Bus Law II
September 12th, 2016
CASE BRIEF #2
Case: Hollowell v. Orleans Regional Hospital, 217 F3d 379 (5th Cir. 2000)
Facts: Orleans Regional Hospital, a Medicaid funded psychiatric hospital primarily served adolescents and children. The hospital was a limited liability company established with three members; NORS LLC, North Louisiana, Inc. and Precision, Inc. Defendants John C. Turner and William C. Windham held fifty percent interest in NLRH and Richard W. Williams was the sole shareholder of Precision. Together they owned NLRH Partnership and treated their patients for psychiatric, chemical dependence disorders and received Medicaid reimbursements. North Louisiana Inc. and Precision Inc. also formed Magnolia Health Systems providing management services to ORH and NLRHP and developed other health-related business. In 1994, changes in Medicaid policy affected the admission and the length of stay at the hospitals causing the patients census to drop. ORH began providing outpatient services, but in 1995 the patient’s census continued to decline and Williams, Windham, Turner and Peters decided to close ORH in October 1995. ORH employees were notified on October 27th, 1995 of ORH`s shutdown and majority of ORH’s employees left the hospital November 3rd 1995. Plaintiffs brought this action against ORH and the various other LLCs, corporations, and individuals, for failure to provide them with a proper notice in violation of Federal statute.
Issue: Did ORH violate the...