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06/29/89 Charter Medical of Cook v. Hca Health Services of

June 29, 1989

HOSPITAL OF HOFFMAN ESTATES, ET AL., PLAINTIFFS-APPELLANTS

v.

HCA HEALTH SERVICES OF MIDWEST, INC., D/B/A HCA WOODLAND HOSPITAL, ET AL., DEFENDANTS-APPELLEES. -- CHARTER MEDICAL

ESTATES, ET AL., PLAINTIFFS-APPELLANTS

v.

COMMUNITY PSYCHIATRIC CENTERS, INC., D/B/A COMMUNITY PSYCHIATRIC



APPELLATE COURT OF ILLINOIS, FIRST DISTRICT, FOURTH DIVISION

CHARTER MEDICAL OF COOK COUNTY, INC., d/b/a Charter

OF COOK COUNTY, INC., d/b/a Charter Hospital of Hoffman

Center Hoffman Estates Hospital, et al., Defendants-Appellees

Nos. 1-88-3233, 1-88-3527 cons.

542 N.E.2d 82, 185 Ill. App. 3d 983, 134 Ill. Dec. 82 1989.IL.1028

Appeal from the Circuit Court of Cook County; the Hon. Kenneth L. Gillis, Judge, presiding.

APPELLATE Judges:

PRESIDING JUSTICE JIGANTI delivered the opinion of the court. JOHNSON and McMORROW, JJ., concur.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE JIGANTI

This consolidated appeal challenges the authority of the Illinois Health Facilities Planning Board (Board) to award certificates of need to three applicants whose construction of psychiatric hospitals in planning area 7-E would produce more beds than the projected bed need. The appeal is brought by one of the certificate of need recipients, Charter Medical of Cook County (Charter). Charter seeks a reversal of the Board's decision to award certificates of need to the other two recipients, HCA Health Services of Midwest and Community Psychiatric Center . Joining Charter in this appeal are Northwest Mental Health Centers and the Maine Family Service and Mental Health Association (collectively, the Centers), who operate existing mental health facilities in planning area 7-E.

The relevant facts are undisputed. Pursuant to the Illinois Health Facilities Planning Act (Ill. Rev. Stat. 1987, ch. 111 1/2, par. 1151 et seq.), an entity which proposes to build a new health care facility must file a certificate of need application for approval by the Illinois Health Facilities Planning Board. Charter, HCA, and CPC filed their respective CON (certificate of need) applications within three weeks of each other. All three applicants proposed to construct and operate free-standing acute mental illness hospitals in Hoffman Estates, Illinois. Hoffman Estates is located in planning area 7-E. Charter sought to build an 80-bed hospital. HCA and CPC each sought to build 100-bed hospitals. At the time each of the applications was deemed complete, the stated bed need for acute mental illness beds in planning area 7-E was 154.

A public hearing was held on October 15, 1987, regarding HCA's application. Under the Board rules, Charter and the Centers were entitled to present testimony regarding HCA's application. Accordingly, Charter submitted a letter asserting that the project failed to comply with State Board Rule 1110.730(a) (77 Ill. Adm. Code § 1110.730(a) (1985)), which provides that "[additional] or new beds must be added to existing hospitals." The Centers also filed an objection alleging that HCA's application was not in conformance with certain review criteria set forth in the Board rules. After several other hearings, HCA's application was approved by the Board on November 5, 1987. Pursuant to the Board rules, Charter submitted a request for reconsideration of the approval of HCA's application on the basis that the Board failed to follow its adopted procedures. Charter contended, among other things, that pursuant to Board Rule 1160.420 (77 Ill. Adm. Code § 1160.420 (1985)), the Board was required to batch HCA's application with Charter's pending application. The Board denied the request for reconsideration. Charter subsequently filed a complaint for administrative review in the circuit court. The circuit court affirmed the Board's approval of HCA's application.

A public hearing was held on CPC's application on November 16, 1987. Charter filed an objection asserting that CPC's project failed to comply with Rule 1110.730(a), which requires that additional or new beds be added to existing hospitals. After several other hearings, CPC's application was approved on February 5, 1988. Charter requested a reconsideration hearing, contending, among other things, that pursuant to Board Rule 1160.420, the Board was required to batch HCA's application with Charter's pending application. Upon denial of the request for reconsideration, Charter filed a complaint in the circuit court for administrative review. The circuit court affirmed the Board's approval of CPC's application.

Charter's certificate of need application to construct a 100-bed acute mental illness facility was approved on February 5, 1988. Neither HCA nor CPC challenges the ...


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