", "parenthetical": "\"A matter is rendered moot when (1) the alleged violation has ceased, and there is no reasonable expectation that it will recur, and (2" } ], "opinion_index": 0, "case_paths": [ "/nc-app/187/0001-01" ] }, { "cite": "474 S.E.2d 783", "category": "reporters:state_regional", "reporter": "S.E.2d", "year": 1996, "pin_cites": [ { "page": "787" } ], "opinion_index": 0 }, { "cite": "344 N.C. 394", "category": "reporters:state", "reporter": "N.C.", "case_ids": [ 867707 ], "year": 1996, "pin_cites": [ { "page": "398-99" } ], "opinion_index": 0, "case_paths": [ "/nc/344/0394-01" ] }, { "cite": "42 C.F.R. \u00a7 430.12", "category": "laws:admin_compilation", "reporter": "C.F.R.", "weight": 3, "year": 2010, "opinion_index": 0 }, { "cite": "42 U.S.C. \u00a7\u00a7 1396", "category": "laws:leg_statute", "reporter": "U.S.C.", "pin_cites": [ { "page": "et seq." } ], "opinion_index": 0 } ], "analysis": { "cardinality": 855, "char_count": 15665, "ocr_confidence": 0.742, "pagerank": { "raw": 7.374832643610208e-08, "percentile": 0.44198117341976306 }, "sha256": "f17d620bc348ef3107d8b9e6481c16dad25351edab8fd9f41c21cdb5838e714b", "simhash": "1:0923923f6bbe2b70", "word_count": 2486 }, "last_updated": "2023-07-14T17:33:33.584356+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Judges BRYANT and STROUD concur." ], "parties": [ "ASSOCIATION FOR HOME AND HOSPICE CARE OF NORTH CAROLINA, INC., Petitioner v. DIVISION OF MEDICAL ASSISTANCE, NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES, Respondent" ], "opinions": [ { "text": "BEASLEY, Judge.\nWhere the Personal Care Services (PCS) Medicaid program and related coverage policy have been terminated, we dismiss this appeal as moot.\nPetitioner Association for Home and Hospice Care (AHHC) is an association of agencies that provide home care services to Medicaid-eligible residents. North Carolina\u2019s Medicaid program is supervised and administered by Respondent Division of Medical Assistance (DMA), an agency within the Department of Health and Human Services (DHHS). See N.C. Admin. Code tit. 10A, r. 22A .0101 (2009). This case arises from an administrative action in which AHHC challenged a new methodology for calculating coverage under the PCS Medicaid program, and the administrative law judge (ALJ) preliminarily enjoined DMA from implementing the same. AHHC appeals the superior court\u2019s order reviewing the injunction and directing that the contested case be dismissed.\nMedicaid is an optional program making federal financial assistance available to states that elect to subsidize payments owed providers. 42 U.S.C. \u00a7\u00a7 1396 et seq. Participating states must obtain approval by the Centers for Medicare and Medicaid Services (CMS) of a \u201cmedical assistance\u201d plan (State Plan) and any \u201cmaterial changes\u201d thereto. 42 C.F.R. \u00a7 430.12 (2010). In-home personal care services constitute an optional category of medical assistance that states may choose to include in its plan, see 42 U.S.C. 1396a(a)(10)(A) (2009), and, in general, are physician-authorized services furnished in-home by a qualified provider to an individual who is not a hospital inpatient or a resident of a nursing home, institution, or like facility, See 42 U.S.C. \u00a7 1396d(a)(24). North Carolina has elected to' provide these services, see N.C. Admin. Code tit. 10A, r. 22 0.0120, and, until recently, did so under programs referred to as PCS and PCS-Plus, which were governed by DMA Policy 3C.\nA budgetary measure passed in August 2009 (Budget Bill) obliged DMA to effectuate compliance with reductions in Medicaid spending and explicitly addressed PCS. See 2009 N.C. Sess. Laws ch. 451 \u00a7 10.68A.(a). The law required DMA to implement certain new criteria for assessing PCS eligibility and the level of assistance needed by those who qualified, id. \u00a7 10.68A.(a)(3). DMA thus adopted a \u201cscoring algorithm\u201d to refine the methodology for determining the number of approved PCS hours and contracted with a third-party entity to conduct independent assessments of all PCS plans of care. These changes to the PCS program prompted AHHC to file a contested case petition, alleging DMA violated the Budget Bill\u2019s procedural mandates to, inter alia, provide notice of, publish, and allow a 30-day comment period for amended medical coverage policies. See id. \u00a7 10.68.A(c).\nPending a full adjudication on the merits, the ALJ enjoined DMA from using the scoring algorithm to assign PCS hours and from conditioning payment of PCS hours on prior authorization Prior to any ALJ decision, however, DMA petitioned the Wake County Superior Court \u201cto suspend and review\u201d the preliminary injunction. The trial court granted DMA\u2019s writ of certiorari and concluded that the ALJ lacked jurisdiction to enter the injunction order \u201cby reason of sovereign immunity.\u201d The trial court dissolved the preliminary injunction and further enjoined the AU \u201cfrom taking any further action in this matter other than dismissing the contested case.\u201d AHHC appeals and argues that the superior court: (i) lacked jurisdiction over DMA\u2019s petition for certiorari because the order was not a final agency decision subject to judicial review; (ii) erroneously applied sovereign immunity to dismiss the contested case; and (iii) erred in granting DMA\u2019s petition because it had no merit. We do not reach the issues raised by AHHC because this appeal is moot.\n\u201cA case is \u2018moot\u2019 when a determination is sought on a matter which, when rendered, cannot have any practical effect on the existing controversy.\u201d Roberts v. Madison County Realtors Assn., 344 N.C. 394, 398-99, 474 S.E.2d 783, 787 (1996); see also Kinesis Adver., Inc. v. Hill, 187 N.C. App. 1, 20, 652 S.E.2d 284, 298 (2007) (\u201cA matter is rendered moot when (1) the alleged violation has ceased, and there is no reasonable expectation that it will recur, and (2) interim relief or events have completely and irrevocably eradicated the effects of the alleged violation.\u201d (internal quotation marks omitted)). If \u201cduring the course of litigation it develops that. . . the questions originally in controversy between the parties are no longer at issue, the case should be dismissed,\u201d as the matter is no longer justiciable. Simeon v. Hardin, 339 N.C. 358, 370, 451 S.E.2d 858, 866 (1994). Several exceptions, however, permit our courts to address an otherwise moot claim where there exists, inter alia: (1) \u201ca defendant\u2019s voluntary cessation of a challenged practice\u201d; (2) a case that is \u201ccapable of repetition, yet evading review\u201d; or (3) \u201ca matter of public interest.\u201d Thomas v. N.C. Dept. of Human Resources, 124 N.C. App. 698, 705, 478 S.E.2d 816, 820-21 (1996) (internal quotation marks and citations omitted).\nOn 30 June 2010, the General Assembly passed Session Law 2010-31, which repealed the statutory provisions of the Budget Bill which, as the AU noted, were \u201cthe genesis of the issues in this contested case.\u201d See 2010 N.C. Sess. Laws ch. 31, \u00a7 10.35 (striking the entirety of \u00a7 10.68A.(a)(3) of Session Law 2009-451, which had authorized DMA\u2019s implementation of new PCS criteria). Session Law 10-31 further amended the Budget Bill by adding \u00a7 10.68A.(a)(3a) thereto, which provided that \u201c[i]n order to enhance in-home aid services to .Medicaid recipients, [DMA] shall... no longer provide services under PCS and PCS-Plus, the later of January 1, 2011, or whenever CMS approves the elimination of the PCS and PCS-Plus programs and the implementation of\u2019 two new similar services, In-Home Care for Children (IHCC) and In-Home Care for Adults (IHCA). Id.\nOn 24 September 2010, DMA filed a motion to dismiss AHHC\u2019s appeal for mootness (Motion), contending that the issues raised were no longer in controversy due to: (1) the repeal of the Budget Bill\u2019s provision that authorized the PCS review and methodology change; and (2) a newly promulgated PCS Policy 3C abolishing the use of the scoring algorithm challenged by AHHC. Relying in part on the proposition that \u201c[r]epeal of a challenged law generally renders moot the issue of the law\u2019s interpretation or constitutionality,\u201d Property Rights Advocacy Grp. v. Town of Long Beach, 173 N.C. App. 180, 183, 617 S.E.2d 715, 718 (2005), the agency argued that the legislature\u2019s enactment of Session Law 10-31 and DMA\u2019s rescission of the previous version of Policy 3C mooted the instant appeal. This Court denied DMA\u2019s Motion for various reasons.\nFirst, repeal of the subject budgetary provision might have mooted some, but not all, of AHHC\u2019s claims. It is true that DMA contended the review of PCS hours by the third-party independent assessment entity was .required by the Budget Bill and that AHHC indeed challenged the agency\u2019s interpretation of the bill as unsupported by the plain language. Accordingly, the repeal of the statute would usually \u201crender[] moot the issue of the law\u2019s interpretation.\u201d Id. AHHC\u2019s remaining claims, however, did not entail construction of the Budget Bill or any other law involved but, rather, DMA\u2019s failure to comply therewith. Moreover, DMA argued before this Court that even without the enabling legislation in the .Budget Bill, the agency had authority to conduct the PCS assessments pursuant to its general utilization review power, thus suggesting that the repeal of \u00a7 10.68.A(a)(3) of the Budget Bill would not preclude DMA from reviewing PCS hours and eligibility in the manner challenged. Finally, while Session Law 10-31 legislated away PCS in favor of implementing the two new in home-care services, it expressly conditioned the program changes on CMS approval. When this Court denied DMA\u2019s Motion, CMS had not approved any state plan amendment; thus, the Budget Bill\u2019s PCS sunset provision had not been triggered.\nWhere DMA had suggested that it could re-implement the methodology it had ceased using even without the Budget Bill\u2019s authorization and uncertainty prevailed as to if and when CMS would approve the elimination of PCS, exceptions to the mootness doctrine certainly permit our consideration of the appeal even if AHHC\u2019s claims were technically no longer viable. However, interim events, namely CMS approval to discontinue PCS, have eliminated the effect that any determination in AHHC\u2019s contested case can have on the controversy. Where the mootness issue \u201cis not determined solely by examining facts in existence at the commencement of the action[,] [i]f the issues before a court or administrative body become moot at any time during the course of the proceedings, the usual response should be to dismiss the action.\u201d Carolina Marina and Yacht Club, LLC v. New Hanover County Bd. of Com\u2019rs, _ N.C. App. _, _, 699 S.E.2d 646, 648 (2010) (internal quotation marks and citations omitted).\nOn 15 April 2011 CMS approved the respective North Carolina Medicaid State Plan Amendment (SPA 10-031), noting that the DMA proposal \u201cwas submitted as a result of a change to the State Law that discontinued [PCS] and [PCS-Plus]\u201d; \u201cestablished two new In-Home Personal Care Services\u201d along with \u201cnew eligibility criteria for receipt of [IHCA and IHCC]\u201d; and indicated our state\u2019s \u201cintent to move the coverage of PCS to Section 1915(i) of the Social Security Act\u201d as Home and Community Based Service State Plan Option. The amended pages of the State Plan reflect that In-Home Care Services for Adults and Children are now provided as community based services and describe the parameters of the IHCA and IHCC programs. DMA\u2019s May 2011 North Carolina Medicaid Bulletin notified personal care service providers about the implementation of in-home care (IHC) services and explained that \u201c[effective June 1, 2011, [DMA] will no longer provide services under PCS and PCS-Plus and will implement [the] two new services.\u201d Thus, the PCS and PCS-Plus programs ended on 31 May 2011 and superseded by the IHC services on 1 June. The PCS termination date is further noted on Policy 3C, which is now obsolete, and new Clinical Coverage Policies 3E (IHCA) and 3F (IHCC) have an original effective date of 1 June 2011.\nIn light of the fact that the PCS program has been discontinued entirely, not by DMA but at the direction of our General Assembly, the relief sought by AHHC-reversal of the changes DMA made to the PCS assessment process-if granted, would not have any practical effect on either party. Moreover, the facts in existence at the current stage do not present any exceptions to the general mootness rule. Accordingly, the controversy is no longer appropriate for judicial action, and we dismiss the appeal as moot. See Matthews v. Dept. of Transportation, 35 N.C. App. 768, 770, 242 S.E.2d 653, 654-55 (1978) (\u201cWe find that the substantial amendments to Chapter 126 contained therein, together with the fact that there no longer exists a controversy among the parties in this case, would render our determination of the issues sought to be presented by the defendants little more than an advisory opinion as to the effect of prior law on hypothetical parties.\u201d).\nThe usual disposition when a case is mooted while on appeal is \u201csimply to dismiss the appeal.\u201d Southern Bell, 289 N.C. at 290, 221 S.E.2d at 324. Our Supreme Court has explained, however, that in appeals from this Court, this procedure \u201cleaves the decision of the Court of Appeals undisturbed as a precedent when, but for intervening mootness, it might not have remained so[,]\u201d and advised that \u201cthe better practice in this circumstance is to vacate the decision of the Court of Appeals.\u201d Id. at 290, 221 S.E.2d at 325. The same problem presents itself in this appeal from the superior court, which itself sat as an appellate court in the administrative action. Thus, \u201c[w]hile we express no opinion as to its correctness,\u201d id., we believe that it is likewise the better practice in this circumstance to vacate the decision of the superior court and remand with instructions to dismiss the contested case for mootness.\nAPPEAL DISMISSED; SUPERIOR COURT ORDER VACATED and REMANDED.\nJudges BRYANT and STROUD concur.\n. Where DHHS is statutorily required to \u201cdevelop, amend, and adopt medical coverage policy,\u201d see N.C. Gen. Stat. \u00a7 108A-54.2 (2009), DMA has promulgated program-specific clinical coverage policies which outline the clinical content of our state\u2019s Medicaid services, and DMA Clinical Coverage Policy No. 3C governs the PCS program.\n. In order to address the question of mootness, we take judicial notice of CMS\u2019s decision approving the amendment to North Carolina\u2019s State Plan, the State Plan amendments, and related publications by DMA. See Utilities Comm. v. Southern Bell Telephone Co., 289 N.C. 286, 288, 221 S.E.2d 322, 323-24 (1976) (\u201cThis Court has recognized in the past that important public documents will be judicially noticed. Staton v. R.R., 144 N.C. 135, 145, 56 S.E. 794, 797 (1907) (railroad reports to the Corporation Commission judicially noticed); 1 Stansbury\u2019s North Carolina Evidence, \u00a7 13 (Brandis Rev. 1973). Consideration of matters outside the record is especially appropriate where it would disclose that the question presented has become moot, or academic, and therefore neither of the litigants has any real interest in supplementing the record.\u201d); see also McGRX, Inc. v. Vermont, 2011 WL 31022, at *1 n.1 (D. Vt. Jan. 5, 2011) (taking judicial notice of CMS approval of State Medicaid Plan Amendment, noting that \u201c[m]any cases have recognized that a Court may take judicial notice of the rules, regulations and orders of administrative agencies issued pursuant to their delegated authority\u201d and that a \u201ccourt may take judicial notice of governmental agency determinations\u201d (internal quotation marks and citations omitted)).", "type": "majority", "author": "BEASLEY, Judge." } ], "attorneys": [ "Parker Poe Adams & Bernstein, by Renee J. Montgomery, Robb A. Leandro, and Matthew W. Wolfe, for Petitioner-Appellant.", "Attorney General Roy Cooper, by Special Deputy Attorney General Belinda A. Smith and Assistant Attorneys General Iain Stauffer and Jennifer Hillman, for Respondent-Appellee.", "John R. Rittelmeyer for Disability Rights North Carolina, Amicus Curiae.", "Ott Cone & Redpath, P.A., by Thomas E. Cone and Wendell H. Ott, for Gharlotte-Mecklenburg Hospital Authority, Duke University Medical Center, Mission Hospitals, Inc., Moses Cone Health System, North Carolina Baptist Hospital, and WakeMed Medical Center, Amici Curiae." ], "corrections": "", "head_matter": "ASSOCIATION FOR HOME AND HOSPICE CARE OF NORTH CAROLINA, INC., Petitioner v. DIVISION OF MEDICAL ASSISTANCE, NORTH CAROLINA DEPARTMENT OF HEALTH AND HUMAN SERVICES, Respondent\nNo. COA10-710\n(Filed 16 August 2011)\nAppeal and Error \u2014 mootness\u2014administrative decision \u2014 superior court review \u2014 dismissed\nIn an appeal arising from an administrative action in which petitioner challenged a new methodology for calculating coverage under the Personal Care Services (PCS) Medicaid program, the superior court\u2019s injunction and order directing that the contested case be dismissed was vacated and remanded with instructions to dismiss the contested case for mootness. The PCS Medicaid program and related coverage policy had been terminated, eliminating the effect that any determination in petitioner\u2019s contested case could have had on the controversy.\nAppeal by Petitioner from order entered 11 March 2010 by Judge Donald W. Stephens in Wake County Superior Court. Heard in the Court of Appeals 30 November 2010.\nParker Poe Adams & Bernstein, by Renee J. Montgomery, Robb A. Leandro, and Matthew W. Wolfe, for Petitioner-Appellant.\nAttorney General Roy Cooper, by Special Deputy Attorney General Belinda A. Smith and Assistant Attorneys General Iain Stauffer and Jennifer Hillman, for Respondent-Appellee.\nJohn R. Rittelmeyer for Disability Rights North Carolina, Amicus Curiae.\nOtt Cone & Redpath, P.A., by Thomas E. Cone and Wendell H. Ott, for Gharlotte-Mecklenburg Hospital Authority, Duke University Medical Center, Mission Hospitals, Inc., Moses Cone Health System, North Carolina Baptist Hospital, and WakeMed Medical Center, Amici Curiae." }, "file_name": "0522-01", "first_page_order": 532, "last_page_order": 538 }