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Thursday, January 19, 2006

Ind. Decisions - Judge Barker rules on whether communities have right to restrict new medical centers [Updated]

The Louisville Courier Journal reports today, in a story by Alex Davis:

Officials in Clark and Floyd counties overstepped their authority last year when they passed legislation blocking the construction of private hospitals, a judge ruled yesterday.

In a 38-page ruling issued in Indianapolis, U.S. District Judge Sarah Evans Barker granted a permanent injunction against the construction moratoriums in both counties.

The Clark County commissioners approved a two-year ban last February to protect their county-owned hospital, Clark Memorial in Jeffersonville. Floyd officials passed a one-year moratorium in March to protect Floyd Memorial, also county-owned.

The votes came after two groups of private investors from Kentucky announced plans to build hospitals -- one in Jeffersonville, the other in either Clarksville or New Albany. * * *

Daniel Warncke, the Cincinnati attorney for the private investors, called the court ruling a "home run" for his clients and said the county commissioners were "misinformed by the hospitals about the extent of power" that they had to enact the moratoriums.

But the issue may not be concluded.

Scott Waters, attorney for Floyd Memorial's board of directors, said he believes the counties may have grounds upon which to appeal the ruling to the 7th U.S. Circuit Court of Appeals in Chicago. There is a 30-day time limit, he said. * * *

Hallal, the New Albany physician, said he believed the court ruling could have an impact on other Indiana counties where moratoriums have either been discussed or approved. He said his investor group already has incurred extra costs because construction delays and legal bills, but he said the group is committed to the hospital project and he said yesterday's ruling was "a positive development for free enterprise."

In November Judge David F. Hamilton issued a similar ruling - see the ILB entry here.

Judge Barker's opinion has not been posted in the public area of the federal court's website. I will obtain and post a copy here shortly.

[Updated] Here is Judge Barker's opinion in Kentuckiana Medical Center v. Clark County, Indiana, dated 1/18/06.

Posted by Marcia Oddi on January 19, 2006 09:52 AM
Posted to Ind Fed D.Ct. Decisions