Wayside Farm, Inc. v. Bowen

698 F. Supp. 1356, 1988 WL 113103
CourtDistrict Court, N.D. Ohio
DecidedOctober 27, 1988
DocketNo. C88-3744A
StatusPublished

This text of 698 F. Supp. 1356 (Wayside Farm, Inc. v. Bowen) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wayside Farm, Inc. v. Bowen, 698 F. Supp. 1356, 1988 WL 113103 (N.D. Ohio 1988).

Opinion

MEMORANDUM OPINION

DOWD, District Judge.

I. INTRODUCTION.

Before the Court in the above-captioned case is the plaintiffs motion for prelimi[1358]*1358nary injunction. On October 13, 1988 the Court denied the plaintiff’s motion for a Temporary Restraining Order primarily on the basis that the plaintiff failed to show any likelihood of success on the merits. (Docket # 10).

The plaintiff has filed a supplemental brief in support of the preliminary injunction with the Court. (Docket # 11). The government has opposed the motion and filed a memorandum in opposition to the motion for preliminary injunction. (Docket # 12). The Court conducted a hearing on the plaintiffs motion on October 18, 1988 and heard both testimony and arguments.

For the reasons that follow, the motion for a preliminary injunction is denied with the limitation that the State defendants are temporarily enjoined from transferring any of the affected Wayside patients prior to Wednesday, November 2, 1988.

II. BACKGROUND.

The background facts in this case are relatively simple and the Court has already discussed them in its order of October 13, 1988. (,See docket # 10 at pp. 2-3). Nonetheless, the Court finds it useful to restate the relevant facts.1

Wayside Farm, Inc. operates an intermediate care nursing facility in Cuyahoga Falls, Ohio. Wayside maintains a Peninsula, Ohio mailing address.

In May of 1985, specifically May 28-30, the Health Care Financing Administration (“HCFA”) conducted an on-site survey of the Wayside facility. The survey was conducted by the HCFA pursuant to its authority to “look behind” the state agency certification of an intermediate care facility. See 42 U.S.C. § 1396i(c).

On August 30, 1985, HCFA officials notified the State of Ohio and Wayside that as a result of the survey deficiencies were found and that the facility’s Medicaid Provider Agreement would be cancelled effective November 1,1985. The net effect of a cancellation of the Medicaid Provider Agreement is the termination of funds paid by the federal government on behalf of Medicaid recipients to Wayside. As a result of the notice of termination, Wayside sought a hearing under the administrative process.

An Administrative Law Judge conducted a hearing on August 12-26, 1986. In a lengthy written opinion, on May 14, 1986, the AU upheld HCFA's determination to cancel the provider agreement for Wayside.

On June 2, 1987, Wayside filed its administrative appeal to the Appeals Council from the ALJ’s decision. Wayside also instituted a law suit against the U.S. Department of Health and Human Services seeking injunctive and declaratory relief prohibiting termination of payment of Medicaid funds to Wayside until the Appeals Council rendered its decision.

The case was assigned to United States District Court Judge Sam H. Bell and Judge Bell rendered a decision on June 30, 1987 finding a preliminary injunction in order pending the decision before the Appeals Council. Wayside Farms v. U.S. Dept. of Health and Human Serv., 663 F.Supp. 945, 954-55 (N.D. Ohio 1987). Judge Bell concluded that “Wayside’s provider agreement should be continued through the administrative appeal....” Wayside, 663 F.Supp. at 954.

On September 28, 1988, the Appeals Council issued its decision affirming the AU’s decision. On October 6, 1988, the plaintiff initiated this appeal challenging the Appeals Council’s decision and seeking injunctive relief that would allow a continuation of the Medicaid funding during the appellate review of the Appeals Council decision.

At issue in Wayside Farms, 663 F.Supp. 945, was the question of whether the provider agreement, and in practical terms the funding for Wayside, would be extended during the administrative appeal from the AU’s decision to the Appeals Council. Under 42 U.S.C. § 1396i(c)(2), a provider agreement remains “in effect until the peri[1359]*1359od for filing a request for a hearing has expired or, if a request has been filed, until a decision has been made by the Secretary.” The question in the earlier litigation was whether the AU’s decision constituted a “decision by the Secretary” as asserted by the government. Judge Bell reasoned that the language “a decision by the Secretary” was equivalent to “a final decision by the secretary,” i.e., the decision by the Appeals Council. Accordingly, Judge Bell determined that the provider agreement was to remain in effect pending the Appeals Council decision.

This case, therefore, is the next step in the process forecasted by Judge Bell. Judge Bell cautioned that

[although [the preliminary injunction] allows plaintiff some period of respite, the Court must make clear that it may be only a brief stay in the termination proceedings relating to Wayside’s provider agreement should the Secretary finally find that decertification is required. After a final decision to that effect, the Secretary is well within his authority and, in fact, required to take such action.

Wayside Farms, Inc., 663 F.Supp. at 954. The Appeals Council has rendered its decision and the government has again served notice upon Wayside that its funds shall be terminated. Wayside is now before this Court asking for an injunction which would, in effect, stay the decision of the Secretary pending the review by this Court under 42 U.S.C. § 405(g).

III. STANDARD FOR PRELIMINARY INJUNCTION.

Under applicable Sixth Circuit precedent, a court must consider four factors in determining whether it should grant an injunction:

(1) whether the plaintiffs have shown a strong or substantial likelihood or probability of success on the merits;
(2) whether the plaintiffs have shown irreparable injury;
(3) whether the issuance of a preliminary injunction would cause substantial harm to others;
(4)whether the public interest would be served by issuing a preliminary injunction.

Mason County Medical Association v. Knebel, 563 F.2d 256, 261 (6th Cir.1988); see also, Glover v. Johnson, 855 F.2d 277 (6th Cir.1988); State of Ohio ex rel. Celebrezze v. N.R.C., 812 F.2d 288, 290 (6th Cir.1987); In re DeLorean Motor Co., 755 F.2d 1223, 1229 (6th Cir.1985). The Court may not weigh mechanically the four factors set out in Mason County. No single factor is determinative, and the Court should weigh each of the factors in light of the factual circumstances of the case. See Roth v. Bank of the Commonwealth, 583 F.2d 527, 537-38 (6th Cir.1978), cert. granted,

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698 F. Supp. 1356, 1988 WL 113103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wayside-farm-inc-v-bowen-ohnd-1988.