BUSINESSMichigan court refuses to hear certificate-of-need appealThe decision clears the path for two hospital systems to transfer beds from existing city facilities to new sites in the Detroit suburbs.By Katherine Vogt, amednews staff. Sept. 26, 2005. Two controversial hospital expansion projects in suburbs near Detroit scored a major victory when the Michigan Supreme Court declined to hear a lawsuit that claimed the projects unfairly skirted the state's certificate-of-need process. On Sept. 1, the court announced that it refused to hear an appeal in a lawsuit that sought to stop Henry Ford Health System and St. John Health from moving forward with plans to build or expand hospitals in nearby Oakland County. St. John Chief Executive Elliot Joseph hailed the decision as a victory for patients "because it reaffirms our position that there is a definite need for access to inpatient medical care in the rapidly growing western suburbs," he said in a written statement. Five other hospitals -- three of which have operations in Oakland County -- had sued, challenging the constitutionality of portions of a law state legislators passed that allowed Detroit-based health systems to, under certain criteria, transfer beds from existing facilities to the new projects. That meant they could bypass the certificate-of-need regulatory approval process for building. The lawsuit drew the support of Detroit's big businesses -- including the Big Three automakers -- who objected that the legislative exemptions set an unfair precedent and could translate into wasteful spending of health dollars. A lower court judge ruled in 2004 that the plaintiffs didn't have legal standing to intervene, and an appeals court upheld the ruling. [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2005 American Medical Association. All rights reserved.
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The AMA's House of Delegates is holding its Interim Meeting Nov. 7-10 in Houston, addressing issues such as health system reform and physician payment. Meeting coverage - Slideshow Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
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