ST. JOSEPH’S HOSPITAL OF BUCKHANNON, INC., Petitioner, v. STONEWALL JACKSON MEMORIAL HOSPITAL CO., and WEST VIRGINIA HEALTH CARE AUTHORITY, Respondents.
No. 24-347
IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
November 13, 2025
September 2025 Term
SYLLABUS BY THE COURT
- “Interpreting a statute or an administrative rule or regulation presents a purely legal question subject to de novo review.” Syl. Pt. 1, Appalachian Power Co. v. State Tax Dep’t of W. Va., 195 W. Va. 573, 466 S.E.2d 424 (1995).
- “The judiciary is the final authority on issues of statutory construction, and we are obliged to reject administrative constructions that are contrary to the clear language of a statute.” Syl. Pt. 5, CNG Transmission Corp. v. Craig, 211 W. Va. 170, 564 S.E.2d 167 (2002).
- “The doctrine of stare decisis does not normally apply to administrative decisions.” Syl. Pt. 5, Chesapeake & Potomac Tel. Co. of W. Va. v. Pub. Serv. Comm’n of W. Va., 171 W. Va. 494, 300 S.E.2d 607 (1982).
- “It is fundamental law that the Legislature may delegate to an administrative agency the power to make rules and regulations to implement the statute under which the agency functions. In exercising that power, however, an administrative agency may not issue a regulation which is inconsistent with, or which alters or limits its statutory authority.” Syl. Pt. 3, Rowe v. W. Va. Dep’t of Corr., 170 W. Va. 230, 292 S.E.2d 650 (1982).
- “The primary object in construing a statute is to ascertain and give effect to the intent of the Legislature.” Syl. Pt. 1, Smith v. State Workmen’s Comp. Com’r, 159 W. Va. 108, 219 S.E.2d 361 (1975).
- “A statutory provision which is clear and unambiguous and plainly expresses the legislative intent will not be interpreted by the courts but will be given full force and effect.” Syl. Pt. 2, State v. Epperly, 135 W. Va. 877, 65 S.E.2d 488 (1951).
- In
West Virginia Code section 16-2D-8(a)(1) (2023) , the phrase “construction . . . of a health care facility” includes the erection or building of a structure for offering or providing health services.
Albert F. Sebok, Esq. Alaina N. Crislip, Esq. Neil C. Brown, Esq. Colton Koontz, Esq. Jackson Kelly PLLC Charleston, West Virginia Counsel for Petitioner St. Joseph’s Hospital of Buckhannon, Inc.
Thomas G. Casto, Esq. Webster J. Arceneaux, III, Esq. Hannah K.W. Petros, Esq. Lewis Gianola PLLC Charleston, West Virginia Counsel for Respondent Stonewall Jackson Memorial Hospital Co.
John B. McCuskey, Esq. Attorney General Michael R. Williams, Esq. Solicitor General Frankie A. Dame, Esq. Assistant Solicitor General Charleston, West Virginia, Counsel for Respondent West Virginia Health Care Authority
The respondent, Stonewall Jackson Memorial Hospital Company (“Stonewall”), has plans to construct a new hospital complex and then move its existing operations to that new facility. The petitioner, St. Joseph’s Hospital of Buckhannon, Inc. (“St. Joseph’s”), asserts that Stonewall is required to obtain a certificate of need from the respondent West Virginia Health Care Authority (“the Authority”) because West Virginia law mandates that healthcare providers obtain such a certificate for “[t]he construction . . . of a health care facility[.]”
Stonewall filed an application with the Authority asking whether it needed a certificate of need for its construction project. On July 12, 2023, the Authority issued a final decision finding that no certificate of need was required. The Authority reasoned that, despite Stonewall’s proposal to construct a new health care facility, the Authority had an unwritten guideline that a certificate of need is unnecessary if a healthcare provider is merely “relocating” from an existing building to a newly constructed one. The Intermediate Court of Appeals of West Virginia (“ICA”) affirmed the Authority’s decision.
As set forth below, we find that both the Authority and the ICA erred in their interpretation of West Virginia’s certificate of need statutes and that their respective decisions must be reversed. Under the clear and unambiguous language of Section 8(a)(1), the Legislature has mandated that health care entities must seek a certificate of need for the
I. Factual and Procedural Background
St. Joseph’s operates a twenty-five-bed hospital in rural Buckhannon, West Virginia. Since 2014, St. Joseph’s has been designated as a “critical access hospital” or “CAH” by the federal Centers for Medicare & Medicaid Services. The CAH designation permits St. Joseph’s to receive a higher reimbursement rate for Medicare and Medicaid patients, which in turn allows it to maintain financial stability.1 For St. Joseph’s to preserve its CAH status, it must operate its rural facility further than fifteen mountainous miles from other hospitals.2
The site on which Stonewall proposes to build its new hospital is only about twelve mountainous miles away from the hospital operated by St. Joseph’s. In 2021, Stonewall applied to the Authority to obtain a certificate of need for its plans to construct the new facility. St. Joseph’s intervened and offered evidence that, if Stonewall is permitted to construct the new hospital facility less than fifteen mountainous miles from St. Joseph’s, then St. Joseph’s will lose its CAH status, and its future may be financially imperiled.
Based upon the parties’ evidence, the Authority issued a decision on June 13, 2022, denying Stonewall’s application for a certificate of need. The Authority found that Stonewall’s construction of a new facility was not a “superior alternative,” as required by certificate-of-need laws, because it would cause St. Joseph’s to lose its CAH status to the significant detriment of St. Joseph’s and the citizens that it serves. See generally,
However, in March 2023, while Stonewall’s appeal of the 2022 certificate-of-need-denial decision was still pending before the ICA, the West Virginia Legislature adopted amendments to the statutes governing the certificate-of-need process. In one of those 2023 amendments, the Legislature altered the definition of the phrase “capital expenditure” that is used in several certificate-of-need statutes. Specifically, prior to the 2023 amendments, a certificate of need was required for certain specified capital expenditures made by or on behalf of a health care facility which exceeded $5 million; after the 2023 amendments, a certificate of need was required only for certain specified capital expenditures exceeding $100 million. See
St. Joseph’s again intervened and opposed Stonewall’s RDOR, arguing to the Authority that Stonewall’s proposal to construct a new hospital facility still required a certificate of need. St. Joseph’s pointed out that Section 8(a)(1) mandates a certificate of need for “[t]he construction, development, acquisition, or other establishment of a health care facility[.]”
On July 12, 2023 (fifteen days after the ICA affirmed the Authority’s 2022 decision denying Stonewall’s application for a certificate of need), the Authority entered its final decision in favor of Stonewall’s RDOR application, finding Stonewall did not need to apply for a certificate of need. The Authority characterized Stonewall’s construction of a new hospital as nothing more than “the renovation, replacement and relocation of Stonewall from its current location to the proposed new location 4 miles away.” In its RDOR decision, the Authority stated that it had an unwritten guideline for interpreting certificate-of-need statutes, such that it would not subject the “complete relocation of existing health care facilities within the same service area to [certificate-of-need] review
[T]he proposal by Stonewall . . . for the complete relocation of the hospital to a new location in its service area is NOT subject to Certificate of Need review because their project is a replacement and relocation of the same services, in the same service area, and does not exceed the [$100 million] minimum capital expenditure.
St. Joseph’s appealed the July 2023 RDOR decision to the ICA, reiterating its argument that the plain language of Section 8(a)(1) requires a healthcare provider to obtain a certificate of need for the “construction . . . of a health care facility” irrespective of the $100 million capital expenditure limit. St. Joseph’s Hosp. of Buckhannon, Inc. v. Stonewall Jackson Mem’l Hosp. Co., 250 W. Va. 378, 385, 903 S.E.2d 247, 254 (Ct. App. 2024). While the ICA agreed that “Stonewall clearly plans to construct . . . a health care facility,” the court found that Section 8(a)(1) was “ambiguous when applied to a relocation plan like Stonewall’s.” 250 W. Va. at 386, 903 S.E.2d at 255. While Section 8(a)(1) uses the disjunctive “or” and requires a certificate of need for the “construction, development, acquisition, or other establishment of a health care facility” (emphasis added), the ICA found the statute essentially applied to the construction, development, and establishment of a healthcare facility. 250 W. Va. at 386, 903 S.E.2d at 255. Moreover, the ICA
St. Joseph’s now appeals the ICA’s opinion affirming the Authority’s RDOR final decision.
II. Standard of Review
In its appeal, St. Joseph’s asks this Court to interpret Section 8(a)(1). “Interpreting a statute or an administrative rule or regulation presents a purely legal question subject to de novo review.” Syl. Pt. 1, Appalachian Power Co. v. State Tax Dep’t of W. Va., 195 W. Va. 573, 466 S.E.2d 424 (1995). “The judiciary is the final authority on issues of statutory construction, and we are obliged to reject administrative constructions that are contrary to the clear language of a statute.” Syl. Pt. 5, CNG Transmission Corp. v. Craig, 211 W. Va. 170, 564 S.E.2d 167 (2002).
Moreover, because the appeal challenges an agency decision in a contested case that is subject to the State Administrative Procedures Act,
The court may affirm the order or decision of the agency or remand the case for further proceedings. It shall reverse, vacate, or modify the order or decision of the agency if the substantial rights of the petitioner or petitioners have been prejudiced because the administrative findings, inferences, conclusions, decision, or order are:
(1) In violation of constitutional or statutory provisions;
(2) In excess of the statutory authority or jurisdiction of the agency;
(3) Made upon unlawful procedures;
(4) Affected by other error of law;
(5) Clearly wrong in view of the reliable, probative, and substantial evidence on the whole record; or
(6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.
III. Discussion
West Virginia Code section 16-2D-8 contains numerous subsections listing a variety of proposed health-related services that require a certificate of need. St. Joseph’s central argument focuses on one such subsection, Section 8(a)(1), which provides:
(a) . . . [T]he following proposed health services may not be acquired, offered, or developed within this state except upon approval of and receipt of a certificate of need as provided by this article:
(1) The construction, development, acquisition, or other establishment of a health care facility[.]5
On appeal, St. Joseph’s reasserts that Section 8(a)(1) is unambiguous and clearly requires that a provider obtain a certificate of need from the Authority for the construction of a health care facility, such as a new hospital. As for the term “construction,” St. Joseph’s argues that this Court has already afforded that term its ordinary, dictionary meaning:
In Webster’s Third New International Dictionary at 489, “construction” is defined as “the act of putting parts together to form a complete integrated object.” In II(C) The Oxford English Dictionary at 880 (1970), “construction” is stated as “[t]he action of framing, devising, or forming, by putting together of parts; erection, building.”
Eggleston v. W. Va. Dep’t of Highways, 189 W. Va. 230, 234, 429 S.E.2d 636, 640 (1993). Regarding the phrase “health care facility,”
Before this Court, the Authority has altered its position, and it now joins St. Joseph’s in arguing that its own final RDOR decision interpreting Section 8(a)(1), as well as the opinion of the ICA, should be reversed. In the ICA proceedings, the Authority argued that its unwritten guideline was a fair interpretation of Section 8(a)(1). But to this Court, the Authority admits that it erred, stating that while its unwritten guideline might have reflected a good-faith effort to reasonably apply the certificate-of-need statutes, that guideline does not have an appropriate statutory basis. Moreover, the Authority contends that the ICA ignored or misapplied the syntax of Section 8(a)(1) to interpret the word “establishment” and insert a “new entity” requirement into the statute. The Authority
Stonewall, however, continues to maintain that its new hospital construction project does not require a certificate of need, arguing that Section 8(a)(1) only applies to a newly established health care entity constructing a building, and Stonewall is a long-established health care entity. Furthermore, Stonewall relies upon the Authority’s unwritten guideline interpreting Section 8(a)(1) and argues in its brief that “[t]he complete relocation of existing health care facilities has never been subject to certificate of need review unless the relocation would cost more than the [capital] expenditure minimum.” Stonewall complains that it is unfair that the Authority has changed its position, insists that this Court must give deference and “statutory stare decisis” effect to the Authority’s past administrative decisions applying the unwritten guideline, and asks that we affirm the ICA’s and the Authority’s decisions below.
We reject Stonewall’s position. It is long-established law in this State that “[t]he doctrine of stare decisis does not normally apply to administrative decisions.” Syl. Pt. 5, Chesapeake & Potomac Tel. Co. of W. Va. v. Pub. Serv. Comm’n of W. Va., 171 W. Va. 494, 300 S.E.2d 607 (1982); accord Cent. W. Va. Refuse, Inc. v. Pub. Serv. Comm’n of W. Va., 190 W. Va. 416, 420, 438 S.E.2d 596, 600 (1993) (“[T]he doctrine of stare decisis does not generally apply to regulatory decisions by administrative agencies.”). We
[i]t is fundamental law that the Legislature may delegate to an administrative agency the power to make rules and regulations to implement the statute under which the agency functions. In exercising that power, however, an administrative agency may not issue a regulation which is inconsistent with, or which alters or limits its statutory authority.
Syl. Pt. 3, Rowe v. W. Va. Dep’t of Corr., 170 W. Va. 230, 292 S.E.2d 650 (1982). Hence, the Authority is free to abandon its earlier unwritten guideline for interpreting the certificate-of-need statutes, particularly where, as here, the Authority becomes cognizant that its prior interpretation is inconsistent with or limits its statutory authority, and “goes beyond the meaning that the statute can bear.” In re Snuffer, 193 W. Va. 412, 417, 456 S.E.2d 493, 498 (1995) (Cleckley, J., concurring) (citing Pittston Coal Grp. v. Sebben, 488 U.S. 105, 113 (1988) (“In our view, the statute simply will not bear the meaning the [agency] has adopted.”)).7
Moreover, in cases such as this, where the Legislature has chosen not to define a term within a statutory scheme, we follow our longstanding rule that “[u]ndefined
We find that the meaning of the phrase “construction . . . of a health care facility,” as that phrase is used in Section 8(a)(1), is clear and unambiguous. Regarding the word “construction,” we have already noted that the common, ordinary meaning of the word is “[t]he action of framing, devising, or forming, by putting together of parts; erection, building.” Eggleston, 189 W. Va. at 234, 429 S.E.2d at 640 (quoting Oxford English Dictionary (2d ed. 1989)). While the Legislature has not defined “construction” within the certificate-of-need statutes,8 it has done so within statutes regulating bidding on
“Construction” means the act, trade or process of building, erecting, constructing, adding, repairing, remodeling, rehabilitating, reconstructing, altering, converting, improving, expanding or demolishing of a building, structure, facility, road or highway, and includes the planning, designing and financing of a specific construction project.
Hence, in Section 8(a)(1), the common, ordinary, and accepted meaning for the term “construction” includes activities such as the erection, building, alteration, remodeling, reconstruction, improvement, renovation, extension, or modification of a structure.
The other term at issue in Section 8(a)(1), “health care facility,” is defined in the certificate-of-need statutes as “a publicly or privately owned facility . . . that offers or provides health services[.]”
Given the plain meaning of the relevant terms, and in the context of this case, we hold that in
In the instant case, it is undisputed that Stonewall’s plans include the erection of a new hospital building for the provision of health services for its patients. Section 8(a)(1), by its clear and unambiguous terms, required Stonewall to seek a certificate of need from the Authority for its new hospital project. Both the Authority and the ICA erred by finding Section 8(a)(1) to be ambiguous and by applying the Authority’s unsupportable, unwritten guideline that the relocation of services from an old building to a newly erected one is exempt from the certificate-of-need requirement. Stated simply, on this record, the Authority exceeded its statutory authority in its RDOR assessment that Stonewall’s new hospital construction project did not require certificate-of-need review.
IV. Conclusion
Accordingly, we reverse the ICA’s opinion and reverse the Authority’s July 12, 2023, final decision. The case is remanded to the Authority for proceedings consistent with this opinion.
Reversed and remanded.
