Cathedral Rock of Granite City, Inc., v. Health Facilities Planning Bd., No. 4-98-0893

4th District, 9 December 1999

JUSTICE GARMAN delivered the opinion of the court:

The Illinois Health Facilities Planning Board (Board) granted a certificate of need (CON) jointly to defendants Rosewood Care Center, Inc., of Cook County, No. 4, and HSM Development No. 5, L.L.C. (hereinafter referred to collectively as Rosewood), on January 27, 1997, allowing Rosewood to build an 80-bed, long-term-care nursing facility in Granite City, Madison County, Illinois. Plaintiff Cathedral Rock of Granite City, Inc. (Cathedral), a competing nursing facility, appealed the decision to the circuit court of Sangamon County pursuant to section 11 of the Illinois Health Facilities Planning Act (Planning Act) (20 ILCS 3960/11 (West 1998)). The circuit court affirmed the Board's decision. Plaintiff raises the following arguments on appeal to this court: (1) the Board's decision to grant the CON is void because the proceedings before the Board were tainted by ex parte communications, (2) plaintiff was denied procedural due process by the proceedings before the Board, (3) the Board's decision was against the manifest weight of the evidence and/or arbitrary and capricious, and (4) if this court invalidates the Board's regulations, plaintiff is entitled to attorney fees under section 10-55 of the Illinois Administrative Procedure Act (Procedure Act) (5 ILCS 100/10-55 (West 1998)). We affirm.

I. BACKGROUND

The purpose of the Planning Act is to "establish a procedure designed to reverse the trends of increasing costs of health care resulting from unnecessary construction or modification of health care facilities." 20 ILCS 3960/2 (West 1998). In furtherance of this purpose, section 4 of the Planning Act provides for the creation of the Board and governs its duties and functions. 20 ILCS 3960/4 (West 1998). The Planning Act provides that no person may construct or modify a health care facility without first obtaining a CON from the Board. 20 ILCS 3960/5 (West 1998). The Illinois Department of Public Health (Department) serves as administrative and staff support for the Board. 20 ILCS 3960/4 (West 1998). The Department is authorized, with the prior approval of the Board, to prescribe rules, regulations, standards, and procedures to carry out the provisions and purposes of the Planning Act. 20 ILCS 3960/12 (West 1998). These regulations (Regulations) are contained in sections 1110.10 through 1260.50 of Title 77 of the Illinois Administrative Code. 77 Ill. Adm. Code