Medcorp v. York Township, Unpublished Decision (12-30-2002)
Medcorp v. York Township, Unpublished Decision (12-30-2002)
Opinion of the Court
{¶ 2} "The trial court erred in denying plaintiff/appellant's request for preliminary injunction and dismissing plaintiff/ appellant's complaint on the ground that Medicare and/or Medicaid payments are not `governmental funds' as contemplated in O.R.C. §
{¶ 3} On April 25, 2002, Medcorp filed a "Verified Complaint for Preliminary Injunction, Permanent Injunction, and Declaratory Judgment" against York Township. The complaint alleged that Medcorp is an Ohio corporation licensed to provide emergency medical transportation services, including advanced life support services, and that York Township entered into a contract with LifeStar Ambulance, Inc., for the provision of advanced life support services in York Township. The complaint further alleged that because LifeStar is a private non-profit ambulance company that receives over one-half of its operating funds from governmental entities, the contract was entered into in violation of the competitive bidding requirements set forth in the Ohio Revised Code. Medcorp then requested a preliminary injunction preventing York Township from acting upon the contract with LifeStar until the court made a final determination as to the validity of the contract; a permanent injunction preventing York Township from acting on its contract with LifeStar; and a declaratory judgment holding that York Township violated the competitive bidding requirements of the Ohio Revised Code, that prior to entering into a contract for advanced life support services York Township must first conduct a competitive bidding process as described in the Ohio Revised Code and that the contract between York Township and LifeStar is void.
{¶ 4} Contemporaneously with the complaint, Medcorp filed a motion for a temporary restraining order to prevent York Township from acting on its contract with LifeStar for the provision of advanced life support services. The trial court immediately granted the temporary restraining order enjoining York Township from further acting on its contract with LifeStar for 14 days, or until the court extended the order, and set the matter for a hearing on Medcorp's request for a preliminary injunction.
{¶ 5} York Township responded with a memorandum in opposition to the request for preliminary injunction in which it argued that Medcorp was not entitled to injunctive relief because York Township had not violated the applicable competitive bidding statute when it entered into its contract with LifeStar. More specifically, York Township asserted that because Medicare and Medicaid payments do not qualify as "operating funds from governmental entities," as that phrase is used in R.C.
{¶ 6} On May 7, 2002, the lower court held a hearing on the request for a preliminary injunction. Prior to the hearing, Medcorp filed a memorandum in support of its request and supported the memorandum with the affidavit of Anthony Anteau. Anteau, the vice president in charge of operations at Medcorp, attested that Medcorp receives more than half of its operating funds from governmental entities, especially Medicare and Medicaid, and that Medcorp receives those funds when it bills Medicare or Medicaid directly for services provided to patients who are covered by either of these programs. Based on his experience with Medcorp, the American Ambulance Association, the Ohio Ambulance Association, and as a board member of Community Health Partners, Anteau stated that he could say with a high degree of certainty that any ambulance company operating in the state of Ohio receives more than half of its funding through governmental entities, especially Medicare and Medicaid. Based on this affidavit, as well as on evidence that LifeStar is a non-profit corporation whose presence in York Township would directly compete with Medcorp, Medcorp argued in its memorandum that York Township was required to comply with the bidding requirements of R.C.
{¶ 7} At the hearing, the court initially sought arguments on York Township's motion to dismiss for failure to join a necessary party. The arguments, however, quickly shifted to the issue of the necessity of the township to follow the competitive bidding requirements of R.C.
{¶ 8} In its sole assignment of error, Medcorp challenges the trial court's denial of its request for a preliminary injunction and dismissal of its complaint.
{¶ 9} Initially, we must determine what is the appropriate standard of review to apply to the present appeal. Medcorp asserts that because the court essentially concluded that Medcorp failed to state a claim upon which relief could be granted, we must review the matter de novo. We disagree with Medcorp's assessment of the trial court's ruling.
{¶ 10} The request for an injunction differs from a regular civil complaint in that "[a]n injunction is an extraordinary remedy in equity where there is no adequate remedy available at law. It is not available as a right but may be granted by a court if it is necessary to prevent a future wrong that the law cannot." Garono v. State (1988),
{¶ 11} In the present case, the transcript from the hearing on the request for a preliminary injunction reveals that the court proceeded to review the merits of the case, neither party objected and both parties were prepared to present their arguments and evidence. The trial court's ruling must therefore be viewed as a denial of the request on its merits. The Supreme Court of Ohio has specified that "[t]he grant or denial of an injunction is solely within the trial court's discretion and, therefore, a reviewing court should not disturb the judgment of the trial court absent a showing of a clear abuse of discretion." Garono, supra at 173, citing Perkins v. Quaker City (1956),
{¶ 12} R.C.
{¶ 13} Medicaid and Medicare are two separate forms of public assistance. "The Medicaid program was established in 1965, pursuant to Title XIX of the Social Security Act,
{¶ 14} Similarly, Medicare is a federal assistance program that provides health insurance coverage to the elderly and disabled. See Section 1395-1395ccc, Title, U.S.Code. Again, however, it is the recipient's status that qualifies him or her for Medicare benefits. Absent the recipient's qualifying for benefits under the Medicare program, a medical provider has no claim for reimbursement.
{¶ 15} In our view, the benefits provided for by the Medicaid and Medicare programs belong to the individual receiving the medical care, and are simply assigned over to the medical provider, much like a standard insurance program. Accordingly, we cannot say that the General Assembly intended to include Medicaid and Medicare benefits in its use of the phrase "operating funds from governmental entities" in R.C.
{¶ 16} We therefore conclude that the trial court did not abuse its discretion in dismissing Medcorp's complaint and the sole assignment of error is not well-taken.
{¶ 17} On consideration whereof, the court finds that substantial justice has been done the party complaining and the judgment of the Fulton County Court of Common Pleas is affirmed. Court costs of this appeal are assessed to appellant.
JUDGMENT AFFIRMED.
A certified copy of this entry shall constitute the mandate pursuant to App.R. 27. See, also, 6th Dist.Loc.App.R. 4, amended 1/1/98.
Peter M. Handwork, J., Richard W. Knepper, J., and Mark L.Pietrykowski, P.J., CONCUR.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.