Defendant Indiana State Board of Health Answer to Plaintiffs' First Set of Interrogatories

     [||3fd7938b-7e7b-41a4-8979-ae35c4d92ff6||] IN THE 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF INDIANA 

HAMMOND DIVISION 

_
—
 

    
BERNICE TERRY, et al., 

  

  
METHODIST. HOSPITAL OF GARY, 

INC... et.al. 

) 
) 

Plaintiffs, ) 

) 
-vs- Y NO. H76-373 

) 
METHODIST HOSPITAL OF GARY, ) 4 

INC. , et al. ) 
) 

Defendants ) 

) 
RICHARD GORDON HATCHER, et al., ) 

) 
Plaintiffs, ) 

) No. H77-154 
-VS- ) 

) 
) 
) 
4 
) Defendants. 

DEFENDANT INDIANA STATE BOARD OF 

HEALTH ANSWERS TO PLAINTIFFS 
FIRST SET OF INTERROGATORIES 
  

Comes now the defendant Indiana State Board of Health 

and files Answers to Plaintiffs' First Set of Interrogatories. 

 



* » 

ANSWERS TO PLAINTIFFS INTERROGATORIES 

OF OCTOBER 1977 

1. No formal agreement between the Indiana State Board of Health and 

the Department of Health, Education, and Welfare in regard to the Hill-Burton 

program is available. 

The Indiana State Board of Health entered into Agreement with the 

Secretary of Health, Education, and Welfare to carry out the provisions of 

Section 1122 of the Social Security Act. (Exhibit 1, attached.) (Note: 

Includes Agreements July 1, 1973, to June 30, 1976; October 1, 1976, to 

September 30, 1977; and October 1, 1977, to September 30, 1978.) 

The agreement to establish the Indiana Health Planning Program under 

Section 314(a) was initiated by the Indiana State Board of Health in response 

to an executive order from Roger Branigan, then Governor of Indiana, to 

A. C. Offutt, M.D., then State Health Commissioner dated January 6, 1967 (a 

copy of that executive order is attached as Exhibit 2). Pursuant to that 

order, the Indiana State Board of Health submitted an application to the 

Secretary of the Department of Health Education and Welfare, for designation 

as the 314(a) agency. The Secretary designated the Indiana State Board of 

Health as the 314(a) agency. This process was repeated every year until the 

314(a) program was terminated in 1976. 

The agreement to establish state level health planning under Titles XV 

and XVI of the Public Health Service Act was accomplished in 1976 when as a 

result of submitting an application, to the Secretary for designation as a 

state agency (copy attached as Exhibit 3), a designation agreement was received 

and signed by Otis R. Bowen, M.D., Governor of Indiana (a copy of the designation 

agreement is attached as Exhibit 4). The designation was achieved in July 1977 

for the second year when a second designation agreement from the Secretary was 

received and signed by Governor Bowen (copy attached as Exhibit 5). 

2. In regard to the Hill-Burton Program the Indiana State Board of 

Health recommends the approval of projects to the Department of Health, Education, 

and Welfare for the allocation of Hill-Burton funds based upon priorities 

established in the State Hill-Burton Plan. It monitors the construction phase 

of the project and the post-construction provisions of uncompensated care to 

the needy. 

For description of functions, responsibilities, and obligations of 

the Indiana State Board of Health pursuant to any agreements and contracts 

with federal agnecies pertaining to Section 1122, Section 314 of the Public 

Health Service Act, and Titles XV and XVI of the National Health Planning and 

Resources Development Act of 1974 refer to the several agreements between the 

Indiana State Board of Health and the Secretary of Health, Education, and 

Welfare as per attachments referenced in answer #1 above and the DPA Manual, 

March 1974, as issued by the Division of Comprehensive Health Planning, Department 

of Health, Education, and Welfare.  



* » 

The functions, responsibilities, and obligations of the Indiana 

State Board of Health as the State Agency under Title XV and XVI of the Public 

Service Act as defined by law and regulations are described in: 

Section 1511(b) (2) 

Section 1513(e) (2) 

Section 1521(b)(1l) & CFR 42:123 & CFR 42:123,106 & 

CPR 42:123.202 and CFR 42:123.204 

Section 1522(b) & CFR 42:123.104(a) & (b) and The 

Indiana Open Door Law (S.B. 83, 'P.57, Acts of 1977) 
Section 1523(a) & CFR 42:123.106(b) 

Section 1532(a) 

Section 1601 

Section 1602(1)(A)(B)(C)(D)(E) 
Section 1603 

Section 1604(a) 

(b) (1) (A) (B)(C)(G) 
Section 1611(a)(b)(1)(2) 

Also under 

CFR42:123.103(f) 

CFR42:123.104(b)(3)(17) 

CFR42:123.204(b) (2) 

CFR42:123.206 

Section 5 (c) 

3. There are no known relevant delegations of functions, responsiblities, 

and obligations per se regarding matters connected with these interrogatories. 

4. Attached as Exhibit 6 are two pages of instructions to applicants 
entitled, "Requirements and Procedures Relative to the Construction of Health 

Facilities in Indiana Part A, Requirements for Applicants for Federal Funds" 

which are used to advise potential applicants for Hill-Burton funds of the 

application deadline and of general requirements to be met. Attached as 

Exhibit 7 are two pages of instructions entitled "Requirements and Procedures 

Relating to the Construction of Health Facilities in Indiana-Part B-Development 

and Processing of Project Programs and Plans" which are used to advise applicants 

with construction projects of the procedures to follow when processing architec- 

tural plans and in the development of the program of operation. A "Summary of 

Indiana's Program under P.L. 88-443 and P.L. 88-164 Federal Grant-in-Aid 
Facility Constructions Programs" describes briefly pertinent information about 

the federal grant-in-aid health facility construction programs (copy attached 

as Exhibit 8). These three guidelines were issued by the Division of Hospital 

and Institutional Services of the Indiana State Board of Health. Enclosed 

also is a booklet entitled "Hill-Burton Aid for Building and Modernizing 

Community Health Facilities'" which further describes the Hill-Burton grant and 

loan program Exhibit 9. This booklet is issued by the Department of Health, 

Education, and Welfare, Rockville, Maryland.  



® ® 

For Section 1122, refer to materials identified as attached in item 

##1 above. 

All functions relative to 314(a) were carried out under the guidance 

established in Section 314(a) of P.L. 89-749 under Regulations for 314(a) 

agencies, in Federal Register CFR 42-51, and in "A" agency performance standards. 

CHP Program Letter 74-02, dated 12 December, 1973 (copy attached as Exhibit 10). 

The activities and functions of Titles XV and XVI of the Public 

Health Services Act are carried out under the guidelines established in the 

Act (P.L. 93-641), and regulations in the Federal Register dated June 3, 1976, 

CFR 42:123 (Interim Regulations for Designation and Funding of State Agencies); 

and Capital Expenditures Review, Certificate of Need, and Review of New 

Institutional Health Services. 

5. See IC 16-1-8, 1C 16-2-1, and -1C 5-19-1. Also, for Section 1122, 

authority of the Indiana State Board of Health to fulfill its health facilities 

construction responsibilities under Section 1122, see Exhibit 1. 

6. The Hill-Burton plan (the Indiana Hospital and Health Facilities 

Plan) which was originally prepared in 1947 and updated annually by the Indiana 

State Board of Health and approved by the Department of Health, Education, and 

Welfare through the 1972-1973 issue, was consistently developed through changing 

federal guidelines and new periodic health facility data. "Health service 

areas'" (geographical areas) were determined in various ways to serve the 

population of the state. From approximately the mid-1960s through the 1973 plan, 

the health service areas were developed in relationship to studies of origin 

of hospitalized patients. This provided information on the flow of patients 

from their places of residence to community hospitals and provided information 

to identify boundaries for these health service areas. 

With the advent of the 314(b) agencies (the Comprehensive Health 

Planning Agencies) consideration for revisions of health service areas were 

given to either their recommendations or accomplished with their knowledge and 

approval. This would be reflected in the plan of 1975-1976. (See Exhibit 11.) 
While operating under Section 314 of P.L. 89-749, the State Board of Health 

encouraged groups planning to establish 314(b) agencies to use the fourteen 

(14) planning and development regions established by the Governor's Executive 

Order 18-68 (copy attached as Exhibit 12). These fourteen (14) planning areas 

were broad areas within which health service areas were identified. 

After the enactment of P.L. 93-641, the State Board of Health provided 

staff assistance to the Governor who designated "health service areas' meeting 

detailed requirements of that law. The Governor's designation was described 

in the Indiana Health Service Area Designation Plan (Exhibit 13). The plan 

includes information about some alternatives considered, organizations consulted, 

etc. The Secretary of Health, Education, and Welfare accepted the Governor's 

designations and established the areas by publication of a notice in the 

Federal Register.  



» N 

A map is attached (Exhibit 14) which shows the P.L. 93-641 health 

service areas and subareas. Under P.L. 93-641, decisions were made by the 

respective health systems agencies regarding establishment of subareas and 

their composition. 

fo The Northern Indiana Health Systems Agency, Inc., (NIHSA) is a 
nonprofit private corporation. NIHSA submitted an application for designation 

and funding to the Secretary of Health, Education, and Welfare. The Secretary 

approved the application and awarded federal funds to the Agency. There are 

no "state authorities" for operation of the health systems agencies. 

The Indiana State Board of Health is a unit of state government 

established in accordance with the state law. The Board of Health was designated 

by Executive Order 6-76 (Exhibit 15) as the Indiana Health Planning and 
Development Agency, commonly referred to as the State Agency (P.L. 93-641, 

Section 1521). 

The State Board of Health has no authority over NIHSA, as the State 

Agency or in any other capacity. P.L. 93-641 requires that state agencies 

consider recommendations of health systems agencies in some circumstances. 

Attached as Exhibit 16 is a pamphlet entitled "Agency Relationship under 

P.L. 93-641" published by Midwest Center for Health Planning, which gives an 

interpretation of many of the relationships among health systems agencies, 

state agencies, and statewide health coordinating councils. Information about 

statewide health coordinating councils is contained in Section 1524 of 

P.L. 93-641. 

NIHSA is neither "an advisory council" nor a ''government council." 
It has no "government" functions or status. As a private corporation it has a 

board of directors referred to in the law as ''governing body." The word 

""'governing' applies to responsibility for operation of the agency. See P.L. 
93-641, Section 1521(b)(3). The NIHSA Board of Directors or governing body 

sometimes is referred to as a "council." We are not aware of any law, regulation, 

or general usage which would classify health systems agencies' governing 

bodies as "advisory councils." 

Authoritative information about the "program responsibilities" of 

health systems agencies under P.L. 93-641 is contained in Sections 1512 and 1513. 

Similar information regarding state agencies appears in Section 1521 and 1523. 

Since the health systems agencies and state agencies have many common interests 

they use joint committees to coordinate some health planning work. 

Applications concerning health facility proposals are received and 

recommendations made under the Hill-Burton Program in accordance with federal 

regulations. In Indiana the agency responsible for administering Hill-Burton 

funds is the State Board of Health. The Division of Hospital and Institutional 

Services of the State Board of Health annually developed a State Hospital Plan 

which indicates the need for hospitals and related facilities. Projects are 

recommended for aid in accordance with the State Plan and priority schedules 

by a State Advisory Council and the State Board of Health. Each year a letter 

was sent to administrators of hospitals and health facilities in Indiana 

soliciting interest in Hill-Burton funds for the current year. Funds are 

available for construction of hospitals, public health centers, long-term care  



facilities, rehabilitation facilities, outpatient facilities, and for moderniza- 

tion of hospitals. Each State annually elects the basis for determining the 

federal share for projects during the ensuing fiscal year. This share may 

vary between one-third and two-thirds of the total eligible cost of the project. 

Indiana has elected to establish the rate of federal participation at 33 1/3 

percent of the estimated eligible cost of the project for all categories 

except the outpatient and rehabilitation categories which have been established 

at 50 percent. The State Plan which is revised annually includes an inventory 

of all facilities in the eligible categories. The classification of beds into 

"conforming" or "nonconforming' is based on a modernization survey of all 

facilities in the State in 1965 and 1966 and updated upon the "as needed" 

basis since that time. Priorities which are developed for each category serve 

as the basis for recommending approval of an application by the State Hill-Burton 

Advisory Council to the Executive Board of the Indiana State Board of Health 

which in turn makes recommendations to the Department of Health, Education, 

and Welfare, the final approval authority. 

The Indiana State Board of Health routinely requests the approval or 

nonapproval recommendations on health facilities from each of the three Indiana 

Health Systems Agencies, including the recommendations of the Northern Indiana 

Health Systems Agency, in compliance with P.L. 92-603, Section 1122(d) (ii) (I). 

and related Rules and Regulations under Title 42, Chapter I, Part 51, Part 100, 

Section 100.104(1i). 

Section 1122 applications are processed and recommendatons are 

received in accordance with federal rules and regulations under Title 42, 

Chapter I, Part 51, Part 100--Cost Containment and Quality Control and the DPA 

Manual, March 1974, by the Division of Comprehensive Health Planning, Department 

of Health, Education, and Welfare. 

7a. The Indiana State Board of Health, acting as the Designated Planning 

Agency (DPA), does not make decisions in either the Section 1122 or the 

Hill-Burton Program. The DPA only makes recommendations to HEW. 

8. Yes. 

8a. HEW found the existing Indiana program to be in conformance with the 

requirements of Title XV of the National Health Planning and Resources Development 

Act of 1974. See Exhibits 4 and 5. 

9. Assurances and methods of administration between the Indiana State 

Board of Health and the Department of Health, Education, and Welfare pertaining 

to the Hill-Burton Program under P.L. 88-443 as amended by P.L. 91-296 are 
contained in the Indiana Hospital and Health facilities Plan, 1972-73. (Copy 

attached as Exhibit 17.) A copy of each State Plan which was prepared or 

revised annually since 1946, and may be on file with the Department of Health, 

Education, and Welfare. A copy of the State Plan for 1976-77 submitted by the 

Department of Mental Health to the Department of Health, Education, and Welfare 

under which the Indiana State Board of Health has responsibilities under 

P.L. 88-164 as amended by P.L. 91-517 is attached as Exhibit 18. State Plans 

for previous years may be on file with the Department of Health, Education, 

and Welfare.  



* » 

10. Attached herewith, as Exhibit 19, is the complete organizatonal 

structure of the Indiana State Board of Health. Sections Bl and B2 reflect 

the organizational status of the units which presently handle Section 1122 and 

the Hill-Burton Programs, together with the involvement in Title XV and 

Section 504. 

11. i See Exhibit 19. 

12. See Exhibit 19. 

13. Exhibit 19 lists the name and the job title or position for each of 

the individuals therein noted. Records are not available, without personal 

interviews, on race, national origin, and sex. Objections filed to the question 

itself on the grounds that it is not material to the issues at hand. 

All of the individuals listed are merit employees, employed pursuant 

to the Indiana Personnel Act (IC 4-15-2). 

14. We are unaware of whether any present or former members or employees 

of the Indiana State Board of Health, its divisions or bureaus, members of 

their families or business associates have ever served in any capacity on a 

board or other division of The Methodist Hospital of Gary, Inc. Since the 

creation of the Indiana State Board of Health in 1945, only one physician from 

the Lake County area has served on the Board. This individual, now deceased, 

served in 1945 and no records are available to determine whether or not he had 

staff privileges. The only present member of the Board from the Lake County 

area 1s a practicing dentist, and we understand that he does not have staff 

privileges. 

15. The members of the Indiana State Board of Health are selected by the 

Governor pursuant to Indiana Code 16-1-36-1. 

All other employees of the State Board of Health, with the exception 

of the Secretary (State Health Commissioner) who is appointed by the Governor 
upon the recommendation of the Board, are merit employees employed pursuant to 

the State Personnel Act (IC 4-15-22). All jobs within the merit system have 
job descriptions with minimum qualifications for each job. Information on job 

description, etc., is so voluminous for the employees involved that objections 

are filed to the request made on the basis of lack of materiality and the 

inability to readily obtain same. 

16. See Answer #7 relative to procedures, standards, and guidelines. 

17. . See Exhibits 6, 7, 8, and 9, 

18. We object to the question as raised as it is not pertinent and 

places an impossible burden to comply considering the actual information 

presently available and the time restraints placed upon us. However, since it 

is our personal recollection that almost all hospitals within the state excluding 

federal facilities have been subjected to state review on one or more occasions 

during the period, a copy of the current hospital directory is attached and 

marked as Exhibit 20.  



19. Hospital projects listed in Exhibit 20 which involved a relocation 

of an existing hospital include Parkview Hospital, Fort Wayne, St. Joseph 

Hospital, Huntingburg, St. Vincent Hospital, Indianapolis, South Bend 

Osteopathic Hospital, South Bend, and Wirth Hspital, Oakland City. Projects 

which involved the construction of a new hospital not within the City of Gary 

by a corporation which operates a hospital within the City of Gary include the 

Broadway Methodist Hospital, Merrillville, and St. Mary Medical Center, Hobart. 

New hospitals constructed outside the City of Gary by a corporation which does 

not operate a hospital within the City of Gary include, within the past 15 years, 

the following Indiana Hospitals: North Clark Community Hospital, Charlestown; 

Jennings Community Hospital, North Vernon; Kosciusko Community Hospital, 

Warsaw; Community Hospital, Munster; St. Anthony Hospital, Crown Point; LaPorte 

Hospital, LaPorte; Bedford Medical Center, Bedford; Community Hospital, 

Indianapolis; Westview Osteopathic Medical Hospital, Indianapolis; Winona 

Memorial Hospital, Indianapolis; Warrick Hospital, Boonville. 

20. The Indiana State Board of Health received assurances from applicants 

for federal construction funds under the Hill-Burton Program and transmits 

them to the Department of Health, Education, and Welfare for review for compliance 

with Title VI of the Civil Rights Act of 1964. 

In the review of the projects for Section 1122 purposes, the State 

Agency complies wth the criteria as set forth by the Department of Health, 

Educaton, and Welfare in its Rules and Regulations, Title 42, Chapter 1, 

Part 51, Part 100, Section 100.107, and its '"Mandated Review Criteria" as 

recorded in the DPA Manual, March 1974, by the Division of Comprehensive 

Health Planning, Department of Health, Education, and Welfare. The State 

Agency is not in a position to comment on the review process of the Department 

of Health, Education, and Welfare. (Refer to Exhibit 1.) We object to the 
last part of this interrogatory on the grounds that it is not germane to the 

issue involved and this is impossible with the records available and time 

constraints placed upon us to adequately respond. 

  

21. In determining the needs of the population identified in the Indiana 

Hospital and Health Facilities Plan, 1972-1973, the state agency utilized the 

methodology as prescribed and later approved by the Department of Health, 

Education, and Welfare. Briefly, the state agency received both the maximum 

current and projected state population estimates as supplied (annually) by the 

Bureau of Census. The state agency utilized this data by allocating this 

maximum population data to the several designated health service areas in the 

state. The health service areas were determined through a study of hospital 

patients. This detailed distribution was accomplished with the assistance of 

the Public Health Records, Division of the Indiana State Board of Health. The 

federal directive required consideration for primarily two groups of population 

in each area, which called for the total population for programming general 

acute health facilities and age 65 and over population for programming long-term 

care facilities. 

These area population designations were then used in conjuncton with 

the prescribed Hill-Burton formula in determining the facility needs for each 

health service area.  



For population distribtion within the Indiana Hospital and Health 

Facilities Plan, 1975-1976, refer to its Chapter III, page 11, provided in 

Exhibit 11. 

It should be noted that where the need of a population group is 

determined to be other than what the Hill-Burton formula provides and where 

this need is based upon local study by a recognized professional consultant 

agency and/or by a local planning agency, the state agency, in compliance 

again with federal guidelines, considers such programming when requests and 

recommendatons are made to include such. Where such variance occurs, the 

federal guidelines require that the state agency so identify this depature 

from regular formula programming. 

22. See the plans referred to in Answer #9. 

In determining the needs of population groups within the several 

health service areas within the state, a Hill-Burton plan was originally 

developed in 1947 and has been upgraded annually in accordance with changing 

federal guidelines and new raw data findings. Each plan was properly reviewed 

and brought to the public's attention prior to final state's submission to the 

Department of Health, Education, and Welfare for its final review and approval. 

All plans developed between 1947 and 1973 were so approved by DHEW. 

The 1975-1976 plan was not reviewed for approval by the Department of Heath, 

Education, and Welfare although copies are on file with that agency. 

23. The ISBH attempts to comply with all legal federal and state mandates 

in this area. 

24. At the present time, the State of Indiana does not have a certificate- 

of-need program. 

25. . Yes. 

26. See Exhibit 21. 

See Exhibit 22. 

27. See Exhibits 23 and 24. 

28. The information requested is not readily available within the State 

Board of Health; the Northern Indiana Health Systems Agency should be able to 

provide this information. 

29. The Hill-Burton Project proposals submitted by the Methodist Hospital 

of Gary since 1970, together with all related correspondence and minutes of 

meetings are included herewith as follows: Broadway Methodist Hospital, 

Project No. 189 (original construction) (Exhibit 25); Broadway Methodist 

Hospital, Project No. 213 (proposed expansion) (Exhibit 26); Methodist Hospital 
of Gary, Project No. 212 (proposed expansion) (Exhibit 27); Hill-Burton Advisory 
Council minutes dated December 18, 1974, November 29, 1972, December 1, 1971, 

November 18, 1970, October 8, 1969 (Exhibit 28).  



29. Copies of all Section 1122 applications and related documents from 

and on Methodist Hospital of Gary, Inc., and Broadway Methodist Hospital from 

1970 to present time are provided under identified exhibits: 

A. ID No. 18-4-0053 (submitted May 29, 1974) (Exhibit 29). 

Methodist Hospital of Gary, Inc. A new building containing ICU/CCU, 

ambulatory care service, family practice residency area and hospital-based 

physician offices. 

Broadway Methodist Hospital. Containing an ambulatory care center, 

an admitting center, a patient health education area, a hospital-based 

physician office, and a building containing a modern laundry plant. 

Note: This application became void on July 28, 1975. 

ID No. 18-6-0083 (Submitted June 23, 1976) (Exhibit 30). 

Methodist Hospital of Gary, Inc. Health Service Building. 

Broadway Methodist Hospital. Health Service Building and Laundry. 

Date of final state finding September 14, 1976. 

ID No. 18-7-0103 (Submitted May 2, 1977) (Exhibit 31). 

Methodist Hospital of Gary, Inc. Addition of Ultrasound Service. 

30. Names of members of the Hill-Burton Advisory Council are listed in 

the minutes of attachments to interrogatory 29. Employees of the Indiana 

State Board of Health who worked on the projects are: Mr. Robert Rogers, 

Director, Division of Hospital and Institutional Services (now retired); Mr. 

Frank Sherer, Hospital Administrative Consultant, who worked on the processing 

of the applications (now retired); Mr. James L. White, Hospital Administrative 

Consultant, who worked on the processing of the applications; Ms. Janet Craig, 

Director, Division of Hospital and Institutional Services, worked on architectural 

plans and program of operation; Mr. Vernie Swanson, Engineer, worked on archi- 

tectural plans, equipment lists, and bid documents (now retired ); Mr. Corwin 

Weaver, Auditor, audited invoices and other financial documents on project 

No. 189; Mr. Gerald T. Cravey, Engineer, worked on architectural plans and bid 

documents; Ms. Thelma E. Jordan, Hospital Administrative Consultant, worked on 

architectural plans; Mr. Steven F. Mann, Administrative Officer, Comprehensive 

Health Planning Review (has terminated employment at Indiana State Board of 

Health); Mr. Jack I. Cohen, Administrative Officer, Section 1122 Program has 

terminated employment at Indiana State Board of Health). 

Employees and staff of the Indiana State Board of Health who were 

involved in various ways on the Section 1122 applications are identified in 

materials submitted for Answer 29.  



ID. No.  18-4-0053. 

Steven F. Mann, Hospital Administrative Consultant. Functioning 

as project review officer in processing Section 1122 applications. 

(No longer employed.) 

Jack I. Cohen, Administrative Officer. Functioning as a project 

review officer in processing Section 1122 applications. (No 

longer employed.) 

Robert L. Rogers, Director, Division of Hosital and Institutional 

Services. Involved in hospital licensure, the Hill-Burton 

program, and review of hospital projects within the Section 1122 

program. (No longer employed.) 

Richard E. Thompson, Director, Comprehensive Health Planning. 

(No longer employed in that capacity.) 

Miss Thelma E. Jordan, Hospital Administrative Consultant. 

Reviews hospital projects relative to licensure compliance in 

terms of architectural and construction programs as well as 

Section 1122 applications. 

David J. Edwards, M.D., Administrator, Hospitals and Health 

Facilties Programs. Assisted in administrative processing of 

Section 1122 applications. Currently employed as Director, 

Bureau of Health Facilities, Services, and Resources Development. 

(In charge of entire Section 1122 program and health resources 

development as of September 5, 1976.) 

Arthur E. Hasse, Director, Health Facilities and Services 

Review Division. (Administration of the Section 1122 program 

as of September 5, 1976.) 

Only additional new names will be identified in the following projects: 

ID No. 18-6-0083 

8. 

9. 

William D. Christen, Hearing Commissioner. 

Deloris Wakefield, Project Review Officer, assigned to processng 

Section 1122 applications received in Northern Indiana Health 

Systems Agency. (Employed as of June 7, 1976.) 

Lee E. Cloe, Ed.D., Director, Health Plan and Program Development 

Division. (Develops special health facility and service criteria 

and services and reviews selected hospital project applications.) 

Janet A. Craig, Director, Hill-Burton Program and Director, 

Hospital and Institutional Services Division. (Replaced 

Mr. Robert L. Rogers identified in A.3 above.) 

William T. Paynter, M.D., State Health Commissioner, Indiana 

State Board of Health.  



13. Mr. James White, Hospital Administrative Consultant, Division 

of Hospital and Institutional Services. Currently Director of 

Health Resources Development Division. 

31. Not to our knowledge, as it is not our policy. 

32. No special studies, reports, and recommendations were made for the 

Indiana State Board of Health in connection with the proposals for construction 

and/or expansion of Broadway Methodist Hospital. Routine studies and analysis 

of data collected were made and is included in the applications under interrogatory 29. 

33. Refer to answer to interrogatory 32 above. The staff person most 

knowledgeable about the situation would be Mr. Robert L. Rogers, Director, 

Division of Hospital and Institutional Services (not currently employed by 

this agency). 

34. a. Refer to Exhibit 30, labeled Application 18-6-0083; materials 

submitted by Northern Indiana Health Systems Agency, Inc., dated 

September 7, 1976, Lee E. Cloe, Ed.d., review dated July 28, 

1976. 

See answer to #31. 

The Section 1122 application was subjected to routine and 

careful review similarly as are all Section 1122 applications. 

Confirmation by members of the Indiana State Board of Health of 

recommendations made was unanimous in all cases. 

From personal recollection, this information would have been in 

the so-called "Hamilton Report" which was the basis of the 

local agency's report. We cannot locate a copy of said report. 

f. Unaware of what 'conclusions'" are required. 

35. (a-e) In reply to this interrogatory both Methodist Hospital of Gary 

and St. Mary Medical Center of Gary, have made agreements with the Office of 

Civil Rights, Region V, prior to their expansion programs. The Indiana State 

Board of Health was not a party to and was not provided a copy of such agreements. 

Since ongoing surveillance for compliance was conducted by the Office of Civil 

Rights, the State's role in the collection of Civil Rights information was 

minimal (see Civil Rights Information on Broadway Methodist Project No. 213 

under interrogatory 29). 

36. Refer to answer #35. 

37. Based upon the information given in the applications and recommenda- 

tions made by the local planning councils for Hill-Burton assistance the 

Indiana State Board of Health does not anticipate a reduction of services to 

the lower income, racial minority, and/or handicapped residents of Gary and 

has recommended approval of federal construction funds amounting to $2,727,000 

to improve hospital facilties in the City of Gary.  



38. See answer #35. 

39. The Hill-Burton applications submitted for the construction and/or 

expansion of Broadway Methodist Hospital required recommendations from the 

Northwest Indiana Comprehensive Health Planning Council and later the Northern 

Indiana Health Systems Agency and their recommendations together with the 

financial and other data submitted by the applicant were considered by the 

Indiana State Board of Health in making its recommendation. 

40. No specific comments noted in the files. 

41. See Answer #8 and exhibits supplied in connection with that answer. 

42. The Indiana State Board of Health did develop and/or recommend use of 

plans, standards, or guidelines for health planning for the Northern Indiana 

Health Systems Agency area. The response to question #2 provides more information. 

It also, as described in the answer to question #6, provided staff 

assistance in the process of area designation. 

It also, as described in the answers to questions #9, and 21, developed 

plans for health facilities for the area. 

Specific information requested follows or its location is cited by 

reference: 

(a) See Answer {}6. 

See Answer #6. 

See Answer 6. 

See Answer #6. 

See Answer #6 and the Indiana Health Service 

Area Designation Plan. 

See the Indiana Health Service Area Designation Plan referred to 

in Answer #6. 

 



  

STATE OF INDIANA ) 
8S: 

COUNTY OF MARION ) 

RICHARD E. THOMPSON, being first duly sworn upon 

his oath deposes and says: 

That he is the Planning Coordinator, of the Indiana 

State Board of Health; that the above answers to Interrog- 

atories were prepared at his specific direction and request 

on behalf of Defendant, Indiana State Board of Health; and 

that they are true and correct to the best of his knowledge 

and belief. 

Wa ED, 
Ric¢hard E. Ed 
  

SUBSCRIBED AND SWORN to before me, a Notary Public 

in and for said County and State, this 31st day of October, 

1977. 

  

rah] or ’ : 

\ AM ES on z 

Aotary Public 

My Jramission Expires: 

rh 

nds; LG JD 
V4 

  

THEODORE L. SENDAK 
Attorney General of Indiana 

Fre B Seva 
  

Eric B. Servaas 
Deputy Attorney General 

 



  

IN THE 

UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF INDIANA 

HAMMOND DIVISION 

  

BERNIECE TERRY, et al., 

Plaintiffs, 

-vS- NO. H-76-373 

METHODIST HOSPITAL OF GARY, 
INC. "et al. 

Defendants. 

RICHARD GORDON HATCHER, et al., 

Plalnuiils. 

NO. H 77-154 

METHODIST HOSPITAL OF GARY, 

ING. “et aly, 

Defendants. 

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CERTIFICATE OF SERVICE 
  

I hereby certify that a copy of defendants' Indiana State 

Board of Health, Answers to Plaintiffs' First Set of Interrogatories 

was served by United States Mail, postage prepaid, on the 3lst 

day of October, 1977, on counsel of record as follows: 

Rebecca L. Ross, Esq. Anthony DeBonis 
Dept. of Justice 720 West Chicago Avenue 
10th & Penn. Ave. N.W. East Chicago, Indiana 
Washington,D.C. 

Julian B. Allen Bruce E. Sayers 
2009 Broadway 5525 Broadway 
Gary, Indiana 46407 Gary, Indiana 

THEODORE L. SENDAK 
Attorney General of Indiana 

LJ 
  

Eric B. Servaas 
219 State House Deputy Attorney General 
Indianapolis, Indiana 46204 
Telephone (317) 633-6268 [||3fd7938b-7e7b-41a4-8979-ae35c4d92ff6||]