Reynolds v. Ohio State Bd. of Examiners, Unpublished Decision (9-18-2003)
Reynolds v. Ohio State Bd. of Examiners, Unpublished Decision (9-18-2003)
Opinion of the Court
OPINION
{¶ 1} Appellant, Darl E. Reynolds, appeals from a January 22, 2003 decision of the Franklin County Court of Common Pleas upholding a decision of appellee, the Ohio State Board of Examiners of Nursing Home Administrators ("the board of examiners"), revoking appellant's license.{¶ 2} On June 25, 1999, appellant was convicted of Medicaid fraud, a violation of R.C.
Conviction for Medicaid Fraud that occurred during your service as the administrator of the nursing home constitutes being guilty of fraud or deceit in the practice of nursing home administration, a violation of Section
{¶ 3} An administrative hearing was held December 17, 2001. On January 17, 2002, after reviewing the evidence and testimony, the hearing examiner issued a recommendation including findings of fact and conclusions of law. The hearing examiner ruled that appellant was guilty of fraud in the practice of nursing home administration and recommended that appellant's license as a nursing home administrator be revoked. On June 6, 2002, the board of examiners approved the recommendation of the hearing examiner and revoked appellant's license to practice nursing home administration in Ohio. Appellant filed an appeal under R.C.
{¶ 4} The trial court reviewed the admissibility of the Medicaid fraud conviction, the sufficiency of evidence, objections to admission of evidence, and appellee's failure to consider and rule on objections. On December 16, 2002, the trial court affirmed the board of examiners' order to revoke appellant's license, finding that the decision of the board of examiners was supported by reliable, probative, and substantial evidence and was in accordance with law.
{¶ 5} This appeal followed, with appellant bringing the following nine assignments of error:
[I.] The Trial Court Erred In Failing To Rule Board Of Examiners Of Nursing Home Administrators Erred By Failing To Consider And Rule On The Timely Filed Objections To The Hearing Officer's Report Made Pursuant To Section
[II.] The Trial Court Erred In Ruling The Board Of Examiners Of Nursing Home Administrators Did Not Err And Abuse Their Discretion In Admitting, Considering And Adopting The Magistrate's Ruling Admitting Respondent-appellant's No Contest Plea To A Misdemeanor Theft Offense, And Certified Copies Of Plea, Sentence And An Indictment Contrary To The Provisions Of Criminal Rule 11(B)(2), Rule 410, Ohio Rules Of Evidence And Section
[III.] The Trial Court Erred In Ruling The Administrative Hearing Officer Did Not Err And Abuse His Discretion In Admitting A Transcript Of Colloquy Between Judge Crawford And Respondent-appellant At No Contest Plea.
[IV.] The Trial Court Erred In Ruling The Board Of Examiners Of Nursing Home Administrators Did Not Err In Adopting The Administrative Hearing Officer's Report, Admitting Cost Reports Of Long Term Lodging And Finding That Such Report Supported Revocation Of License.
[V.] The Trial Court Erred In Ruling The Board Of Examiners Of Nursing Home Administrators Did Not Err As A Matter Of Law In Adopting The Administrative Hearing Officer's Recommendation That Darl Reynolds, Was Guilty Of Fraud And Deceit In The Practice Of Nursing Home Administration, Said Finding Not Being Supported By Reliable, Substantive Or Probative Evidence.
[VI.] The Order Revoking Appellant's Nursing Home Administrator's License Based On Evidence Of One Act Of Medicaid Fraud, A Misdemeanor Of The First Degree, Concerning A Theft Of Less Than $500.00 As Provided In Section
[VII.] The Trial Court Erred In Sustaining The Board Of Examiners Of Nursing Home Administrators' Adoption Of The Administrative Hearing Officer's Recommendation Finding States Ex. 8, Cost Reports, If Properly Admitted, Standing Alone Offer Proof Of Medicaid Fraud Since It Is Impossible To Determine, Based On The No Contest Plea, Exactly What Report Or What Amount Constituted A Theft Or Why.
[VIII.] The Trial Court And The Board Of Examiners Of Nursing Home Administrators' Ruling Revoking Appellant's License Is Contrary To Law.
[IX.] The Trial Court's Ruling And The Order Of The Board Of Examiners Of Nursing Home Administrators Is Not Supported By Reliable, Substantial And Probative Evidence.
{¶ 6} In an appeal brought under R.C.
{¶ 7} In contrast, upon further appeal, the appellate court is only to determine if the trial court abused its discretion in finding that the board of examiners' order is supported by reliable, probative, and substantial evidence and is in accordance with law. "The term `abuse of discretion' connotes more than an error of law or judgment; it implies that the court's attitude is unreasonable, arbitrary or unconscionable." Blakemore v. Blakemore (1983),
{¶ 8} In appellant's first assignment of error, appellant argues that the trial court erred by failing to rule that the board of examiners erred by failing to consider and rule on the objections to the hearing officer's report filed by appellant pursuant to R.C.
{¶ 9} R.C.
* * * The party may, within ten days of receipt of such copy of such written report and recommendation, file with the agency written objections to the report and recommendation, which objections shall be considered by the agency before approving, modifying, or disapproving the recommendation.
{¶ 10} The June 6, 2002 board of examiners meeting minutes reflects the consideration that the board of examiners gave to the objections. Each member answered yes to the following question: "Have you received, read and considered the entire record in this matter, including the Transcript of Proceedings, Exhibits, Hearing Officer's Report and Recommendation and the Objections filed in the matter of the eligibility of Mr. Darl Reynolds to be licensed as a Nursing Home Administrator in Ohio."
{¶ 11} The question that must be answered by this court is the degree to which the board of examiners must consider the objections. The plain language of R.C.
{¶ 12} In appellant's second assignment of error, appellant argues that the trial court erred in ruling that the board of examiners was correct in allowing appellant's conviction for Medicaid fraud to be admitted as evidence and used to decide the status of appellant's license. Appellant asserts that his conviction was the result of a no contest plea and should be inadmissible since Crim.R. 11(B)(2) and Evid.R. 410 prohibit the use, in a civil or criminal proceeding, of a no contest plea as evidence.
{¶ 13} A distinction exists between the use of a no contest plea and the use of the Medicaid fraud conviction entered after the no contest plea was given. The use of a no contest plea is prohibited. The use of the bare fact of a prior conviction, where there is a statutory basis for license revocation or other sanction, is not. The sixth appellate district ruled on a similar issue in Jaros v. Ohio St. Bd. of Emergency Med. Serv., Lucas App. No. L-01-1422, 2002-Ohio-2363. In that case, a firefighter entered a no contest plea and was convicted of a misdemeanor involving moral turpitude. The court ruled that the conviction alone was enough to revoke his EMT license.
{¶ 14} The Jaros court, at fn. 1, stated that the distinction was significant:
* * * [T]he use of a no contest plea is prohibited in any subsequent civil or criminal proceedings. See Crim.R. 11(B)(2). For example, if appellant had pled no contest and been found not guilty, the no contest plea could not have been utilized by the Board for any reason. In this case, however, it is the conviction, not the no contest plea, which is the basis of the review by the Board. Therefore, the no contest plea is irrelevant for purposes of the Board's authority to revoke appellant's license.
{¶ 15} Similarly, in State v. Mapes (1985),
Crim.R. 11(B)(2) and Evid.R. 410 prohibit only the admission of a no contest plea. These rules do not prohibit the admission of a conviction entered upon that plea when such conviction is made relevant by statute. The trial court was correct in admitting the evidence of the prior conviction as it was not equivalent to the admission of the no contest plea and it was not introduced by the prosecution for any purpose other than establishing the specification. The purpose of Evid.R. 410 as it relates to criminal trials is to encourage and protect certain statements made in connection with plea bargaining and to protect the traditional characteristic of the no contest plea which is avoiding the admission of guilt that is inherent in pleas of guilty. See 1 Weissenberger, Ohio Evidence (1985) 55, Section 410.1 and Advisory Committee Notes to Fed.R.Evid.
{¶ 16} Based upon these authorities, we find that the trial court did not abuse its discretion by finding that the board could rely on the Medicaid fraud conviction in order to make a decision concerning appellant's license. Appellant's second assignment of error is overruled.
{¶ 17} In appellant's third assignment of error, appellant argues that the certified transcript of appellant's sentencing hearing in the Medicaid fraud conviction should not have been admitted to the board of examiners' proceedings. We agree that this was possibly error on the part of the board of examiners, but find that this does not warrant reversal.
{¶ 18} Appellant argues that the admission of the transcript is hearsay, and moreover, constituted proceedings in connection with a no contest plea and was thus, again, inadmissible under Crim.R. 11(B)(2) and Evid.R. 410. Appellant claims that parts of the transcript, particularly some statements by the trial court, are irrelevant and prejudicial.
{¶ 19} As a general rule, administrative agencies are not bound by the strict rules of evidence applied in court. Haley v. Ohio State Dental Bd. (1982),
{¶ 20} Arguably, the hearsay contained in the sentencing hearing transcript bears sufficient indicia of trustworthiness to be admissible in an administrative hearing; less arguably, it falls outside the bar against use of a no contest plea in subsequent civil proceedings. These questions are moot, however, because a review of the statements in question reveal that they simply were not of a prejudicial nature such that their admission affected the outcome of the proceedings. The board of examiners was obviously already aware of the bare fact of appellant's conviction for Medicaid fraud, and the transcript of the sentencing hearing added little if anything to this fact. The colloquy between the court, appellant, and the state did not disclose any particularly remarkable or prejudicial aspects of the offense. The rendition of the facts by the state was brief and reflected a rather moderate attitude toward appellant, as did the comments of the trial court. The inclusion of this hearsay was likely unnecessary in the proceedings before the board of examiners, but the ambivalent nature of the statements themselves reflect the absence of prejudice to appellant. In the absence of a showing of prejudice, any error in admitting the transcript was harmless, and will not give us grounds to reverse. We accordingly find that no prejudicial error occurred when the trial court found that the board of examiners had not erred in admitting the transcript. Appellant's third assignment of error is overruled.
{¶ 21} Appellant's fourth assignment of error asserts that the trial court abused its discretion by finding that the board of examiners did not err in adopting the administrative hearing officer's report. Appellant asserts that the board of examiners, in doing so, was led to rely on Medicaid cost reports cited by the hearing officer that should not have been admitted as evidence of fraud.
{¶ 22} Appellant was charged by the board of examiners with knowingly making "false or misleading statements or misrepresentations in Medicaid Cost Reports during service as the administrator of a nursing home as described in Count One, above, [which] demonstrates a lack of good moral character." Appellant argues that the cost reports do not contain evidence of fraud. Appellee contends that this is beside the point, since the cost reports were not admitted to prove fraud but, rather, used to prove that appellant served as an administrator of the nursing home. We agree with appellee's contention. R.C.
{¶ 23} The cost reports were necessary to show that appellant was acting as a nursing home administrator when the fraud was perpetrated. We find the trial court did not err in adopting the administrative hearing officer's report, admitting cost reports of long term lodging, and finding that such reports supported revocation of license. Appellant's fourth assignment of error is overruled.
{¶ 24} Assignments of error five, seven, eight, and nine all raise issues related to the manifest weight of the evidence relied upon to revoke appellant's license, and will be discussed together. Appellant asserts that the trial court erred in ruling that the board of examiners' order revoking appellant's license was supported by reliable, probative, and substantial evidence.
{¶ 25} Conditions for revocation of a nursing home administrator's license are set forth in R.C.
The license or registration, or both, or the temporary license of any person practicing or offering to practice nursing home administration, shall be revoked or suspended by the board of examiners of nursing home administrators if such licensee or temporary licensee:
* * *
(C) Is guilty of fraud or deceit in the practice of nursing home administration or in his admission to such practice[.]
{¶ 26} As set forth in our discussion of appellant's second assignment of error, appellant's Medicaid fraud conviction is admissible and the board of examiners was correct in considering this evidence when deciding to revoke appellant's license. In Columbus Bar Assn. v. Gloeckner (1982),
{¶ 27} In appellant's sixth assignment of error, appellant argues that revoking his license based on one occurrence of misdemeanor Medicaid fraud, particularly when appellant had no prior offenses, is an excessive penalty.
{¶ 28} Once reliable, probative, and substantive evidence is found to support an order by the board, then the reviewing court may not modify a sanction authorized by statute. Henry's Café v. Bd. of Liquor Control (1959),
{¶ 29} Even if this court were inclined to be more lenient toward appellant, it could not modify a sanction imposed by the board of examiners as long as the penalty is one permitted under R.C.
{¶ 30} In summary, appellant's nine assignments of error are overruled, and the judgment of the Franklin County Court of Common Pleas, upholding the order of the Ohio State Board of Examiners of Nursing Home Administrators revoking appellant's license to practice nursing home administration in Ohio, is affirmed.
Judgment affirmed.
PETREE, P.J., and LAZARUS, J., concur.
DESHLER, J., retired of the Tenth Appellate District, assigned to active duty under authority of Section
Case-law data current through December 31, 2025. Source: CourtListener bulk data.