Lakewood Nursing and Rehabilitation Center, LLC v. Department of Public Health
158 N.E.3d 229
Ill.2019Background:
- Lakewood issued an involuntary discharge notice to resident Helen Sauvageau (nonpayment); Sauvageau requested a hearing (Nov 1, 2013) and applied for Medicaid (Nov 2, 2013).
- Medicaid was denied (Jan 13, 2014); Lakewood asked the Illinois Department of Public Health to schedule the hearing (Jan 15); prehearing Feb 10; hearing held Mar 24, 2014.
- ALJ recommended approval of the discharge; the Department issued its final administrative decision May 6, 2014 approving the discharge to take effect 30 days after the final ruling; Sauvageau left May 29, 2014.
- Lakewood sought administrative review, arguing the Nursing Home Care Act (210 ILCS 45/3-411) requires hearings within 10 days and decisions within 14 days, and that the Department exceeded those limits.
- The circuit court held the time limits are directory; the appellate court reversed (holding the limits mandatory and the Department lost authority); the Illinois Supreme Court granted review.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 210 ILCS 45/3-411's 10-day hearing and 14-day decision deadlines are mandatory (invalidating hearings/decisions after the time) or directory. | "Not later than 10 days" is negative language requiring a mandatory rule; missing the deadline deprives Department of authority and protects facility property/contract interests. | Section 3-411 lacks prohibitory language or specified consequences; time limits are directory to preserve residents' due-process rights and to harmonize with other Act/federal timelines. | The time limits are directory. Section 3-411 contains no statutory consequence or prohibition for noncompliance and a strict mandatory rule could harm residents' due process; Dept. retained authority. Appellate court reversed; circuit court affirmed. |
Key Cases Cited
- People v. Robinson, 217 Ill. 2d 43 (2005) (framework for mandatory vs. directory statutory commands)
- People v. Jennings, 3 Ill. 2d 125 (1954) (procedural statutes mandatory only when accompanied by negative words or specified consequences)
- In re M.I., 2013 IL 113776 (2013) (reiterating directory/mandatory analysis)
- Goldberg v. Kelly, 397 U.S. 254 (1970) (due process requires opportunity to be heard at a meaningful time and in a meaningful manner)
- Frances House, Inc. v. Dep’t of Public Health, 269 Ill. App. 3d 426 (1995) (appellate case treating similar phrasing as negative language, discussed and limited by the Court)