ILNews

Contract termination ends health care provider’s eligibility for federal funds

Back to TopCommentsE-mailPrintBookmark and Share

Finding that the status of the grant holder had changed, the 7th Circuit Court of Appeals ruled that Citizens Health Corp. is no longer eligible for Section 330 federal monies.

The 7th Circuit upheld the ruling of the U.S. District Court for the Southern District of Indiana, Indianapolis Division, in Citizens Health Corporation v. Kathleen Sebelius, Sectary of Health and Human Services, et al., 12-3924. The appellate court affirmed the summary judgment in favor of all defendants based on the conclusion that Citizens had no contractual, statutory, or constitutionally perceivable interest in the grant funds.

Citizens Health Corp. had been receiving a Section 330 grant to support its Indianapolis medial center that served the indigent population. When Health and Hospital Corp. decided to end its relationship with Citizens Health Corp., Health and Hospital also relinquished the grant.

Concerned it would loss the federal funds, Citizens filed suit against Health and Hospital, the federal Health Resources and Services Administration, and other defendants seeking to enjoin the defendants from terminating the Section 330 grant.

The health care provider argued that HRSA’s decision to allow Health and Hospital to relinquish the grant was both contrary to law and a violation of Citizens’ procedural due process rights.

The 7th Circuit rejected Citizens’ argument, finding that the health care provider’s grant status had changed. When Citizens partnered with Health and Hospital, the latter organization became the sole grantee with the responsibility to receive, manage and disburse Section 330 grant funds.

Citizens’ entitlement to the grant funds existed only by contract with Health and Hospital. Once that contract ended, Citizens was no longer eligible for the Section 330 grant.

 
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

ADVERTISEMENT