Lawsuit holds up West Des Moines hospital projects
If Iowa Health – Des Moines or Mercy Medical Center were to start construction of their proposed West Des Moines hospitals, they “would be doing so at their own risk” due to an unresolved lawsuit, said an attorney representing Wellmark Blue Cross and Blue Shield.
If dirt begins to move at either site, Wellmark would likely file a motion with the state district court for a stay to prevent construction activity from beginning, said Hayward Draper, an attorney with Nyemaster, Goode, West, Hansell & O’Brien P.C. “I would imagine the court would consider that,” he said.
In February, Wellmark filed suit against the Iowa Department of Public Health and the hospitals in an effort to compel the state to review the projects, which Wellmark officials say is necessary to prevent duplication of services that would lead to higher health-care costs.
The Iowa Health Facilities Council determined in January that the hospital projects are not subject to review because they are considered replacement or modernization projects, which don’t fall under the council’s jurisdiction.
Mercy officials say its planned 146-bed hospital will replace Mercy Capitol, which it plans to sell to the state of Iowa. Iowa Health plans to replace Iowa Lutheran Hospital with a 200-bed hospital in West Des Moines. Broadlawns Medical Center has been negotiating with Iowa Health to purchase the Iowa Lutheran campus and move its operations there.
A Polk County district judge recently denied a motion by the hospitals to dismiss the case.
Iowa Health spokeswoman Jennifer Perry said the hospital is “in a wait-and-hold pattern right now” due to the lawsuit, though planning work continues.
Similarly, Mercy spokesman Gregg Lagan said design work is continuing and that officials have not determined a construction start date.
The hospitals and the Iowa Department of Public Health are expected to file answers to the original complaint within about the next two weeks, Draper said.