Commissioner of Public Health v. Bessie M. Burke Memorial Hospital

323 N.E.2d 309, 366 Mass. 734, 1975 Mass. LEXIS 1137
Massachusetts Supreme Judicial Court·Decided February 5, 1975·Published·Cited by 23 cases

Opinion

Kaplan, J.

To prevent unnecessary expansion of health care facilities in the Commonwealth and encourage appropriate allocation of resources for health care purposes, legislation was passed forbidding substantial new ' construction of such facilities except upon application to the Department of Public Health and administrative “determination” of “need.” The two hospitals involved in the present case each applied for a determination with respect to a desired construction project; the determination was unfavorable as to one hospital, and as to the other was favorable only in part. The Legislature then in each *736 instance enacted a statute which, without in terms repealing the general statute, in effect directed the department to make the determination that would enable the hospital to carry out its project. The question raised is whether such a direction by the Legislature, singling out a particular hospital for favorable treatment, encounters any constitutional obstacle. In more detail, the case is as follows.

The Bessie M. Burke Memorial Hospital (Burke Hospital), a municipal hospital of the city of Lawrence, has for some years been interested in renovating its facilities, and in October, 1970, the Department of Public Health indicated approval of the hospital’s plan of renovation as a step, apparently, toward securing funding for the construction. Statute 1971, c. 596, was approved on August 5,1971, authorizing the city to borrow up to $1,500,000 to finance the work, and the city thereupon approved the funding, called for bids, and on November 23, 1971, entered into a contract with a construction company. Evidently the city officials were not aware of the fact that St. 1971, c. 1080, had been enacted into law and become effective several days earlier, on November 15,-1971; when this came to their attention they suspended work under the contract.

Chapter 1080, entitled “An Act to prevent unnecessary expansion of health care facilities during the period ending [May 31, 1972],” required,- as a condition of commencing construction of a new health care facility, or commencing construction renovating an existing facility, which in either case would call for a capital expenditure of $100,000 or more, that the Department of Public Health make a “determination” that there was a “need” therefor. The statute made provision for application, hearing, and reference of the proposal to certain agencies for comment, as predicates for the departmental determination which was to set forth reasons. Acknowledging that its planned construction was within the statute, Burke Hospital applied on December 29, 1971, for the necessary determination. The application was denied on April 11, 1972, by the department’s public health council, which concurred in a negative recommendation of the Merrimack Valley Health Planning *737 Council. 2 Regulations permitted an intradepartmental appeal, and such an appeal was taken by Burke Hospital by letter of May 5,1972. On June 1,1972, however, permanent legislation became effective — St. 1972, c. 776, constituting G. L. c. Ill, §§ 25B-25G, and superseding the 1971 statute. As the new legislation established a health facilities appeals board as a board of review (see c. 776, § 1), Burke Hospital’s appeal was forwarded to that board. But the board on December 20, 1972, remitted the appeal and others like it to the Commissioner, stating that it lacked jurisdiction to hear them because the determinations as to need were made before June 1,1972.

The record, does not disclose whether Burke Hospital took any further steps to secure favorable determination within the department. It did not seek judicial review of the negative determination. 3 Resort was had to the Legislature, which on October 17, 1973, enacted St. 1973, c. 923, as an emergency law. This states that, “[notwithstanding the provisions of... [St. 1972, c. 776], or any other contrary provision of law, the commissioner of public health is hereby authorized and directed to issue a certificate of need and a temporary hospital license 4 to the city of Lawrence for the continued operation of the Bessie M. Burke Memorial Hospital.... Said city of Lawrence is hereby authorized and directed to expend such sums of money as were authorized by ... [St. 1971, c. 596] to remodel, reconstruct, enlarge, make extraordinary repairs to, re-equip and refurnish said Bessie M. Burke Memorial Hospital.” *738 The relevant bill (H. 7496) had been first returned by the Governor with the recommendation that provision be made, instead, for review by the hospital facilities appeals board so that all facilities would be treated equally. The Legislature did not heed the recommendation. The Governor then returned the bill without his approval (H. 7653) noting the Attorney General’s adverse criticisms of it, including the main objection that it violated art. 30 of the Declaration of Rights of the Massachusetts Constitution regarding the separation of powers. 5 The veto was overridden by the necessary votes in both Houses.

The present case by the Commissioner of Public Health against Burke Hospital and the city of Lawrence seeks a declaration that the 1973 enactment, requiring the Commissioner to take the action therein specified, is unconstitutional as violating, besides art. 30, the “standing laws” provision of art. 10 of the Declaration of Rights, and the Fourteenth Amendment to the United States Constitution.

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Commissioner of Public Health v. Bessie M. Burke Memorial Hospital, 323 N.E.2d 309, 366 Mass. 734, 1975 Mass. LEXIS 1137 (Mass. 1975).

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