Irvington General Hospital v. Department of Health

Irvington General Hospital (Irvington) (plaintiff) applied to the New Jersey Department of Health (the department) (defendant) for a certificate of need that would allow it to build an addition with 19 new surgical beds. Under state law, the department was required to consider six factors in evaluating a certificate-of-need application, including (1) the availability of substitute services or facilities and (2) the need for special services or equipment in a particular area. Irvington primarily served a town with a high density of elderly patients whose medical needs included having family and friends nearby for support during hospital stays. If Irvington lacked capacity, the nearest alternative hospital options required traveling outside the town into high-crime areas with poor public transportation. After the application hearing was delayed due to issues on both sides, the hearing officer recommended granting Irvington’s application. However, before the recommendation was heard by the department’s approval board, the board approved a different hospital’s application to reclassify 150 long-term beds as surgical beds. This other hospital served a different population, but both hospitals were in the same county. When the board received the recommendation to grant Irvington’s application, the board noted that there were now 150 more surgical beds than when the hearing officer had made the recommendation. The board remanded the issue to the officer to reconsider in light of the extra beds. At the rehearing, because there was now an excess number of surgical beds in the county, the hearing officer recommended denying Irvington’s application to build its new addition. Irvington appealed the denial to the state superior court.