Answer of Joseph Califano

     [||60919b5a-2956-406a-af40-b322201e0a48||] IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF INDIANA 

HAMMOND DIVISION 

  

  

RICHARD GORDON HATCHER, et al., 

Plaintiffs, 

Vv. Civil No, 8 77-154 

METHODIST HOSPITAL OF GARY, INC., 

ak al. , 

Defendants. 

  

ANSWER .   

Defendant Joseph Califano, Secretary of Health, Education 

and Welfare (hereinafter sometimes referred to as the federal 

defendant) by his undersigned attorneys hereby responds to the 

Complaint as follows: 

Pirst 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 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 first four sentences of this paragraph contain 

plaintiffs' characterization of this action to which no answer 

deny. The remainder of the paragraph contains conclusions of 

law and not allegations of fact to which an answer is reguired, 

but insofar as an answer may be deemed required, deny. 

4. Admit the first and third sentences. The federal 

defendant is without knowledge or information sufficient to 

form a belief as to &he truth or falsity of the allegations 

contained in the ‘second and fourth sentences. Deny the fifth 

and sixth sentences. 

5. The federal defendant is without knowledge or infor- 

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

of the allegations contained in the first, second and third 

sentences. Deny the fourth sentence. 

6. Deny the last sentence. The federal defendant is 

without knowledge or information sufficient to form a belief 

as to the truth or falsity of the remaining allegations. 

7. 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 165-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. Admit the 

third and fourth sentence. Deny the fifth sentence. Admit the 

sixth sentence. 

8. Adnit., 

9. Admit, except to affirmatively state that the Health 

Facilities, Services and Review Development Division is called 

 



the Health Facilities, Services and Resource Development Bureau 

  

and the other division of the State Agency is the Health Resources 

Development Division. 

10. Admit, except to affirmatively state that the 

Health Facilities, Services and Review Development Division 

1s called the Health Facilities Services. 

11. The federal defendant is without knowledge or infor- 

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

of this allegation. 

12... ‘Admit. 

13. Admit the first sentence. The federal defendant 

is without information or knowledge sufficient to form a belief 

as to the truth or falsity of the allegation in the second 

Sentence, 

14. Deny the first sentence except to admit that Broadway 

Methodist Hospital is located in Merrillville, Lake County, 

Indiana, approximately fifteen miles south of Gary Methodist 

Hospital. Admit the second sentence. The federal defendant 

is without knowledge or information sufficient to form a belief 

as to the truth or falsity of the remaining allegations. 

15. Admit the first sentence. Deny the second sentence. 

16. 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. 

17. 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. 

18. Deny. | 

 



  

18. 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. 

20." Admit. 

21. .A%mit, 

22. 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 

ctober 21, 1976 with attachments labelled Hill-Burton 

Applications of the Methodist Hospital, Inc. for a full 

statement of its terms and qualifications. 

23. Admit the first sentence. Deny the second sentence. 

24. Deny and affirmatively allege that none of the named 

plaintiffs wrote objections to HEW. 

25. Deny. 

29. This paragraph contains plaintiffs' prayer for re- 

lief to which no. answer is recuired. 
pi} 

oh The federal defendant hereby specifically denies all of 

the allegations of the complaint not hereinbefore otherwise 

submitted, t
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OF COUNSEL: 

JEFFREY CHAMPAGNE. 

U.S. Department of Health, 
Education and Welfare 

MARVIN G. GARVIN 

Regional Attorney 

EDWARD IL. KOVEN 

Assistant Regional Attorney 
Department of Health, 

Education and Welfare 
300 South Wacker Drive 
18th Floor 
Chicago, Illinols 

  

  

FRED W. GRADY 

Assistant United States Attorney 

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REBECCA L. ROSS 
Attorneys for Defendant 
Attorneys, Department of Justice 

Washington, D.C. 20530 
Telephone: 739-4267 

 



CER 

  

TIFICAT E OF SE RVICE   

Y certify that's 

tl zz. 

  

rostage prepaid to: I J 

Copy of Def 

day of July, 

endant 

Ms. Beth Lief 

Mr. Jack Greenberg 

1977 

gs Answer has 

by mailing 

Mr. Melvyn Leventhal 

10 Columbus. Circle 
New York, New York 10019 

Mr. Julian Allen 
2009 Broadway 
ary, Indiana 46407 

Ms. Marilyn G.. Rose 
Ms. Chr 

1757 NX 
Washington, 

Mr. Bruce E. 

istine 
mf A i Street, 

D.C. 

B. Hi 

NV. 

Sayers 

ckman 

20036 

Hodges, Davis, Greenberg, Compton 
& Sayers 

5525 Broadway 
Gary, Indiana 46401 

Kipton Kaplan 
Executive Director, Northern 

Comprehensive Health 
Inc. 

900 East Colfax Avenue 
South Bend, Indiana 46617 

Indiana 

services Agency, 

Michael Schaefer 
Assistant Attorney General 

of Indiana 

219 State House 
Indianapolis, Indiana 46204 

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3: IL BEC CA T “ROS SIN 2354 [||60919b5a-2956-406a-af40-b322201e0a48||]