Answer to Amended Complaint

     [||a654db5d-0342-40fd-bb81-d91d706334d4||] IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF INDIANA 

HAMMOND DIVISION 

  

BERNICE TERRY, et al., 

Plaintiffs, 

Vv. Civil No. HE 76-373 

METHODIST HOSPITAL OF GARY, INC., 

et al., 

Defendants. 

  

ANSWER TO AMENDED COMPLAINT 
  

Defendant Joseph Califano, Secretary of Health, Education 

and Welfare (sometimes referred to as the federal defendant), 

by his undersigned attorneys, hereby answers the Amended 

Complaint as follows: 

First Defense 
  

Plaintiffs have failed to exhaust their administrative 

remedies. 

Second Defense 
  

The Court lacks jurisdiction over the subject matter 

of the action. 

Third Defense 
  

The Amended Complaint fails to state a claim upon which 

relief can be granted. 

Fourth Defense 
  

In answer to the numbered paragraphs of the Complaint, 

the federal defendant admits, denies and alleges as follows: 

1. This paragraphs contains plaintiffs' characterization 

of its action to which no answer is required, but insofar as 

an answer may be deemed required, deny. 

2. This paragraph contains conclusions of law and not 

averments of fact to which an answer is required, but insofar 

as an answer may be deemed required, deny.  



  

3. The federal defendant is without knowledge or infor- 

mation sufficient to form a belief as to the truth or falsity 

of these statements. 

4, The first two sentences of this paragraph contain 

plaintiffs' characterization of this action to which no 

answer is required, but insofar as an answer may be deemed 

required, deny. The remainder of the paragraph contains 

conclusions of law and not allegations of fact to which an 

answer is required, but insofar as an answer may be deemed 

required, deny. 

5. Deny first sentence except to admit that Methodist 

Hospital of Gary, Inc. is a not-for-profit corporation orga- 

nized under the laws of the State of Indiana which currently 

operates a 1l65-bed facility in Merriville and affirmatively 

allege that HEW figures from November 1976 show that the hos- 

pital operates a 385-bed facility in the city of Gary. Deny 

the second sentence except to admit that Methodist Hospital 

of Gary, Inc. is a recipient of federal funds under the Hill- 

Burton Act and the Medicare and Medicaid programs. The third 

and fourth sentences are admitted. 

6. Admit. 

7. The federal defendant is without knowledge or infor- 

mation sufficient to form a belief as to the truth or falsity 

of this allegation. 

8. Admit first sentence. Deny second sentence except 

to admit that Gary is the largest city in Lake County. Deny 

second sentence and affirmatively allege that although Gary 

had a population of 175,415 according to the 1970 census, it 

has a population of 167,546 according to the 1975 census, and 

further affirmatively state that in 1970. the population of 

the City of Gary was 52.8% Black and 9.4% Hispanic.  



* * 

9. The federal defendant is without knowledge or infor- 

  

mation sufficient to form a belief as to the truth or falsity 

of the allegation contained in the first sentence. Admit the 

second sentence. Deny the third sentence. The federal defen- 

dant lacks knowledge or information sufficient to form a be- 

lief as to the truth or falsity of the allegations contained 

in the fourth sentence. Admit the last sentence. 

10. Deny the first sentence. Deny the second sentence 

except to admit that Methodist Hospital built a hospital in 

Broadway in Merriville, Indiana. Admit the third and fourth 

sentences. 

ll. Admit the first sentence. Deny the second sentence. 

12. Deny except to admit that the Broadway facility 

located in Merriville, Indiana has a small minority population 

and that the linear acceleration is located only at Broadway. 

The federal defendant is without knowledge and information 

sufficient to form a belief as to the truth or falsity of the 

allegations concerning the location of handicapped persons in 

South Lake County. 

13. Deny and affirmatively allege that Methodist Hospital 

of Gary, Inc. received a grant of $1,152,527, a guarantee on 

a loan of $14,336,193.12 and an interest subsidy of $6,032,555.54. 

14. Deny. 

15. Admit first sentence. Deny second sentence and 

affirmatively allege that the 1976 application requested 

$3,281,370 for a health services building at Gary, $3,599,800 

for a health services building at Merriville, and $1,262,200 

for a laundry at Merriville which will serve both facilities.  



* * 
16. Admit the first sentence. . Deny the second sentence 

  

except to admit that a letter from Mr. Clarence Wood raised 

the issue of inferior health care to the poor and minority 

persons of Gary. Deny the last two sentences and respectfully 

refer the Court to the letter from Alfred Sanchez dated October 21, 

1976 with attachment labeled Hill-Burton Applications of the 

Methodist Hospital, Inc. for a full statement of its terms and 

qualifications. 

17. Admit the first sentence. Deny the second sentence. 

18. Deny and affirmatively allege that none of the named 

plaintiffs wrote objections to HEW. 

19. Deny. 

20. Deny. 

21. This paragraph contains plaintiffs' prayer for relief 

to which no answer is required. | 

The federal defendant hereby specifically denies all of 

the allegations of the Complaint not hereinbefore otherwise 

  

  

answered. 

Respectfully submitted, 

BARBARA ALLEN BABCOCK 

Assistant Attorney General 

RICHARD L. KIESER 

United States Attorney 
OF COUNSEL: 

JEFFREY CHAMPAGNE 

U.S. Department of Health, 
Education and Welfare FRED W. GRADY 

Assistant United States Attorney 

  

MARVIN G. GARVIN 

Regional Attorney 

EDWARD L. KOVEN 

Assistant Regional Attorney DENNIS G. LINDER 
Department of Health, 

Education and Welfare 
300 South Wacker Drive 
18th Floor 

  

  

Chicago, Illinois REBECCA L. ROSS 

Attorneys for Defendant 
Attorneys, Department of Justice 
Washington, D. C. 20530 

Telephone: 739-4267 [||a654db5d-0342-40fd-bb81-d91d706334d4||]