Opinion ID: 1707271
Heading Depth: 1
Heading Rank: 3

Heading: Moratorium

Text: The hospitals claim that the fifth amendment to the Governor's moratorium prohibits the issuance of a CON to Lloyd Noland. Lloyd Noland's CON application was filed in May 1984. Executive Order 28, dated August 1, 1984, imposed a moratorium on the filing, acceptance of, consideration of, and acting upon CON applications. The fourth amendment to this order, dated January 14, 1986, provided that the moratorium no longer relates to the relocation of a health facility ... not result[ing] in the addition of new beds or services. Lloyd Noland's application was heard and approved by the CON Review Board in May 1986. The fifth amendment, dated October 27, 1986, extended the moratorium to apply to new hospital construction under the guise of relocation, except in the case of relocation necessary to replace an existing general acute care hospital or nursing home in its entirety because of its physical condition. The hospitals claim that the fifth amendment merely clarifies the executive order and that the prior amendments, including the fourth amendment, must be interpreted in light of the fifth amendment. They claim that the fifth amendment makes it clear that the moratorium was never intended to allow costly new hospitals to be created from existing hospitals' licensed bed capacity. The fifth amendment, however, does not indicate that it is to have retroactive application, nor that it is to void results of hearings conducted under the fourth amendment. The amendment states that the moratorium shall relate to relocations and, that under certain conditions, total relocations are possible under the moratorium as hereby amended. Thus, the moratorium had been effectively lifted by the fourth amendment at the time of the hearing on Lloyd Noland's application. Further, the hospitals argue that even if the fourth amendment allowed the hearing on Lloyd Noland's application, the fifth amendment prohibits the actual issuance of the CON and resulting construction of the hospital. This argument is now moot because the moratorium expired on June 19, 1989, pursuant to the ninth amendment to Executive Order 28.