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MOORESVILLE HOSPITAL MANAGEMENT ASSOCIATES, INC., d/b/a LAKE NORMAN
REGIONAL MEDICAL CENTER, Petitioner v. NORTH CAROLINA DEPARTMENT OF
HEALTH AND HUMAN SERVICES, DIVISION OF FACILITY SERVICES, CERTIFICATE
OF NEED SECTION; ROBERT J. FITZGERALD in his official capacity as Director of the
Division of Facility Services, and LEE B. HOFFMAN in her official capacity as Chief of the
Certificate of Need Section, Respondents, and THE PRESBYTERIAN HOSPITAL and THE
TOWN OF HUNTERSVILLE, Respondent-Intervenors
Appeal and Error; Hospitals and Other Medical Facilities--certificate of need--mootness
The Court of Appeals erred in denying respondent-intervenor Presbyterian
Hospital's motion to dismiss as moot petitioner's appeal from a decision of the Department of
Health and Human Services upholding a certificate of need for Presbyterian Hospital to build a
hospital in Huntersville where, prior to the Court of Appeals decision, construction of the
hospital had been completed and the hospital was fully operational.
Appeal pursuant to N.C.G.S. § 7A-30(2) from the decision of a divided panel of
the Court of Appeals, 169 N.C. App. 641, 611 S.E.2d 431 (2005), affirming in part, reversing in
part, and remanding a final agency decision entered 20 March 2003 by the North Carolina
Department of Health and Human Services. On 30 June 2005, the Supreme Court allowed
petitioner's petition for discretionary review as to additional issues and a writ of certiorari filed
by respondents and respondent-intervenors to review an order entered by the Court of Appeals
on 4 January 2005 denying respondent-intervenors' motion to dismiss. Heard in the Supreme
Court 15 November 2005.
Smith Moore LLP, by Maureen Demarest Murray and James G. Exum, Jr., for
petitioner-appellant/appellee.
Roy Cooper, Attorney General, by James A. Wellons, Special Deputy Attorney
General, for respondent-appellees/appellants.
Nelson Mullins Riley & Scarborough LLP, by Noah H. Huffstetler, III, for
respondent-intervenor-appellees/appellants.
PER CURIAM.
Respondent Department of Health and Human Services (DHHS) issued a
certificate of need (CON) to respondent-intervenor Presbyterian Hospital. Petitioner requested a
contested case hearing to challenge the CON, and an administrative law judge recommendeddenying the CON. When respondent DHHS upheld the CON, petitioner appealed to the Court of
Appeals.
While the appeal was pending, respondent-intervenor Presbyterian Hospital
obtained an operating license from DHHS. On 19 November 2004, before the Court of Appeals
issued its decision, respondent-intervenors filed in that court a motion to dismiss petitioner's
appeal as moot because construction of Presbyterian Hospital had been completed and the
hospital was fully operational. The Court of Appeals denied the motion in an order dated 4
January 2005. On 19 April 2005, in a divided opinion, the Court of Appeals affirmed the
decision of respondent DHHS in part and reversed and remanded in part.
On 18 May 2005, respondents and respondent-intervenors filed an appeal based
on issues raised by the dissent and a petition for writ of certiorari requesting review by this Court
of the Court of Appeals 4 January 2005 order that denied respondent-intervenors' motion to
dismiss the appeal as moot. On 24 May 2005, petitioner filed a notice of appeal based on the
dissent and a petition for discretionary review as to additional issues. The Court allowed both
petitions on 30 June 2005.
Thereafter, respondent-intervenors filed motions to take judicial notice and for
sanctions. Respondents and respondent-intervenors also filed two motions in opposition to
petitioner's response to their brief, one to strike portions of the reply brief and the other to
disallow the entire reply brief. Respondent-intervenors' motion to take judicial notice is
allowed. Respondents and respondent-intervenors' motion to strike is dismissed as moot.
Respondents and respondent-intervenors' motion to disallow the reply brief is dismissed as
moot. Respondent-intervenors' motion for sanctions is denied.
Arguments were heard before this Court on 15 November 2005. We conclude
that the Court of Appeals erred in denying respondent-intervenors' motion to dismiss as moot.
The opinion of the Court of Appeals is vacated. The appeal before this Court is dismissed as
moot. Petitioner's petition for discretionary review is dismissed as improvidently allowed.
VACATED; APPEAL DISMISSED AS MOOT; DISCRETIONARY REVIEW
IMPROVIDENTLY ALLOWED.
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