Appeal of Behavior Science Institute

436 A.2d 1329, 121 N.H. 928
CourtSupreme Court of New Hampshire
DecidedOctober 30, 1981
DocketNo. 80-470
StatusPublished
Cited by11 cases

This text of 436 A.2d 1329 (Appeal of Behavior Science Institute) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appeal of Behavior Science Institute, 436 A.2d 1329, 121 N.H. 928 (N.H. 1981).

Opinion

King, C.J.

The issue in this case is whether the New Hampshire Department of Health and Welfare, Office of Health Planning and Development, after a reconsideration hearing, properly retracted the certificate of need for a psychiatric hospital which it had previously granted to Behavior Science Institute. We remand.

On October 25, 1979, Behavior Science Institute submitted a letter of intent to the New Hampshire Office of Health Planning and Development (State agency) pursuant to RSA ch. 151-C, which regulates all new proposed institutional health services. RSA 151-C:1 I (Supp. 1979); RSA 151-C:7 IV (Supp. 1979). The letter stated that Behavior Science intended to construct and operate a sixty-bed psychiatric hospital in Salem, New Hampshire. The letter further stated that the estimated total cost of the project was $1,500,000, and that the estimated date of financial obligation to undertake the project, and of project initiation, was March 15, 1980.

The State agency duly complied with RSA 151-C:7 V (Supp. 1979), which requires newspaper publication and that written notice of the receipt of such letter of intent be provided to all “affected persons.” The public notice included the proposed number of beds and the location of the hospital and indicated that the deadline for the submission of any competing applications was December 24, 1979, a date which complied with the statutory deadline of sixty days. RSA 151-C:7 VI(b)(l) (Supp. 1979). Community Care Systems, Inc., received notice only through the newspaper publication.

On December 27, 1979, Behavior Science notified the State agency in writing of its intention to relocate the site of the proposed psychiatric hospital to the Nashua area. The letter indicated that the intention to relocate had been previously communicated to the State agency on November 6, 1979, and that the State agency had stated that such a change was permissible. On December 28, 1979, Behavior Science submitted a draft containing a revised estimate of construction costs from $2,557,764 to $3,410,352, a method for financing, and a statement that the location would be the “Greater Nashua” area and “Hillsborough County.” The public was not given notice of the changes.

[931]*931The formal application of Behavior Science for a certificate of need to establish the hospital in Nashua was submitted to the State agency on January 25, 1980, on forms provided by the agency for such purpose. RSA 151-C:7 III (Supp. 1979). As required by RSA 151-C:7 XI (Supp. 1979), the State agency gave written notice to Behavior Science and to the numerous other affected persons as defined by the statute, RSA 151-C:7 V (Supp. 1979), and published notice in newspapers, that it had begun formal review of Behavior Science’s application to construct a sixty-bed psychiatric hospital in the Nashua area at an estimated cost of $3,400,000. See RSA 151-C:7 XI (Supp. 1979).

Behavior Science’s application was found incomplete under RSA 151-C:7 VIII(b) (Supp. 1979), and Behavior Science submitted additional information on February 26, 1980, which included a statement that Behavior Science would be given a six-month option to buy either of two parcels of land in Nashua or Merrimack. The submitted letter also indicated that one investor, Gerald Nash, had expressed a willingness to construct the hospital on the Merrimack site for $1,750,000.

In the meantime, Community Care Systems, Inc. (Community Care) submitted a letter of intent on February 12, 1980, that, as an “original applicant,” it proposed to construct an eighty-four-bed psychiatric hospital in the city of Manchester. Its application was not treated by the State agency as a “competing application” to that of Behavior Science because it had not been filed within sixty days after the filing of Behavior Science’s application, as required by RSA 151-C:7 VI (Supp. 1979). As indicated by the State agency’s memorandum, Community Care also filed a competing application with respect to an application of Medical Management Associates, Inc., on February 12, 1980, and then withdrew its letter of intent as an original applicant. Nevertheless, the State agency continued to process Community Care’s application as an original applicant.

On March 4, 1980, the State agency informed Behavior Science that its application was still incomplete, and referred to the project as a psychiatric hospital in Salem to be built at an estimated cost of $1,500,000. Three days later on March 7, 1980, Behavior Science responded by bringing to the agency’s attention the fact that its application proposed a hospital in “Nashua” involving a total expenditure of $3,410,352. On March 12, 1980, Behavior Science notified the State agency that the total project cost would be reduced to $2,142,800 in accordance with the estimate received from Gerald Nash of the cost of construction at the Merrimack site.

[932]*932Having determined that Behavior Science’s application was complete, the State agency concluded its review of the application, as required by RSA 151-C:7 VIII (Supp. 1979), by March 19, 1980, and so notified Behavior Science. The notification, however, requested that Behavior Science furnish additional data concerning the financing of the project.

RSA 151-C:7 XV (Supp. 1979) recommends that the State agency seek the recommendation of the designated United Health Systems Agency (HSA) for the health service area in which the proposed new institutional health service is to be offered or developed, as to whether a certificate of need should be issued. As a consequence thereof, on May 8, 1980, the designated HSA held a public hearing on the application of Behavior Science. The HSA voted to recommend the denial of Behavior Science’s application and forwarded its recommendation to the State agency on July 2, 1980.

On July 11, 1980, in response to the HSA’s recommendation of denial, Behavior Science submitted supplemental material to the State agency as rebuttal to the factual findings of HSA. The rebuttal also indicated that Gerald Nash and Samuel Tamposi would construct the hospital in Nashua and lease it to Behavior Science. On July 29, 1980, Behavior Science submitted a letter and further supplemental material which amended its original application by reducing the proposed bed capacity from sixty to fifty beds. The letter also included revised income and operating cost projections. By letter dated August 5, 1980, Behavior Science supplied a revised estimate of $2,142,800 as the estimated total capital cost of the fifty-bed hospital project.

On August 6, 1980, the State agency approved the amended application of Behavior Science and issued a certificate of need for the proposed fifty-bed hospital at the Kessler Farm site in Nashua at an approved cost of $2,142,800. On the same date, the agency adopted a .15 beds per 1,000 persons limit on the number of psychiatric hospital beds in the State of New Hampshire.

On August 20, 1980, and August 22, 1980, Community Care and the HSA, respectively, filed requests with the State agency for reconsideration of the award of a certificate of need to Behavior Science, pursuant to RSA 151-C:8 V (Supp. 1979). On September 26, 1980, the State agency granted the requests for reconsideration in order to determine whether there was sufficient disclosure to opposing parties of Behavior Science’s application, and whether those parties had to be heard relative to the information which Behavior Science supplied to the State agency, on July 11, 1980, and July 29,1980.

[933]

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Bluebook (online)
436 A.2d 1329, 121 N.H. 928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appeal-of-behavior-science-institute-nh-1981.