Medstar Health v. Maryland Health Care Commission

893 A.2d 1099, 391 Md. 427, 2006 Md. LEXIS 113
CourtCourt of Appeals of Maryland
DecidedMarch 7, 2006
DocketNo. 37
StatusPublished
Cited by3 cases

This text of 893 A.2d 1099 (Medstar Health v. Maryland Health Care Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Medstar Health v. Maryland Health Care Commission, 893 A.2d 1099, 391 Md. 427, 2006 Md. LEXIS 113 (Md. 2006).

Opinions

WILNER, J.

We are faced, for the second time in three years, with a challenge to a part of the State Health Plan (SHP) dealing with cardiac surgery services in the Washington, D.C. metropolitan area. Some of the contextual background to this case was set forth in Medstar v. Maryland Health Care Commission, 376 Md. 1, 827 A.2d 83 (2003) (.Medstar I), which involved an attack on the 2001 SHP. The challenge here is to the 2004 SHP. We need not repeat all that was covered in Medstar I and shall recite only what is particularly relevant to the issues raised here by appellants MedStar Health and Washington Adventist Hospital.

BACKGROUND

In conformance with the National Health Planning and Resources Development Act of 1974 and through the enact[430]*430ment of what is now Maryland Code, title 9, subtitle 1 of the Health-General Article, the General Assembly created and has periodically revised a comprehensive regime for regulating health care resources in Maryland. There are two principal, and inter-related, components of the regulatory scheme—the SHP, designed to identify the health needs and resources throughout the State, and a Certificate of Need (CON) program, designed to allocate and ration health care resources in conformance with the SHP.1 The development and implementation of both components were, and to a large extent still are, entrusted to the Maryland Health Care Commission, created by the Legislature as an independent unit within the State Department of Health and Mental Hygiene.2

The SHP is in the form of regulations incorporated by reference in COMAR, title 19, subtitle 24, chapters 07 through 18. Chapter 17 deals with Cardiac Surgery and Therapeutic Catheterization Services (SHP-Cardiac Services). In conformance with the legislative finding expressed in § 19-102(a) that the health care regulatory system is “a highly complex structure that needs to be constantly reevaluated and modified in order to better reflect and be more responsive to the ever changing health care environment and needs of the citizens of this State,” the Commission is required to review the SHP annually and update it at least every five years. See § 19-118(a) and (b). In 1999, the Commission decided to revise the cardiac services part of the Plan on a tri-annual basis. In [431]*4312001, it revised the 1998 plan, and in 2004, it revised the 2001 plan.

As noted, the CON program is an allocation and rationing device, designed to assure that health care resources, which are expensive to create and maintain, are sufficient to meet the public need, but not excessive. The law requires a person to obtain a CON issued by the Commission before developing, operating, or participating in the creation or relocation of any health care facility or health care service offered by a health care facility. § 19-120. Section 19-118(a) requires that the SHP include “[t]he methodologies, standards, and criteria for certificate of need review.” Those standards must “address the availability, accessibility, cost, and quality of health care” and are to be “reviewed and revised periodically to reflect new developments in health planning, delivery, and technology.” § 19-118(d). Section 19-120(e) directs the Commission to adopt regulations for “applying for and issuing certificates of need.” See, in general, Adventist v. Suburban, 350 Md. 104, 711 A.2d 158 (1998).

In conformance with the legislative direction, now found in § 19-117(a), to designate health service areas in the State, the Commission, for purposes of SHP-Cardiac Services, has divided the State into four service regions—Western Maryland, Metropolitan Washington, Metropolitan Baltimore, and Eastern Shore. The Metropolitan Washington region comprises five Maryland counties—Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s—and the District of Columbia. It is the only one of the four regions that includes an area outside of Maryland—the District of Columbia—in which the Commission has no jurisdiction but nonetheless considers facilities and resources located there in devising the SHP.

After considerable study, the Commission, several years ago, reached the conclusion that it was generally preferable, as a matter of public policy, to support a small number of high-volume cardiac surgery programs than a large number of lower volume programs. In furtherance of that conclusion, the Commission adopted and maintains, as part of the SHP-[432]*432Cardiac Services, a requirement that there should be a minimum of 200 open heart surgery procedures performed annually in any institution in which open heart surgery is performed for adult patients.

When the Commission’s 2001 SHP-Cardiac Services plan was developed and promulgated, six hospitals in the Metropolitan Washington Region performed open heart procedures. Two of those hospitals were located in Maryland (Washington Adventist in Montgomery County and Prince George’s Hospital Center in Prince George’s County); the other four were in the District of Columbia. The number of procedures performed by those hospitals in the relevant years was as follows: 3

Hospital 1999 2000 2001 2002 2003
Prince Geo. Hosp. Ctr 120 155 150 159 155
Wash. Advent. Hosp. 817 802 770 739 721
Georgetown Univ. Hosp. 140 122 269 260 92
Geo. Wash. Univ. Hosp. 85 103 177 190 261
Howard Univ. Hosp. 50 45 20 23 16
Wash. Hosp. Ctr. 2,950 2,631 2,324 2,252 2,152

When the Commission undertook to revise the Cardiac Services part of the 1998 State Health Plan, the law required that the SHP include the “[¡Identification of unmet needs, excess services, minimum access criteria, and services to be regionalized.” See former Health-General Article (2000 Repl.Vol.) § 19—121(2)(iii). At the time, there was no actual “unmet need” in the Metropolitan Washington Region. The data showed a projected need in the Region for 4,251 procedures and a capacity, based on the number of procedures actually being performed, of 4,432 cases.

[433]*433In an asserted effort to improve accessibility and cost, however, the Commission adopted a new methodology for measuring available capacity. Instead of determining capacity based on the number of procedures actually being performed by the six hospitals in the Region, it created an artificial cap, for each hospital, of the higher of 800 cases or 50% of the projected gross regional need. The effect of that cap was to reduce, for purposes of calculating the regional capacity, the number of procedures performed at Washington Hospital Center (WHC)—the only hospital affected by the cap—from 2,950 cases (the number actually performed in the base year) to 2,126 cases (50% of the projected regional need). That served to reduce the Commission—determined regional capacity from 4,432 cases to 3,608 cases and thus show an unmet need of 643 cases (4,251 need less 3,608 capacity).

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Related

Maryland Attorney General Opinion 100OAG160
Maryland Attorney General Reports, 2015
Adventist Health Care Inc. v. Maryland Health Care Commission
896 A.2d 320 (Court of Appeals of Maryland, 2006)
Medstar Health v. Maryland Health Care Commission
893 A.2d 1099 (Court of Appeals of Maryland, 2006)

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Bluebook (online)
893 A.2d 1099, 391 Md. 427, 2006 Md. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/medstar-health-v-maryland-health-care-commission-md-2006.