York Hosp. v. Harvey

CourtSuperior Court of Maine
DecidedOctober 2, 2007
DocketKENap-04-61and78
StatusUnpublished

This text of York Hosp. v. Harvey (York Hosp. v. Harvey) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
York Hosp. v. Harvey, (Me. Super. Ct. 2007).

Opinion

STATE OF MAINE SUPERIOR COURT CIVIL ACTION KENNEBEC, ss. DOCKET NO. AP-04-61 and AP-04-78 (Consolid"teq) ,-v q/() /1) +-.f tA, - 1<[ (lj- r ocTl YORK HOSPITAL,

Petitioners

v.

BRENDA HARVEY, et al.,

Respondents

******************************************** DECISION AND ORDER

YORK HOSPITAL, et al.,

Petitioners v. JOHN R. NICHOLAS, et al.,

Before the court are petitions for review, consolidated, in the matters of York

Hospital, et al. v. Brenda M. Harvey, et al., Docket No. AP-04-61, and York Hospital, et

al. v. John R. Nicholas, et al., Docket No. AP-04-78. By order of November 23, 2004, the

two petitions have been consolidated for disposition. Both of these actions arise out of

activities of the parties subsequent to an award of a Certificate of Need ("CON") to

Maine Medical Center and Southern Maine Medical Center ("MMC/SMMC") for the

development of a cancer care center in York County. 1

1 The actual application sought a Certificate of Need for a cancer care center in Wells. One of the activities giving rise to this litigation is the amendment to the Certificate of Need upon request for subsequent review to place the cancer care center in South Sanford. 2

The petitions seek judicial review of final action agency by the Commissioner of

the Maine Department of Health and Human Services ("Department") modifying the

CON granted February 4, 2003. The original CON decision was appealed to the Law

Court, remanded to this court and, pursuant to the Mandate, decision of this court is

issued contemporaneous with these matters. See York Hospital, et al. v. John R. Nicholas,

et al., AP-03-24 (Me. Super. Ct., Ken. Cty.).

The petitioners challenge the actions of the Commissioner of the Maine

Department of Health and Human Services regarding the CON award asserting that the

award resulting from the subsequent review is invalid as a matter of law in that the

successful applicant, MMC/SMMC, did not commence the project within 12 months

and the six-month extension pursuant to law and secondly, the decision on the

subsequent review is in violation of the authority granted the respondent by statute.

Under the CON Act, Title 22 M.R.S.A., and the terms of the CON award itself,

MMC/SMMC was required to commence development of its product within one year

after the CON decision. The Act also provided that the Department could grant an

extension of the certificate for an additional time not to exceed 12 months if good cause

is shown why the project has not commenced. At the time of the issuance of the CON

to MMC/ SMMC, the Department had adopted a rule that provided that the holder of a

certificate of need may be considered to have commenced the project in accordance

with the law if it was engaged in litigation of a complaint relative to the issuance of the

certificate. Inasmuch as York Hospital, et al. v. Nicholas, AP-03-24, was before this court

and subsequently on appeal to the Law Court, the Department deemed this project to

have "commenced."

The petitioners challenge that conclusion by asserting that by any set of facts

absent the rule, the project had not commenced because MMC/SMMC had not received 3

site approval from the town of Wells and, indeed, when ultimately received, was so late

that the hospitals moved the project elsewhere. The first argument by petitioners is an

assertion that the petition for subsequent review was a separate proceeding thereby

requiring the Department to utilize the law and regulations in effect at the time of the

request for subsequent review and not those at the time of the application for the CON.

The effect of such a holding would remove the determination that commencement can

be deemed by the presence of litigation. The second prong of petitioners' attack is that

the petition for subsequent review must be handled as a separate application thereby

requiring a new and distinct competitive application for CON with its attendant

procedures. Third, the petitioners challenge the determination by the Commissioner

that he was bound by a ruling of his CON Unit that commencement was deemed to

have taken place by virtue of the rule. 2 In his decision, the Commissioner disagreed

that the project had been commenced but stated that he was bound to comply with the

ruling by the CON Unit. Finally, the petitioners argue that the rule, if it is found to be

operative, exceeds the authority of the Department, violates the Administration

Procedures Act ("APA"), 5 M.R.S.A. § 11004 and is contrary to the CON Act itself

mandating the 12-month completion requirement.

With respect to the commencement issue, the respondent Department argues

that the petitioners did not properly raise the issue of the application of the new CON

Act at the Commissioner level and are therefore, in its judgment, estopped from raising

the issue on judicial review. They further argue, factually, that at the time of the

initiation of the competitive review, the petitioners agreed to the use of the 1978 rule as

2 This comment is relevant because in AP-03-24, this court determined that a very influential part of the CON Unit clearly displayed bias and prejudice in its communications against the petitioners but that its formal recommendations to the Commissioner and the Commissioner's decision itself did not appear to be based upon such bias or prejudice but upon facts which were present in the record. On those grounds, the court did not reverse the CON award. 4

applied to the underlying applications and that the staff and the Commissioner

proceeded on that basis. They further argue that the request for subsequent review is

not a separate proceeding and therefore is subject to the rule regarding commencement

deemed by litigation. In all of these factual procedural matters, the respondents argue

that, as a matter of law, the court should defer to the Commissioner and the

Department as being those most appropriate to interpret the statute and the rules.

To the extent petitioners challenge the authority of the Department to

promulgate such a rule, the Department argues that there is no conflict with the APA

and that the rule is in keeping with the general rule making authority of the

Department to adopt rules for the interpretation, implementation, and enforcement of

any provision of law that the Department is charged with administering. Conservation

Law Foundation, Inc. et al. v. Department of Environmental Protection, et al., 2003 ME 62, 823

A.2d 551. Respondents further argue that the petitioners have the burden to establish

that the Department acted arbitrarily and capriciously in enacting the rule where they

must demonstrate the unreasonableness of the action of the agency and must show that

the rule is unreasonable, lacks a factual basis or lacks support in an evidentiary record.

Id. On the part of the Certificate holder, MMC/SMMC, they argue deference to the

Commissioner and, in addition, assert that 1 M.R.S.A. § 302 clearly establishes that a

proceeding initiated prior to the repeal or amendment of an action shall be considered a

pending proceeding where there has been at least one substantive review thereby

preventing the enacted CON Act or CON rule as a matter of law. They further argue

that the request for subsequent review was not a separate application and therefore the

commencement issue is a continuation of the original application and not a separate 5

proceeding.

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Related

Gagne v. Inhabitants of City of Lewiston
281 A.2d 579 (Supreme Judicial Court of Maine, 1971)
Conservation Law Foundation, Inc. v. Department of Environmental Protection
2003 ME 62 (Supreme Judicial Court of Maine, 2003)

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