A state regulator's decision to allow a national hospital chain to build Loudoun County's second hospital was supported by "substantial evidence," but his failure to disclose some e-mails supporting the project showed a "blatant disregard" of state law, a Circuit Court judge has ruled.
In a ruling that mostly favored Nashville-based HCA Corp., Judge Theodore J. Markow said Wednesday that the e-mails, which State Health Commissioner Robert B. Stroube did not release to HCA or to Loudoun Healthcare Inc., may have influenced Stroube's decision. One of the e-mails, which suggested that Gov. Mark R. Warner (D) backed the new hospital, was sent by James Reinhard, commissioner of the Virginia Department of Mental Health, Mental Retardation and Substance Abuse Services.
Markow characterized this as a "reversible error," however, and asked that attorneys for HCA, Loudoun Healthcare and Stroube propose remedies within 30 days.
The ruling came nearly two months after attorneys for Loudoun Healthcare and HCA appeared in court to debate the legitimacy of Stroube's approval of HCA's revised plan to build a hospital in the Broadlands area of eastern Loudoun.
Attorneys for Loudoun Healthcare, which has run the nonprofit Loudoun Hospital for 92 years, had argued that Stroube's approval of HCA's plan last February was "arbitrary and capricious" because the commissioner rejected a nearly identical plan a year earlier. They had said Stroube's decision was swayed by the e-mails and by correspondence he received after the closing date of the request process.
HCA's attorneys had said the revised petition for the Broadlands Regional Medical Center had significant changes. Among them, the new proposal had fewer beds and added obstetric services. State attorneys, arguing on behalf of Stroube, had said the commissioner's treatment of the e-mails and correspondence amounted to "harmless errors."
This week's ruling is the latest development in a battle over the future of health care in the nation's fastest-growing county, where local officials say health care services have not kept up with population growth.
Loudoun Healthcare contends that the Broadlands project -- to be built just five miles from its Lansdowne campus -- would cause competition that would drive up health care costs. HCA says the county can support two hospitals.
Markow's ruling -- which also said Stroube complied with the State Medical Facilities Plan and committed only a "harmless error" in accepting correspondence after the closing date -- was greeted with mixed reactions by both HCA and Loudoun Healthcare.
Tony Raker, spokesman for Loudoun Healthcare, said officials were pleased that Markow faulted Stroube for not revealing the e-mails but were disappointed by Markow's decision not to compare the two Broadlands applications.
"That argument is far from over," Raker said. Loudoun Healthcare plans to appeal Markow's ruling that HCA's second proposal was "not arbitrary and capricious."
In a statement, Broadlands officials called Stroube's failure to disclose the e-mails an "administrative error" that they expected to be resolved.
"We're very pleased that Judge Markow agreed with the commissioner's decision to approve" the Broadlands medical center, said Bryan K. Dearing, the hospital's designated CEO.
