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File #: 25-1416    Version: 1 Name: HCA Settlement Agreement
Type: Agreements/Contracts Status: Passed
File created: 3/12/2025 In control: City Commission
On agenda: 3/19/2025 Final action: 3/19/2025
Title: MOTION TO APPROVE SETTLEMENT AGREEMENT WITH SOUTH BROWARD HOSPITAL DISTRICT D/B/A MEMORIAL HEALTHCARE SYSTEM, AND DAVIE MEDICAL CENTER LLC D/B/A HCA FLORIDA UNIVERSITY HOSPITAL FOR LITIGATION REGARDING CITY COMMISSION ORDER 2023-01 (FREESTANDING EMERGENCY DEPARTMENT SITE PLAN). 
Sponsors: City Attorney Group
Attachments: 1. 1. Settlement Agreement - Final 3-10-25

Title

MOTION TO APPROVE SETTLEMENT AGREEMENT WITH SOUTH BROWARD HOSPITAL DISTRICT D/B/A MEMORIAL HEALTHCARE SYSTEM, AND DAVIE MEDICAL CENTER LLC D/B/A HCA FLORIDA UNIVERSITY HOSPITAL FOR LITIGATION REGARDING CITY COMMISSION ORDER 2023-01 (FREESTANDING EMERGENCY DEPARTMENT SITE PLAN). 

 

Summary Explanation and Background

 

SUMMARY EXPLANATION AND BACKGROUND:

1.  The City Commission, after conducting a required quasi-judicial hearing, rendered City Commission Order 2023-01 (“Commission Order”) on June 15, 2023, which approved a site plan application for a Freestanding Emergency Department to be constructed by Davie Medical Center, LLC d/b/a HCA Florida University Hospital (“HCA Florida University Hospital”).

 

2.  On July 12, 2023, the South Florida Hospital District d/b/a Memorial Healthcare System (“Memorial”) commenced a first-tier certiorari proceeding relating to the Commission Order, against the City and HCA Florida University Hospital in the Seventeenth Judicial Circuit in and for Broward County Florida, Case No. CACE-23-015622 (the “First-Tier Certiorari Proceeding”). 

 

3.  On July 12, 2023, Memorial also commenced a proceeding pursuant to § 163.3215(3), Fla. Stat. and relating to the Commission Order, against the City and HCA Florida University Hospital in the Seventeenth Judicial Circuit in and for Broward County Florida, Case No. CACE-23-015608 (the “Consistency Challenge”). 

 

4.  On May 16, 2024, the Broward County Circuit Court entered an order denying Memorial’s Petition for Writ of Certiorari.  On August 7, 2024, the Fourth District Court of Appeal denied Memorial’s Petition for Writ of Certiorari wherein Memorial sought appellate review of the circuit court’s order denying certiorari.  As a result, the First-Tier Certiorari Proceeding is now concluded. 

 

5.  The Consistency Challenge remains pending.  In January, 2024, the trial court granted the City’s Motion to Abate this case until the parties had concluded a Chapter 164 conflict resolution process.  Memorial filed a Petition for Writ of Certiorari to the Fourth District Court of Appeal seeking review of that order.  On August 20, 2024, the Fourth District Court of Appeal denied Memorial’s Petition for Writ of Certiorari.  Since that order, nothing has occurred in this litigation.  

 

6.  Late last year, the Mayor initiated dialogue with the interim Chief Executive Officer for Memorial, Shane Strum, and as a result counsel for all of the parties have engaged in settlement discussions that has resulted in the proposed Settlement Agreement and Joint Stipulation of Settlement and Dismissal with Prejudice of the Consistency Challenge.  The terms of the settlement are:

 

                     The Consistency Challenge will be dismissed with prejudice.

                     All parties will bear their own attorney’s fees and costs

                     Memorial releases the City and HCA Florida University Hospital for any claims it may have under the Commission Order, the First-Tier Certiorari Proceeding and the Consistency Challenge; and the City and HCA Florida University Hospital release Memorial for any claims they may have under the Commission Order, the First-Tier Certiorari Proceeding and the Consistency Challenge.

                     The release will not affect the City’s rights to enforce Commission Order 2023-01 against HCA Florida University Hospital.  

 

7.  Counsel for all other parties have advised that their clients are agreeable to the settlement terms and the attached documents

 

 

Financial Impact

FINANCIAL IMPACT DETAIL:

 

a)   Initial Cost: None.

b)   Amount budgeted for this item in Account No: Not Applicable.

c)   Source of funding for difference, if not fully budgeted: Not Applicable.

d)   5 year projection of the operational cost of the project Not Applicable.

e)   Detail of additional staff requirements: Not Applicable.

 

 

FEASIBILITY REVIEW:

 

A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts.  This analysis is to determine the financial effectiveness of function sourcing services.

 

a)   Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service?  Not Applicable.

b)   If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.