Colo. Health Fac. Rev. Council v. Dist. Ct.

689 P.2d 617
CourtSupreme Court of Colorado
DecidedOctober 22, 1984
Docket84SA187, 84SA188
StatusPublished

This text of 689 P.2d 617 (Colo. Health Fac. Rev. Council v. Dist. Ct.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colo. Health Fac. Rev. Council v. Dist. Ct., 689 P.2d 617 (Colo. 1984).

Opinion

689 P.2d 617 (1984)

COLORADO HEALTH FACILITIES REVIEW COUNCIL, Petitioner,
Swedish Health Corporation, Co-Petitioner,
v.
DISTRICT COURT In and For the CITY AND COUNTY OF DENVER, and the Honorable Daniel B. Sparr, District Court Judge, Respondents.
COLORADO BOARD OF HEALTH, Petitioner,
Swedish Health Corporation, Co-Petitioner,
v.
DISTRICT COURT In and For the CITY AND COUNTY OF DENVER, and the Honorable Daniel B. Sparr, in his capacity as District Court Judge, Respondents.

Nos. 84SA187, 84SA188.

Supreme Court of Colorado, En Banc.

October 22, 1984.

*619 Duane Woodard, Atty. Gen., Charles B. Howe, Chief Deputy Atty. Gen., Richard H. Forman, Sol. Gen., Anthony Marquez, Asst. Atty. Gen., Denver, for petitioner.

Robert E. Youle, Paul C. Daw, Daniel E. Klaus, Sherman & Howard, Denver, for co-petitioner.

Michael W. Lillie, Richard L. Thorgren, Mary H. Rudolph, Hughes & Dorsey, Dirk W. deRoos, Elizabeth MacDonald, Kutak, Rock & Huie, Richard L. Schrepferman, Vicki E. Baer, Holme, Roberts & Owen, Tucker K. Trautman, Margaret L. Toal-Rossi, Ireland, Stapleton, Pryor & Pascoe, P.C., Denver, for respondents.

DUBOFSKY, Justice.

In this original proceeding, we issued a rule to show cause why a complaint filed in Denver District Court by several Denver hospitals requesting interlocutory review of a Colorado Board of Health (board of health) order should not be dismissed for lack of subject matter jurisdiction. The respondent district court denied the board's motion to dismiss the hospitals' complaint and retained jurisdiction to review a board order remanding to a hearing officer "certificate of need" proceedings involving the hospitals. Because the board's remand order was not final agency action subject to judicial review, we make the rule absolute.

In 1982, five health care providers, Adventist Health Systems/Rocky Mountain Hospital, Presbyterian/St. Luke's Medical Center, Mercy Medical Center, St. Joseph Hospital (the plaintiffs) and Swedish Health Corporation (Swedish) filed applications for certificates of public need to build new hospital facilities in the south Denver metropolitan area. The applications, filed with the Colorado Health Facilities Review Council (HFRC), estimated times of completion for the proposed facilities ranging from December 1984 to June 1986.

Section 25-3-506, 11 C.R.S. (1982) requires a certificate of need before a health care facility can be constructed. Under section 25-3-511(2), 11 C.R.S. (1982),[1] the HFRC must make several statutory findings before granting a certificate. Because the five applications here affected the same health service area, the HFRC considered them concurrently, and found that: (1) there was no need for new health facilities in the area covered by the applications, and there would be no such need at the time that the proposed facilities would be completed; and (2) for each application, there were superior alternatives to the proposed construction of a new facility.

*620 All five applicants appealed the HFRC decision to the board of health, but Swedish later withdrew its appeal and intervened in support of the HFRC decision. Humana Hospital of Aurora (Humana) also intervened in support of the HFRC decision. The Board of Health appointed a hearing officer to take testimony concerning the appeals, § 25-1-108(1)(d), 11 C.R.S. (1982),[2] and in the spring of 1983 the hearing officer conducted hearings on the need for new facilities. On August 11, 1983, the hearing officer issued an interlocutory decision holding that it was more reasonable to assess need for new hospital facilities in terms of projected population in 1990 rather than 1985. The hearing officer concluded that the number of hospital beds needed in 1990 was between 125 and 400. Therefore, the hearing officer reversed the HFRC decision that no need existed for new hospital facilities in the south metro area. The hearing officer instructed the applicants in the next phase of the hearings, on the merits of the applications, to address the "determination that the bed need range for the south metro area is 125 to 400 with no more than 175 beds or one facility to be approved without accompanying reduction in beds by closure of existing facilities or otherwise."

Swedish filed a petition with the board of health requesting review of whether the hearing officer had exceeded his jurisdiction by considering the time period from 1986 to 1990, a time period following that contemplated by the applicants in setting the proposed facility completion dates. The board of health initially rejected Swedish's petition, but on October 28, 1983, the board directed the hearing officer to redesignate the interlocutory decision as an "initial decision" subject to review by the board. The hearing officer issued a revised initial decision on November 7, 1983. In addition to reaffirming his prior holdings, the hearing officer specifically overturned each of the HFRC determinations, and consistently assessed the number of beds needed in the south Denver area in terms of projected populations for 1990.

At the board of health meeting on January 18, 1984, Swedish, Humana and the HFRC argued that the hearing officer's jurisdiction to review certificate of need decisions was limited to the findings made by the HFRC and the projected need for hospital beds as of the anticipated completion dates for the proposed facilities. Therefore, they maintained that the hearing officer's decision should not be based on population projections for 1990. Subsequently, the board of health set aside the hearing officer's initial decision, limited his jurisdiction to a determination of need for the proposed services based upon the times of completion set forth in the applications, and directed him to redetermine need and complete the merits phase of the hearing, limiting his review to the findings of the HFRC on the merits of the applications.[3] At St. Joseph's request, the board reconsidered this decision at its February 15, 1984 meeting and in effect amended its order to allow the hearing officer to take evidence related to the need for hospital beds through 1990.

The plaintiffs filed suit in district court before the January meeting of the board of health. On February 22, 1984, they filed an amended complaint, requesting the *621 court to enjoin the proceedings before the board of health and to review the board's January order. The board of health, HFRC and Swedish filed motions to dismiss for lack of subject matter jurisdiction. On March 6, 1984, without the benefit of briefs on the issue of jurisdiction, the district court heard argument and denied the motion. In a subsequent written opinion, the district court determined that it had jurisdiction to review the board of health's order under section 24-4-106(2), 10 C.R.S. (1982); sections 24-4-105, 10 C.R.S. (1982) and 25-3-509, 11 C.R.S. (1982); and section 24-4-105(10), 10 C.R.S. (1982). The HFRC and the board of health each filed petitions with this court for a writ of prohibition against the district court's exercise of jurisdiction. We hold that the district court lacked jurisdiction to review the interlocutory decision of the board of health and therefore erred in denying the motion to dismiss.

I.

In general, courts will not interfere with agency proceedings until the agency has taken final action. Department of Revenue v. District Court, 172 Colo.

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