Diamond Grove Center, LLC v. Mississippi State Department of Health
2012 Miss. LEXIS 506
| Miss. | 2012Background
- River Region filed a March 2010 CON to renovate its west campus and add twenty adolescent psychiatric beds in Warren County, despite a statewide moratorium on such beds.
- River Region relied on Mississippi Code § 41-7-191(4)(a)(iii) to waive the State Health Plan need requirement and authorize up to 20 beds.
- DOH staff recommended approval; a five-day hearing occurred in November 2010 after Diamond Grove challenged the proposal.
- The hearing officer ruled that § 41-7-191(4)(a)(iii) authorizes approval if other CON criteria are met and that the need requirement is waived.
- DOH granted the CON to River Region; Diamond Grove appealed to the Hinds County Chancery Court, which affirmed.
- Historically, Brentwood Health Management held a 1995 Warren County CON for adolescent beds; a 2001 amendment was later declared unconstitutional in 2002, and Brentwood’s status was revoked in 2007; River Region’s CON followed in this context.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 41-7-191(4)(a)(iii) authorizes a continuing CON for Warren County beds. | Diamond Grove contends the grant was a one-time exception, not perpetual. | River Region asserts the statute contemplates ongoing authority to authorize up to 20 beds. | DOH interpretation is reasonable; Diamond Grove's challenge fails. |
Key Cases Cited
- Mississippi Methodist Hosp. and Rehab. Ctr. v. Miss. Div. of Medicaid, 21 So.3d 600 (Miss. 2009) (agency interpretations reviewed de novo when interpreting statutes)
- Queen City Nursing Center, Inc. v. Miss. State Dep’t of Health, 80 So.3d 73 (Miss. 2011) (agency interpretations given substantial deference absent plain language contradictions)
- Brentwood Health Mgmt. of Miss. v. Miss. State Dep’t of Health, 29 So.3d 774 (Miss. 2010) (related to Brentwood’s prior CON and subsequent judicial treatment)