AIDS Healthcare Foundation v. State Department of Health Care Services

INTRODUCTION

AIDS Healthcare Foundation and AHF Healthcare Centers (collectively AHF) appeal from the judgment of dismissal entered after the trial court sustained without leave to amend the demurrer by the State Department of Health Care Services and its director Toby Douglas (collectively the Department) to AHF’s petition for a writ of administrative mandamus. AHF sought a writ directing the Department (1) to withdraw its order rejecting and remanding an administrative law judge’s proposed decision on AHF’s administrative claims against the Department, and (2) to adopt as the “Final Decision” certain portions of the administrative law judge’s proposed decision and to reject other portions. The trial court concluded that AHF was not entitled to judicial review because it had failed to exhaust its administrative remedies and that there was no applicable exception to the exhaustion requirement. We conclude that the exhaustion requirement bars AHF’s petition because AHF’s administrative claim is not final and that the Department’s administrative processes and procedures were legally adequate and did not violate the law. Therefore, we affirm.

FACTUAL AND PROCEDURAL…