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. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

  2. Don't we have bigger issues to concern ourselves with?

  3. Anyone who takes the time to study disciplinary and bar admission cases in Indiana ... much of which is, as a matter of course and by intent, off the record, would have a very difficult time drawing lines that did not take into account things which are not supposed to matter, such as affiliations, associations, associates and the like. Justice Hoosier style is a far departure than what issues in most other parts of North America. (More like Central America, in fact.) See, e.g., http://www.theindianalawyer.com/indiana-attorney-illegally-practicing-in-florida-suspended-for-18-months/PARAMS/article/42200 When while the Indiana court system end the cruel practice of killing prophets of due process and those advocating for blind justice?

  4. Wouldn't this call for an investigation of Government corruption? Chief Justice Loretta Rush, wrote that the case warranted the high court’s review because the method the Indiana Court of Appeals used to reach its decision was “a significant departure from the law.” Specifically, David wrote that the appellate panel ruled after reweighing of the evidence, which is NOT permissible at the appellate level. **But yet, they look the other way while an innocent child was taken by a loving mother who did nothing wrong"

  5. Different rules for different folks....

ADVERTISEMENT