Health and Hosp. Corp. of Marion County v. Marion County

Decision Date19 November 1984
Docket NumberNo. 2-882-A-264,2-882-A-264
PartiesThe HEALTH AND HOSPITAL CORPORATION OF MARION COUNTY, Appellant (Plaintiff), v. MARION COUNTY, Indiana, City-County Council of Marion County, Indiana, Board of County Commissioners of Marion County, Indiana, and the Sheriff of Marion County, Indiana, Appellees (Defendants).
CourtIndiana Appellate Court

Michael A. Bergin, Locke, Reynolds, Boyd & Weisell, Thomas R. Neal, Gen. Counsel, The Health and Hospital, Corp. of Marion County, Indianapolis, for appellant.

Richard S. Ewing, Chief Litigation Counsel, Kristie L. Hill, Deputy Corp. Counsel, Robert M. Kelso, Asst. Corp. Counsel, City-County Legal Div., Indianapolis, for appellees.

BUCHANAN, Chief Judge.

CASE SUMMARY

Plaintiff-appellant, the Health and Hospital Corporation of Marion County (Health and Hospital), appeals the trial court's decision by way of summary judgment that it has the duty to pay for hospital care for prisoners of the defendant-appellee Sheriff of Marion County (Sheriff) treated at Wishard Memorial Hospital (Wishard Hospital), which is owned and operated by Health and Hospital.

We reverse.

FACTS

On May 30, 1980, Health and Hospital filed an action for declaratory judgment against Sheriff, seeking a pronouncement of the responsibilities of the parties as to payment for care given to prisoners of the Sheriff by Wishard Hospital. Health and Hospital amended the complaint to add defendants-appellees Board of Commissioners (Commissioners), City-County Council of Marion County (Council), and Marion County, Indiana (Marion County) as defendants. [Collectively, the defendants-appellees, including Sheriff, are hereinafter cited as Appellees].

When protracted negotiations between Health and Hospital and Appellees proved futile, the parties filed a stipulation of facts and motions for summary judgment. After a hearing, the court issued its findings, conclusions, and judgment in favor of Appellees on March 30, 1982.

The pertinent findings reveal that Health and Hospital is a municipal corporation created and organized under Ind.Code 16-12-21 (1982) [hereinafter cited as the Health and Hospital Act]. Health and Hospital owns and operates Wishard Hospital, where medical treatment and hospital care are provided to inmates of Sheriff's county jail. Prisoners have been and are brought to Wishard Hospital when the Sheriff believes they are in need of hospital care or medical services. The prisoners remain in Sheriff's custody during transportation to and treatment at Wishard Hospital.

The Sheriff provides deputies who guard Sheriff's prisoners while they are at Wishard Hospital. Health and Hospital employs personnel and buys supplies and equipment needed to provide medical services and hospital care to Sheriff's prisoners at Wishard Hospital.

The trial court's findings declare that the Council, which is the legislative body of the consolidated city of Indianapolis and of Marion County, has statutory power to adopt a budget and appropriate monies for the Sheriff. 1 The Council also possesses the power to review and modify the budget and tax levies of Health and Hospital. 2 Health and Hospital has requested that the Sheriff pay for care rendered to his prisoners while at Wishard Hospital. Though Sheriff has made no payments since 1953, he has included the estimated amounts for that care in his budget request to the Council for the last two years prior to the initiation of this action; however, the Council has deleted those amounts from the Sheriff's budget estimates each year.

The court's findings further reflect that Health and Hospital has included the anticipated cost for treatment of Sheriff's prisoners at Wishard Hospital in its proposed annual budget for each budget year from 1955 through 1982, but not as a separate line item. The anticipated costs were likewise included in Health and Hospital's request for a particular tax levy. Since 1970 Health and Hospital's budgets have been submitted to the Council for its review and modification.

The findings also indicate that the Sheriff is responsible for taking care of the jail and its inmates. He has the care and custody of his prisoners and owes those prisoners a duty to take reasonable precautions to protect their lives, health, and safety. The Sheriff and the Commissioners are subject to Marion County Jail Inmates v. Broderick, (filed March 24, 1976) S.D.Ind. No. IP 72-C-424, a memorandum decision of the United States District Court for the Southern District of Indiana, which implemented the Marion County jail rules. The jail rules, in part, obligate the Sheriff to follow specified regulations and procedures for providing medical care to his prisoners. The Sheriff is responsible for summoning medical help when prisoners in his legal custody need care. Under the jail rules, the Sheriff and jail physician decide when and if a prisoner should be sent to Wishard Hospital, but, at Wishard Hospital, the hospital doctors and staff make all decisions relating to medical care, including when a prisoner is able to return to the jail. Record at 295-98.

Thus, the findings reflect that Health and Hospital has provided substantial nonreimbursed care to prisoners of the Sheriff, which monies have necessarily been absorbed in Health and Hospital's budget. This information is also reflected in an affidavit filed with the trial court at the time of the summary judgment. Record at 328-30.

On this factual basis, the court grounded its conclusion that Health and Hospital "has the duty and responsibility to provide and fund medical services and hospital care to prisoners of the Marion County Sheriff when summoned by him." Record at 298. Concluding that "[n]one of the Defendants [Appellees] have the duty to provide or fund" the care at issue, the court found the law to be with Appellees and accordingly entered judgment in their favor. Id.

Health and Hospital's motion to correct error was denied on July 16, 1982. This appeal follows.

ISSUES

Two issues are presented for review:

1. Did the court err in concluding as a matter of law that Health and Hospital has the duty and responsibility to provide medical services and hospital care to prisoners of the Sheriff at Wishard Hospital?

2. Did the court err in holding as a matter of law that none of the Appellees have the duty to provide or fund medical services and hospital care rendered to prisoners of the Sheriff by Wishard Hospital?

STANDING

A submerged question not raised by the parties needs to be levitated to the surface; to-wit, standing. Is this merely a dispute between local governmental units inhabited by opposing political parties who are engaging in an intramural dispute in which there is no justiciable harm? Is this case an appropriate one for judicial review? 3 If not, we have no jurisdiction to reach the merits of this appeal. City of Indianapolis v. Indiana State Bd. of Tax Comm'rs, (1974) 261 Ind. 635, 308 N.E.2d 868. Our conclusion is that this is not an intramural contest between governmental units. There is a justiciable controversy.

Health and Hospital is a municipal corporation, legislatively created and unique to Marion County. Marion County Dep't of Pub. Welfare v. Methodist Hosp., (1982) Ind.App., 436 N.E.2d 123; IC 16-12-21. It possesses two statutorily recognized sources of revenue: (1) the collection of reasonable charges for medical services rendered from patients able to pay, IC 16-12-21-28(14), or from entities required to pay on a patient's behalf, IC 16-12-21-28(4), -21-28(13), and (2) a tax levy calculated "to provide funds for the operating expenditures necessary to carry out the powers, duties and functions of the corporation." IC 16-12-21-45. The budget and levy are subject to review by the Council, IC 36-3-6-9(a)(2), and the tax levy is also subject to review by the County Tax Adjustment Board and the State Board of Tax Commissioners. IC 16-12-21-45. As a unit of the Consolidated City-County Government of Marion County (Uni-Gov), the Sheriff's budget requests are subject to Council approval and appropriation. IC 36-3-6-1 to -6-9. Thus, the parties on opposite sides of this dispute appear to be technically within the control of a third party to the same dispute. Is the reality of a true controversy present? Is there special injury? See Cablevision v. Colby Cable Corp., (1981) Ind.App., 417 N.E.2d 348, trans. denied.

Health and Hospital began this action by filing for a declaratory judgment. 4 Two prerequisites exist for standing to prosecute a declaratory judgment action. The party must have a "substantial present interest in the relief sought." Lutheran Hosp. v. Department of Pub. Welfare, (1979) Ind.App., 397 N.E.2d 638, 646. And, the party must show "that a question has arisen affecting their rights which ought to be decided in order to safeguard such rights." Id.

Health and Hospital possesses a substantial interest in the relief it seeks. The affidavit of Charles Robbins (Robbins), the financial planner for Health and Hospital, reveals that for the years immediately prior to the filing of this action Health and Hospital provided uncompensated medical services to prisoners of the Sheriff in the following amounts: In 1978 the cost of services was $942,886.00; in 1979 the cost of services was $1,156,000.00; in 1980 the cost of services was $1,105,000.00; and in 1981 the cost of services was $1,849,000.00. Record at 328. Robbins's affidavit further stated that,

"there is no tax or other government revenue available to Wishard to pay for the cost of this care. Health and Hospital's tax and grant revenues support its public health, administration, and hospital services. Because the public health and administrative services mandated by Health and Hospital's enabling statute produce almost no income, tax revenues are used to offset almost all of its costs....

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Government tax revenues available to offset Wishard's costs in 1981...

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