Doctors Hospital, faces with a June 1980 deadline to vacate its present facilities, has appealed as erroneous, arbitrary and "capricious" a city decision revoking permission to move to another downtown location.
In a letter from its attorney to city health planning director Carl W. Wilson, the hospital challenged each of the five reasons given by Wilson last month for revoking permission to move its operation from 1815 I St. NW to 1143 New Hampshire Ave. NW.
Wilson told the hospital that the city's permission, in the form of a certificate of need, was being revoked because Doctors had entered into a lease-sale agreement with a hospital management firm that would transfer effective control of the new facility to that firm. Wilson said that a certificate of need, under city law, is not transferrable and therefore the certificate would not be renewed.
Doctors plans to sell the New Hampshire Avenue building to American Health Services, Inc. and then lease the building back for about $2.4 million a year. It would pay the firm 6 percent of net revenues to manage the privately owned hospital's operations.
The city insists that the proposed lease bars the hospital from making modifications to the renovation plans without American Health Services' permission. But the hospital attorney said the lease would not begin until the hospital was licensed, and the lease requires compliance with all city laws, ordinances and regulations. That provision, Doctors said, gives it control of the hospital renovations.
Other provisions of the lease, Doctors' lawyer said, could be changed to meet the city's objections. One provision objected to by the city, allowing modification of the lease to meet demands of a mortgage holder, is a "typical lease provision," according to Doctors.
Doctors' letter asked for quick action by Wilson without a public hearing on the question, a step that normally is required.