RIH Medical Foundation, Inc. v. Nolan
| Decision Date | 15 January 1999 |
| Docket Number | No. 97-433-Appeal.,97-433-Appeal. |
| Citation | 723 A.2d 1123 |
| Parties | RIH MEDICAL FOUNDATION, INC. v. Patricia A. NOLAN, M.D., in Her Capacity as Director of the Department of Health of the State of Rhode Island. |
| Court | Rhode Island Supreme Court |
Justin T. Shay, Don E. Wineberg, Providence, for plaintiff.
Maureen A. Hobson, Providence, for defendant.
Before WEISBERGER, C.J., and LEDERBERG, BOURCIER, FLANDERS, and GOLDBERG, JJ.
This case comes before us on appeal by the plaintiff, RIH Medical Foundation, Inc. (the Foundation) from a grant of summary judgment entered in the Superior Court in favor of the defendant, Patricia A. Nolan in her capacity as Director of the Department of Health of the State of Rhode Island (DOH), and from the denial of plaintiff's motion for declaratory judgment. The Foundation sought a ruling that since it operates as a nonprofit "organization or association" under the Rhode Island Health Care Facility Licensure Act, G.L.1956 chapter 17 of title 23, it is exempt from licensure as a health care facility. A Superior Court justice ruled that the Foundation is a health care facility subject to licensure under the provisions of § 23-17-2(5). For the reasons that follow, we vacate the judgment of the Superior Court. The facts and travel of the case insofar as pertinent to this appeal are as follows.
On December 12, 1989, the Foundation was organized under the Rhode Island Nonprofit Corporation Act, G.L.1956 chapter 6 of title 7, for the purposes of engaging in the private practice of medicine, conducting medical research, and providing teaching services to undergraduate and postgraduate medical students. The Foundation presently operates sixteen physician practice offices for the provision of medical treatment and services to the general public. Income derived from the Foundation's physician offices provides funding for its operations, including salaries for its employee/members and staff. The Foundation is wholly controlled by its physician members and their board of directors, which is composed of six physicians and one non-physician. On January 16, 1996, the DOH notified the Foundation that upon its review of the Foundation's charter and the definition of "health care facility" as provided in the statute, it determined that the Foundation is not an organization or association composed solely of physicians and is therefore not exempt from licensure as a health care facility. Moreover, unless the Foundation immediately Commenced activities necessary to secure health care facility licensure, with notice to the DOH, it would initiate actions necessary to secure compliance.
In response, the Foundation filed an action in Superior Court pursuant to G.L.1956 § 42-35-7 and G.L.1956 § 9-30-2 seeking a declaration that it was not subject to health care facility licensure and seeking injunctive relief against DOH's threatened action. On September 20, 1996, the DOH filed a motion to dismiss pursuant to Rule 12(b)(6) of the Superior Court Rules of Civil Procedure. On October 18, 1996, a Superior Court justice granted in part, and denied in part, DOH's motion by dismissing the Foundation's § 9-30-2 claim but upholding its right to proceed under § 42-35-7. Further, he found that there were no factual issues in dispute and the question was one of law for the court.
On April 2, 1997, the Foundation filed a motion for summary judgment, to which the DOH objected and filed a cross-motion for summary judgment. After a hearing on both motions, a second Superior Court justice entered an order denying the Foundation's motion for summary judgment and granting DOH's cross-motion. Additional facts as may be necessary to the disposition of this case will be provided below.
Given the posture of this case, the pleadings, affidavits, and other relevant documents must be viewed in the light most favorable to the parties opposing the summary judgment motions. O'Hara v. John Hancock Mutual Life Insurance Co., 574 A.2d 135, 136 (R.I.1990). The moving parties will prevail only if the record reveals no genuine issues of material fact and if they are entitled to judgment as a matter of law. Id. In reviewing the granting of a motion for summary judgment, this Court employs the same rules and analysis as the trial justice. Accent Store Design, Inc. v. Marathon House, Inc., 674 A.2d 1223, 1225 (R.I.1996) (citing Mallane v. Holyoke Mutual Insurance Company in Salem, 658 A.2d 18, 19-20 (R.I.1995)). Because both of the adversary parties filed motions for summary judgment, we shall treat the relevant allegations of both parties in the most favorable light insofar as they oppose the respective motions for summary judgment. On that basis, we sustain the plaintiffs appeal and reverse the hearing justice's grant of summary judgment for the defendant.
The Foundation advances two arguments. First, it contends that exemption from health care facility licensure pursuant to the statutory language of § 23-17-2(5)1 is appropriate because it is an "organization or association" consisting of a "group of practitioners' offices organized as a proper Rhode Island nonprofit corporation." Second, they argue that because all of the Foundation's members, officers and directors, with the exception of one nonvoting director, is a licensed physician, the Foundation is subject to comprehensive statutory regulation under G.L. 1956 chapter 37 of title 5. Thus, imposing health care facility regulation would inappropriately subject the Foundation to double regulation.
In response, the DOH contends that in defining a health care facility, the Legislature deemed it irrelevant whether a facility is operated for profit or nonprofit. Moreover, the words "partnership," "professional service corporation," "organization," and "association" as set forth in § 23-17-2(5) are all terms which modify "practitioners," making it clear that the Legislature intended that entities like the Foundation be licensed as health care facilities.
The hearing justice appears to have granted defendant's motion on the basis of his belief that there is a sufficient distinction between the Foundation and a group of practicing physicians so that health care facility licensure is required. We disagree. There is no substantial difference between the Foundation and an association or group of practicing physicians. The presence of a nonvoting director changes nothing as to governance.
"It is well settled that when the language of a statute is...
To continue reading
Request your trial
-
State v. DiStefano
...interpretation and the language of the statute must be given its plain and literal meaning. See, e.g., RIH Medical Foundation, Inc. v. Nolan, 723 A.2d 1123, 1126 (R.I.1999); State v. Peterson, 722 A.2d 259, 264 (R.I.1998); Accent Store Design, Inc. v. Marathon House, Inc., 674 A.2d 1223, 12......
-
Cohen v. Duncan, C.A. No. 2002-599 (RI 6/9/2004)
...interpret the statute literally and must give the words of the statute their plain and ordinary meanings." RIH Medical Foundation, Inc. v. Nolan, 723 A.2d 1123, 1126 (R.I. 1999) (quoting State v. DiCicco, 707 A.2d 251, 253 (R.I. 1998)). And, "when confronted with an unambiguous statute, [th......
-
Jon E. Cohen v. Charles Duncan, Elizabeth Minifie, Peter J. O'Connel, Michael Martin, and Brian T. McKeon, in their capacities as Members of the Zoning Board of Review of the City of Newport, and the Inn At Cliff Walk, Inc. d/b/a The Chanler,
...v. DiCicco, 707 A.2d 251, 253 (R.I. 1998)). And, “when confronted with an unambiguous statute, [the Court] must apply the statute as written.” Id Although G.L. § 45-24-40(a) (1) & (2) enable the right to alter nonconforming development, G.L. § 45-24-40(c) goes on to limit that right for cer......