Dimensions Medical Center, Ltd. v. Elmhurst Outpatient Surgery Center, L.L.C.

718 N.E.2d 249, 307 Ill. App. 3d 781, 240 Ill. Dec. 768
CourtAppellate Court of Illinois
DecidedSeptember 29, 1999
Docket4-99-0030
StatusPublished
Cited by12 cases

This text of 718 N.E.2d 249 (Dimensions Medical Center, Ltd. v. Elmhurst Outpatient Surgery Center, L.L.C.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dimensions Medical Center, Ltd. v. Elmhurst Outpatient Surgery Center, L.L.C., 718 N.E.2d 249, 307 Ill. App. 3d 781, 240 Ill. Dec. 768 (Ill. Ct. App. 1999).

Opinion

JUSTICE STEIGMANN

delivered the opinion of the court:

In October 1997, defendant Illinois Health Facilities Planning Board (Board) issued a permit, known as a certificate of need (CON), to defendant Elmhurst Memorial Hospital (Memorial), a wholly owned subsidiary of defendant Elmhurst Memorial Health System, to build an outpatient facility to be called the Memorial Center for Health (Center for Health). The Board issued a second CON to Memorial jointly with defendant Elmhurst Outpatient Surgery Center, L.L.C. (Surgery Center), a limited liability company owned by Memorial and several of its physicians, to build an ambulatory surgical treatment center (ASTC), which would provide outpatient surgery services inside the Center for Health.

Later that same month, plaintiffs, Dimensions Medical Center, Ltd. (Dimensions), Access Center for Health, Ltd., and Access Health Center, Ltd. (collectively Access), medical care providers operating existing ASTCs in the geographic area of Memorial’s proposed facility, filed a complaint for administrative review in the circuit court, seeking reversal of the Board’s decisions to issue the two CONs. In July 1998, intervenor, Northwest Community Health Center, Ltd. (Northwest), petitioned to intervene. (Northwest had previously applied unsuccessfully for a CON to operate an ASTC in the same geographic area as Memorial’s proposed ASTC.)

In August 1998, the trial court conducted a hearing on Access and Dimensions’ complaint and on Northwest’s petition to intervene, granted Northwest’s petition, and affirmed the Board’s decision. Access, Dimensions, and Northwest appeal, arguing that (1) the administrative proceedings were unfair because (a) the hearing officer prohibited them from cross-examining witnesses, and (b) the Board allowed the applicants to provide additional materials in support of their CON applications after the close of the public hearing; and (2) the Board’s decision was arbitrary, capricious, and against the manifest weight of the evidence. We affirm.

I. BACKGROUND

Pursuant to section 3 — 106 of the Code of Civil Procedure (Code) (735 ILCS 5/3 — 106 (West 1996)), the Board filed the record of administrative proceedings as its answer to Access and Dimensions’ complaint. That record consists of 7 volumes and nearly 2,500 pages of documentation. The evidence was nearly identical regarding the CON applications for the Center for Health and the ASTC, and the only reason two different CON applications were involved is because two different corporate entities applied for the CONs. None of these nuances are relevant to our analysis. Accordingly, our references to the evidence will relate to both applications unless otherwise stated. In addition, we will avoid unnecessary confusion by referring to both Memorial and the Surgery Center as Memorial.

In June 1997, Memorial filed applications for the Board to issue CONs for the two projects at issue — namely, the Center for Health and the ASTC. According to the application materials, Memorial’s existing hospital facilities were aging and overcrowded, and Memorial wanted to modernize some of its outpatient services. Because of physical limitations and zoning restrictions, Memorial could not accomplish these changes within the existing hospital structure, and adjacent land was not available.

Accordingly, Memorial sought to build the Center for Health approximately four miles from the hospital. Memorial planned the Center for Health to be a four-story facility housing the following: (1) an outpatient care center, to include (a) diagnostic radiology, (b) magnetic resonance imaging, (c) non-invasive diagnostic cardiology and cardiac rehabilitation, (d) physical and occupational therapy, (e) preadmission and preprocedure testing, and (f) specimen collection; (2) a regional blood bank; (3) leased space for private physicians’ offices; and (4) the ASTC, which would offer a variety of outpatient surgical procedures, not to include pregnáncy terminations. The Center for Health was projected to cost approximately $48 million, and the ASTC was projected to cost approximately $4 million.

The applicants provided the Board with a large amount of documentation in support of their claims that the new facility was necessary because (1) Memorial was currently serving more patients than its existing building could comfortably accommodate; (2) the design of Memorial’s existing building was inadequate to provide outpatient care; and (3) Memorial’s patients were currently receiving outpatient surgery in the hospital’s traditional operating rooms, an inconvenient arrangement due to the layout of the hospital and the need to reschedule surgeries whenever an emergency need for an operating room arose.

Memorial also provided referral letters and statistics regarding the utilization of the hospital’s existing facilities to demonstrate that Memorial’s existing patients and doctors would use the new facility sufficiently for it to be economically feasible. In making these utilization estimates, Memorial did not propose to draw patients from other area facilities. In particular, Memorial based its ASTC utilization estimates on the number of outpatient surgeries it was currently performing in the hospital’s operating rooms.

Dimensions and Access objected to Memorial’s applications and demanded a public hearing. Pursuant to section 8 of the Illinois Health Facilities Planning Act (Planning Act) (20 ILCS 3960/8 (West 1996)), a hearing officer for the Illinois Department of Public Health (Department) conducted two hearings in July 1997 on the same day, one on each of the CON applications. After convening the first hearing, the hearing officer stated the following:

“Keep in mind, this is not a debate. If you feel that something is raised today that you take real issue with and you are lucky enough to follow the person that made that comment, obviously, [you can] indicate[ ] your disagreement.
But the best way to respond is to send me [comments] via [facsimile], because I will keep this record open until the close of business this Friday ***.”

Memorial’s president, Leo Fronza, was the first person to testify. Fronza introduced himself and then gave testimony substantially similar to the assertions in the application materials. When Fronza finished, no one asked to cross-examine him.

The city manager of Elmhurst, Tom Bochard, testified next and confirmed that “[i]t is doubtful that further development of the current hospital site will be allowed, and the [hospital’s] current condition[al-]use permit prohibits any physician offices on the existing campus.” Bochard indicated that the proposed location would avoid zoning problems, then concluded his testimony by saying, “I am pleased as a resident and pleased as a [c]ity manager, the community and hospital have been able to come together on a solution that fills the needs of everyone. I would encourage your approval of this project.” No one asked to cross-examine Bochard. The next eight witnesses all spoke enthusiastically in favor of the proposed facility, and no one asked to cross-examine any of them.

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Bluebook (online)
718 N.E.2d 249, 307 Ill. App. 3d 781, 240 Ill. Dec. 768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dimensions-medical-center-ltd-v-elmhurst-outpatient-surgery-center-illappct-1999.