BALTIMORE March 3, 2011 Congratulations to Gallagher client Holy Cross Hospital of Silver Spring for recently being awarded a Certificate of Need, authorizing Holy Cross to build the first new hospital in Montgomery County in more than 30 years.

Approval of the Holy Cross new hospital project followed a thirty month process in which the Maryland Health Care Commission chose between competing proposals from Holy Cross and Adventist HealthCare, which were both seeking to build a new hospital in Montgomery County.

Gallagher lawyers Jack Tranter and Phil Diamond represented Holy Cross before the Maryland Health Care Commission.

Holy Cross filed a letter of intent with the Commission on August 1, 2008, advising that Holy Cross intended to file a CON application proposing to construct a new hospital on Montgomery College campus in Germantown. Because Adventist did not file a letter of intent by this deadline, the Commission could only consider the Holy Cross new hospital proposal. However, Holy Cross agreed to a comparative review so the Commission could consider both new hospital proposals.

Following seven days of evidentiary hearings, focusing on financial viability, cost-effectiveness, and accessibility, Marilyn Moon, PhD, the Commission member/reviewer in this case, issued a Recommended Decision asking the Commission to approve the Holy Cross proposal and concluding that "HCH has made a stronger case than [Adventist] with respect to bed need, the cost and effectiveness of project alternatives, and viability of the project…. it has a track record that is equal to or better than that of the [Adventist] hospitals with respect to quality of care, community benefits, and efficient and effective management…"

Adventist filed exceptions challenging Dr. Moon's findings and recommendation and asked the Commission to delay making a final decision in this case so the record could be reopened to consider more evidence. In their responses to the exceptions Mr. Tranter and Mr. Diamond described the Adventist challenges as "mostly a restatement of arguments previously made and appropriately rejected" and characterized the 104 pages of exceptions as "having more heft than substance."

On January 21, 2011, after hearing oral argument on the Adventist exceptions, the Commission unanimously adopted Dr. Moon’s Recommended Decision and issued a CON authorizing Holy Cross to build a new hospital in Montgomery County.

Gallagher is proud of its role in helping Holy Cross further its mission of delivering high quality care to the residents of Montgomery County. The new hospital in Germantown on the campus of Montgomery College will offer medical/surgical, obstetric, and psychiatric inpatient care. Emergency and outpatient services will be provided as well. An impact study projects that the hospital will create more than 5,700 jobs, the majority of which would be in Montgomery County.

About Gallagher
Founded in 1961, Gallagher Evelius & Jones LLP is a Baltimore-based law firm focusing on health care, litigation, real estate and business transactions, tax, bankruptcy and creditors' rights, employment, education, affordable housing, and nonprofit matters. The firm has more than 40 lawyers serving institutional, corporate, and tax-exempt organizations throughout Maryland and the nation.