Olathe Hospital Foundation, Inc. v. Extendicare

The opinion of the court was delivered by This appeal involves the certificate of need provisions of the Regional Health Programs Act, K.S.A. 65-2a01 et seq. That act provides, among other things, that any person proposing [217 Kan. 548] to construct a new hospital to be licensed under the state's health laws must first secure a certificate of need (65-2a09). Such a certificate may be issued by either a regional planning agency established or designated under the act, or by an appeals panel on appeal from the action of a planning agency (65-2a06). Either the applicant for the certificate of need or any other health facility which believes its interests may be adversely affected by the decision of the appeals panel may appeal the decision of that body to the district court. (Ibid.) The applicant for a certificate of need in this case was Extendicare, Inc., a Delaware corporation authorized to do business in this state, with headquarters in Louisville, Kentucky. Its stock is listed on the New York Stock Exchange. During the course of this litigation its name was changed to Humana, Inc., but it will be referred to herein as Extendicare. It sought a certificate of need to build a 400 bed proprietary hospital in Overland Park, at 105th Street and Quivira Road.