Endoscopy Associates, Inc. v. Rhode Island Department of Health

Citations

• 183 A.3d 528

Syllabus

The petitioner, Endoscopy Associates, Inc. (Endoscopy), appeals from a judgment of the Superior Court that reversed a decision by the Department of Health (the DOH) to grant an application for a Health Care Certificate of Need (CON). On January 10, 2013, Endoscopy applied for a CON with the DOH pursuant to the Health Care Certificate of Need Act of Rhode Island, G.L. 1956 chapter 15 of title 23, seeking to change its corporate structure from a physician ambulatory surgery center (PASC) to a freestanding ambulatory surgery center (FASC). As a PASC licensee, Endoscopy is limited to a physician-owned and -operated facility, and by converting to a FASC license, Endoscopy would be able to expand its corporate ownership to nonphysicians and have nonowner physicians practicing in the facility. A competing provider, Blackstone Valley Surgicare Acquisition, L.P., which operates as a FASC, intervened and filed a letter in opposition to Endoscopy's application. The DOH affirmed Endoscopy's CON application. Blackstone Valley requested administrative review of the DOH's decision and argued that Endoscopy's application did not identify an appropriate public need, as required. The matter came before a hearing officer of the Department of Administration (the DOA) the hearing officer reversed the decision of the DOH, and Endoscopy appealed to the Superior Court for judicial review. On appeal, the trial justice was concerned with whether Endoscopy's application was suitable for the CON application process. The trial justice remanded the application to the DOH to ascertain whether the CON application procedure could encompass Endoscopy's application. The trial justice also affirmed the DOA hearing officer's decision. Endoscopy filed for a writ of certiorari. The Supreme Court granted Endoscopy's petition for a writ of certiorari on February 23, 2016, and, in accordance with the trial justice's direction, remanded the papers to the DOH in order to ascertain whether Endoscopy's applicat