Opinion ID: 1615376
Heading Depth: 1
Heading Rank: 4

Heading: Statutory compliance.

Text: ¶ 16. As a preliminary matter, this Court's Greene County opinion determined that the trial court had erred by finding that the GRHC trustees had authority to enter into the agreements without the approval of the Board of Supervisors. Greene County, 10 So.3d at 431. The Court viewed the agreements as nonbinding, rendering all other dispositive issues moot. Id. at 433. To the extent that CMI argues that the trial court erred by finding that Greene County complied with paragraphs 3 and 4 of the second amended final judgment pertaining to the agreements between CMI and the GRHC trustees, or that the relief sought by CMI should be the implementation of a long-term management contract, based on provisions in the agreements and incorporated into the second amended final judgment, these arguments are without merit, due to this Court's recent invalidation of the agreements in Greene County. Greene County, 10 So.3d at 433 ¶ 17. CMI also contends that the trial court erred by finding that Greene County had complied with the statutory requirements of Mississippi Code Section 41-13-15 when Greene County had offered the nursing home and hospital for long-term lease. While CMI seeks relief under the second amended final judgment and 2005 contracts, that being long-term management of the facilities, the relief is no longer available because of this Court's holding in Greene County. Notwithstanding that CMI's requested relief is now foreclosed by this Court's Greene County opinion, CMI's statutory compliance arguments survive on appeal. ¶ 18. CMI makes two statutory arguments on appeal. First, CMI argues that George Regional gave inadequate Request for Proposal (RFP) statements. Second, CMI argues that Greene County failed to comply with publication requirements. ¶ 19. The Public Health Law covers a wide variety of health issues. See Miss.Code Ann. §§ 41-1-1 to 41-115-1 (Rev.2009). Included in the title's provisions is a section concerning community hospitals within our State. See Miss.Code Ann. §§ 41-13-1 to XX-XX-XXX (Rev.2009). Chapter 13 of Title 41 provides the procedures for operating and maintaining community hospitals. Id. While many of the former statutes in this chapter are now repealed, other current provisions provide an Editor's Note following the statute. [5] The main statute at issue in this appeal is Mississippi Code Section 41-13-15 and whether the special chancellor correctly determined that Greene County complied with the statutory provisions of Section 41-13-15(7), (8), and (9). The special chancellor, in his 2008 order determined that Greene County substantially complied with Section 41-13-15. The Editor's Note provides for the liberal construction of Section 41-13-15 and states: Laws of 1985, ch. 511, §§ 1, 10, eff from and after July 1, 1985, provide as follows: SECTION 1. It is the intent and purpose of this act to clarify and expand the power of boards of trustees of community hospitals so as to allow such community hospitals to operate efficiently, to offer competitive health care services, to respond more effectively to new developments and regulatory changes in the health care area and to continue to serve and promote the health and welfare of the citizens of the State of Mississippi. This act shall be liberally construed so as to give effect to such intent and purpose. Miss.Code Ann. § 41-13-15 (emphasis added) ( See Laws 1985, Ch. 511, § 2, eff. July 1, 1985; Laws 2002, Ch. 441, § 1, eff. July 1, 2002). With the Editor's Note as guidance to this Court concerning the Legislature's intent, a liberal construction of Section 41-13-15 is appropriate. The special chancellor's determination that Greene County substantially complied with the statute is more accurately described as in compliance given a liberal construction of the statute.
¶ 20. This Court has reviewed the arguments asserted by CMI, and we find that they are without merit. CMI asserts that George Regional failed to respond properly to certain Requests For Proposals (RFPs) advertised by Greene County, thus, implying that Greene County deviated from the RFP process by failing to follow the procedures provided in Miss. Code Section 41-13-15 and accepting George Regional's responses. Greene County maintains that CMI failed to address this issue before the trial court, thus, the trial court never had an opportunity to rule on the issue. ¶ 21. A review of the transcript of the January 23, 2008, hearing reveals that CMI generally argued that George Regional had failed to respond adequately to the RFPs propounded by Greene County. However, CMI did not argue the same issues at the January 23, 2008, hearing that it expressed in detail in its brief before this Court on appellate review. At the hearing, CMI argued, in part: By [Counsel for CMI]: [I]t's obvious if you look at the RFP as published to the public and then you look at instances in which they accepted terms that were not considered  that were not put forth in the RFP. You can't do that. I mean for obvious reasons, you know and that law applies across the board in county government. . . . So they're constrained by the terms of the RFP. So they did not therefore comply with 41-13-15. In its brief, CMI cited four requests and four responses given by George Regional, claiming that the responses deviated from the RFP process. ¶ 22. Furthermore, when a party makes an objection on specific grounds, it is considered a waiver regarding all other grounds. Copeland v. Copeland, 904 So.2d 1066, 1073 (Miss.2004) (citing Burns v. State, 729 So.2d 203, 219 (Miss.1998)). An issue must first be presented to the trial court before it is raised to the appellate court. Wilburn v. Wilburn, 991 So.2d 1185, 1191 (Miss.2008). This Court has held that issues that are not raised at the trial court and which the trial court had no opportunity to rule on cannot be raised for the first time in the appellate court. Fitch v. Valentine, 959 So.2d 1012, 1021 (Miss.2007). ¶ 23. Notwithstanding the fact that CMI failed to make a specific argument concerning the RFPs at the hearing, we find that after a review of Greene County's RFPs and a review of the answers provided by George Regional, the issue is without merit. CMI claimed that at least four of the RFPs posed by Greene County had inadequate responses by George Regional. In the special chancellor's June 11, 2008, memorandum opinion, which again was not incorporated by reference into the 2008 judgment, the trial court stated: Second, GRHC and CMI argue that the request for proposals (RFP) contains certain provisions which cannot be changed after issuance. Without providing specific reference to the deviations, GRHC and CMI argue that the proposal from George County Hospital contained items not listed in the RFP. The Court does not find any deviation in the proposal as compared to the RFP that would require the Court to grant the relief requested by GRHC and CMI. We agree. CMI's assertions that George Regional failed to respond to the RFPs amounted to nothing more than a matter of tedious semantics. Accordingly, the trial court did not err by finding that Greene County complied with the RFP requirements of Section 41-13-15.
¶ 24. On the second issue, failure to comply with publication requirements, we find that the trial court, given the liberal construction intended by the Legislature, correctly found that Greene County complied with the statutory requirements of Mississippi Code Section 41-13-15(7) by entering into a lease with George Regional. See Miss.Code Ann. § 41-13-15. CMI argues a myriad of issues pertaining to the publication and execution of the lease between Greene County and George Regional, however, CMI's arguments are without merit, especially given the Legislature's intent to liberally construe the statute. [6] ¶ 25. Mississippi Code Section 41-13-15(7), (8), and (9) provides the procedure for lease of a community hospital. The applicable portions of Section 41-13-15 state: (7)(a) Except as provided for in subsection (11) of this section, owners may lease all or part of the property, real or personal, comprising a community hospital, including any related facilities, wherever located, and/or assets of such community hospital, to any individual, partnership or corporation, whether operating on a nonprofit basis or on a profit basis, or to the board of trustees of such community hospital or any other owner or board of trustees, subject to the applicable provisions of subsections (8), (9) and (10) of this section. . . . Such lease shall be subject to the express approval of the board of trustees of the community hospital, except in the case where the board of trustees of the community hospital will be the lessee. . . . If the owner wishes to lease a community hospital without an option to sell it and the approval of the board of trustees of the community hospital is required but is not given within thirty (30) days of the request for its approval by the owner, then the owner may enter such lease as described herein on the following conditions: A resolution by the owner describing its intention to enter such lease shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in the county or city, as the case may be, or if none be so published, in a newspaper having a general circulation therein. The first publication of such notice shall be made not less than twenty-one (21) days prior to the date fixed in such resolution for the lease of the community hospital and the last publication shall be made not more than seven (7) days prior to such date. If, on or prior to the date fixed in such resolution for the lease of the community hospital, there shall be filed with the clerk of the owner a petition signed by twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified voters of such owner, requesting that an election be called and held on the question of the lease of the community hospital, then it shall be the duty of the owner to call and provide for the holding of an election as petitioned for. In such case, no such lease shall be entered into unless authorized by the affirmative vote of the majority of the qualified voters of such owner who vote on the proposition at such election. Notice of such election shall be given by publication in like manner as hereinabove provided for the publication of the initial resolution. Such election shall be conducted and the return thereof made, canvassed and declared as nearly as may be in like manner as is now or may hereafter be provided by law in the case of general elections in such owner. If, on or prior to the date fixed in the owner's resolution for the lease of the community hospital, no such petition as described above is filed with the clerk of the owner, then the owner may proceed with the lease subject to the other requirements of this section. Subject to the above conditions, the lease agreement shall be upon such terms and conditions as may be agreed upon and may make such provision for transfers of tangible and intangible personal property and operating funds and/or for the assumption of liabilities of the community hospital and for such lease payments, all as may be deemed appropriate by the owners. . . . . (8) Whenever any owner decides that it may be in its best interests to sell or lease a community hospital as provided for under subsection (7) of this section, the owner shall first contract with a certified public accounting firm, a law firm or competent professional health care or management consultants to review the current operating condition of the community hospital. The review shall consist of, at minimum, the following: (a) A review of the community's inpatient facility needs based on current workload, historical trends and projections, based on demographic data, of future needs. (b) A review of the competitive market for services, including other hospitals which serve the same area, the services provided and the market perception of the competitive hospitals. (c) A review of the hospital's strengths relative to the competition and its capacity to compete in light of projected trends and competition. (d) An analysis of the hospital's options, including service mix and pricing strategies. If the study concludes that a sale or lease should occur, the study shall include an analysis of which option would be best for the community and how much revenues should be derived from the lease or sale. (9) After the review and analysis under subsection (8) of this section, an owner may choose to sell or lease the community hospital. If an owner chooses to sell such hospital or lease the hospital with an option to sell it, the owner shall follow the procedure specified in subsection (10) of this section. If an owner chooses to lease the hospital without an option to sell it, it shall first spread upon its minutes why such a lease is in the best interests of the persons living in the area served by the facility to be leased, and it shall make public any and all findings and recommendations made in the review required under proposals for the lease, which shall state clearly the minimum required terms of all respondents and the evaluation process that will be used when the owner reviews the proposals. The owner shall lease to the respondent submitting the highest and best proposal. In no case may the owner deviate from the process provided for in the request for proposals. Miss.Code Ann. § 41-13-15 (Rev.2009) (emphasis added). ¶ 26. Our duty is to carefully review statutory language and apply its most reasonable interpretation and meaning to the facts of a particular case. Pope v. Brock, 912 So.2d 935, 937 (Miss.2005). [W]here statute is plain and unambiguous, there is no room for construction. Kerr-McGee Chem. Corp. v. Buelow, 670 So.2d 12, 17 (Miss.1995) (citing Clark v. State ex rel. Miss. State Med. Ass'n, 381 So.2d 1046 (Miss.1980)). When construing the meaning of a statute, we must look at the words of the statute. Adams v. Baptist Mem'l Hosp.-Desoto, Inc., 965 So.2d 652, 656 (Miss.2007) (quoting Pinkton v. State, 481 So.2d 306, 309 (Miss. 1985)). ¶ 27. The statutory language of Section 41-13-15(7)(a) provides that an owner may lease a community hospital subject to the applicable subsections (8), (9), or (10). Miss.Code Ann. § 41-13-15(7) (Rev.2009). However, if the owner decides to lease the community hospital without an option to sell, then approval of the board of trustees is required. Miss.Code Ann. § 41-13-15(7). Should the board of trustees not give approval within thirty days of the request for approval by the owner, then the owner may enter such lease upon certain conditions. Miss.Code Ann. § 41-13-15(7). Those conditions include publication of the lease for three weeks. Miss. Code Ann. § 41-13-15(7). However, if a petition of the requisite number of qualified voters is filed with the clerk requesting an election, then, the owner has a duty to call and provide for an election. Miss. Code Ann. § 41-13-15(7). In such case, no such lease shall be entered into unless authorized by the affirmative vote of the majority of the qualified voters. . . . Miss. Code Ann. § 41-13-15(7). If no petition is filed, then the owner can proceed with the lease subject to the requirements of the section. Miss.Code Ann. § 41-13-15(7). ¶ 28. It is undisputed that Greene County and George Regional entered into a signed lease agreement on October 22, 2007. The lease was to go into effect on January 1, 2008, and the management of the hospital was to change from CMI to George Regional. Again, CMI presents a number of instances where Greene County allegedly failed to comply with the statute. ¶ 29. Greene County sent out a list of RFPs in order to solicit responses for the operation of the facility. Pursuant to Section 41-13-15(8), Greene County had a certified accounting firm review the operating condition of the GRHC. While a point of contention, the chancellor determined that Greene County provided notice of its intention to lease the facility to the President of the GRHC Board of Trustees. See Miss.Code Ann. § 41-13-15(7)(a) (Rev. 2009). While argued by CMI as a prerequisite requirement, there is no statutory requirement that a representative of Greene County appear before the GRHC trustees and explain the proposed lease. However, the GRHC trustees did not provide approval of the lease within thirty days. Therefore, Greene County passed a resolution describing its intention to enter such lease; to make the lease effective as of January 1, 2008; and published it once a week for at least three consecutive weeks in a county newspaper, The Greene County Herald. [7] However, prior to December 31, 2007, a petition was filed with the Greene County Circuit Clerk with the requisite number of signatures of Greene County qualified voters. The petition requested an election to resolve the issue of who should lease the community hospital. In accordance with the statute and because of the petition, Greene County called and held an election on the leasing of the facility. The election was held on March 25, 2008, and the voters of Greene County approved the lease. A majority of citizens voted to authorize Greene County to enter the proposed lease of the facility. ¶ 30. After a review of the record, this Court finds that the chancellor's findings were not manifestly wrong, clearly erroneous, nor was an erroneous legal standard applied. The special chancellor's interpretation and application of the law was correct. Given the Legislature's decision to liberally construe many of the Title 41, Chapter 13 statutes, including Section 41-13-15, we cannot say that the special chancellor erred by finding that Greene County complied with the provisions of Section 41-13-15. Therefore, on the issue of statutory compliance, this Court affirms the trial court's determination that Greene County complied with Section 41-13-15.