Methodist Healthcare-Jackson Hospital v. Jackson-Madison County General Hospital District

129 S.W.3d 57, 2003 Tenn. App. LEXIS 369
CourtCourt of Appeals of Tennessee
DecidedMay 22, 2003
StatusPublished
Cited by5 cases

This text of 129 S.W.3d 57 (Methodist Healthcare-Jackson Hospital v. Jackson-Madison County General Hospital District) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Methodist Healthcare-Jackson Hospital v. Jackson-Madison County General Hospital District, 129 S.W.3d 57, 2003 Tenn. App. LEXIS 369 (Tenn. Ct. App. 2003).

Opinion

OPINION

W. FRANK CRAWFORD, P.J., W.S.,

delivered the opinion of the court,

in which ALAN E. HIGHERS, J. and HOLLY KIRBY LILLARD, J., joined.

Respondent hospital filed petition for writ of certiorari and writ of supersedeas in trial court and also filed a request for contested case proceeding before administrative law judge, challenging administrative agency’s issuance of certificate of need to petitioner hospital. Respondent challenged validity of certificate of need, citing the following procedural errors: (1) T.C.A. § 68 — 11—108(e) did not prohibit agency from reconsidering its initial vote in favor of certificate of need application, and that decision to ultimately issue certificate was arbitrary, capricious, and unlawful; and (2) participating agency member had a disqualifying conflict of interest that required member to recuse himself prior to vote on petitioner’s certificate of need application. Trial court dismissed respondent’s petition on grounds that respondent failed to exhaust available administrative remedies. Respondent appealed. While appeal was pending, administrative law judge, in the contested case hearing, granted summary judgment in favor of respondent, finding that T.C.A. § 68-ll-108(e) prohibits reconsideration of an agency’s decision, but not a vote, and also because a member had disqualifying conflict of interest that required him to recuse himself from the vote and proceedings in accordance with agency’s guidelines. Respondent voluntarily dismissed appeal of trial court’s denial of certiorari petition, and court of appeals upheld dismissal. Petitioner appealed administrative law judge’s Order. Trial court reversed, finding that the administrative law judge was without jurisdiction to consider the same issues pending on appeal before the appellate court, and that a genuine issue of fact existed as to whether the respondent waived its right to object to the member’s conflict of interest. Respondent appeals. We vacate the order of the trial court and remand.

This case is before the court for the second time. Petitioner Methodist Healthcare-Jackson Hospital (“Methodist”) 1 is a “non-profit, church-related healthcare provider that operates a hospital in Jackson, Tennessee.” Respondent Jackson-Madison County General Hospital District (“Jackson-Madison”) is a governmental entity responsible for the operation of a competing hospital in Jackson. Respondent Tennessee Health Facilities Commission (“Commission”) is a state agency charged with exercising regulatory control over health care facilities in Tennessee. 2

*60 The first appeal in this case was addressed in an opinion filed November 28, 2001. In the case styled Jackson-Madison County Gen. Hosp. Disk v. Tennessee Health Facilities Comm’n, No. M1999-02804-COA-R3-CV, 2001 WL 1504745, at * 4 (Tenn.Ct.App. Nov.28, 2001), the Tennessee Court of Appeals, Middle Section, considered the sole issue of whether Jackson-Madison was entitled to dismiss its appeal of the trial court’s dismissal of respondent’s Petition for Writ of Certiorari, under T.R.A.P. 15(a). The court of appeals affirmed the trial court’s December 16, 1998 Order dismissing Jackson-Madison’s petition, and granted Jaekson-Madi-son’s Rule 15(a) motion to dismiss its appeal. Id. at * 8. The facts in Jackson-Madison County are identical to those before this Court, and we therefore quote at length from the Middle Section’s opinion in providing the factual background for the case at bar:

Sometime in 1998, Methodist Healthcare-Jackson Hospital (“Methodist Healthcare”) applied to the Tennessee Health Facilities Commission for a certificate of need to undertake a $20,355,810 expansion of its facility for the purpose of initiating neonatal intensive care and open heart surgery services. On September 11,1998, Jackson-Madison County General Hospital District (“Jackson-Madison County”) filed written objections to Methodist Healthcare’s application asserting that the expanded services were not needed and would duplicate services it was already providing.
The Commission took up Methodist Healthcare’s application at its September 23, 1998 meeting. After presentations from both sides, the Commission initially decided by a six to five vote to grant Methodist Healthcare’s application. Following a recess, the commission member who had made the motion to grant Methodist Healthcare’s application moved to reconsider the vote. The Commission adopted the motion by a vote of six to five. Thereafter, the Commission, by a six to five vote, denied Methodist Healthcare’s application for a certificate of need, finding that the proposed expansion was neither needed nor economically feasible and that it would not contribute to the development of adequate and effective healthcare in the area.
Methodist Healthcare’s narrow defeat raised questions about the propriety of the Commission’s reconsideration of its initial decision. Even though the Commission had followed a similar procedure in earlier hearings, some questioned whether its second vote was inconsistent with Tenn.Code Ann. § 68-ll-108(e) (Supp.2000). Accordingly, both the Commission and a state senator requested the Attorney General and Reporter to render a formal opinion regarding whether the Commission’s reconsideration of its decision regarding Methodist Healthcare’s application was inconsistent with Tenn.Code Ann. § 68 — 11— 108(e). On October 1, 1998, the Attorney General issued an opinion that the Commission did not have the authority to reconsider its initial decision and that all the Commission’s actions after the initial vote were of no effect.
On October 23, 1998, Jackson-Madison County filed a petition for writ of certiorari and writ of supersedeas in the Circuit Court for Davidson County seeking judicial review of the Commission’s proceedings on two grounds. First, Jackson-Madison County asserted that one of the Commission members who had voted in favor of granting Methodist Healthcare’s application for a certificate of need should have recused himself because his company had a “direct finan *61 cial relationship” with both Jackson-Madison County and Methodist Healthcare. Second, it asserted that the announced intention of the Commission’s staff to issue the certificate of need notwithstanding the Commission’s decision to deny it was arbitrary, capricious, and unlawful.
On October 28, 1998, the circuit court transferred the petition to the Chancery Court for Davidson County, and one of the chancellors signed a fiat directing the clerk and master to issue the writ of certiorari directing the Commission to forward the record of its proceedings involving Methodist Healthcare’s application for a certificate of need to the court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
129 S.W.3d 57, 2003 Tenn. App. LEXIS 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/methodist-healthcare-jackson-hospital-v-jackson-madison-county-general-tennctapp-2003.