JUDGE ASKS FOR MORE INFORMATION IN JOHNSON CITY METHADONE CLINIC DISPUTE

JOHNSON CITY - An administrative law judge in Nashville heard arguments on
Wednesday for and against a methadone clinic opening in Johnson City.

The Tennessee Health Facilities Commission granted a certificate of need to
the Johnson City Addiction Research and Treatment Center with an 8-0-1 vote
in June 2002.

In response, the Johnson City Development Authority, city of Johnson City,
East Tennessee State University, Frontier Health, Watauga Insurance,
Friends of Old DownTowne, Asbury Centers, Gwen Stout, Dr. Ben Hall, and the
Johnson City Chamber of Commerce filed petitions contesting the certificate
of need.

The petitioners argue that the commission's vote was invalid due to a lack
of a quorum.

The treatment center has filed a motion to dismiss the petitioners' appeal,
saying the petitions were not filed in a timely manner per state law.

On Wednesday, Judge James Hornsby heard arguments from both sides. However,
Hornsby did not issue a ruling on the motions Wednesday. Rather, he ordered
that more evidence be submitted on two contested issues.

Reid Brogden, attorney for the commission, said he expects a ruling within
the next 30 days.

"Once he gets all of those conference filings, I assume (Judge Hornsby)
will make a relatively quick ruling," said Brogden.

One of the contested issues involves a member of the commission - Janet Jones.

Brogden said this is an issue relative to Jones and what exactly her
relationship and her husband's relationship was with various boards and
agencies in Johnson City.

According to court records filed by Gayle Malone - attorney for the city -
Jones should not be counted toward the quorum necessary for a meeting of
the commission.

"Jones announced to the public that she would abstain from voting on the
issuance of the CON," Malone wrote in his motion to dismiss. "Jones'
voluntary or involuntary disqualification from voting prevented her from
being counted toward the number required for a quorum of the commission."

Because Jones did not vote on the certificate of need, the commission did
not have the nine-member quorum necessary to approve the treatment center's
certificate of need, Malone argues.

In an affidavit filed by Brogden, Jones informed him that her husband, John
Jones, served on one or more of the boards of the opponents to the
methadone clinic.

"On the basis of this relationship, I instructed her that she should
abstain from voting on the CON," Brogden said in the affidavit.

John Jones served on the board of the chamber of commerce and Frontier Health.

Brogden said a second issue Hornsby requested more information on dealt
with whether it was proper for the commission to accept a petition via fax.

The Johnson City Chamber of Commerce faxed its petition to the commission
dated July 22, 2002.

Jerry Taylor, attorney for the methadone clinic, writes in his motion that
under state law "this is an ineffective filing."

Taylor filed a motion arguing that all of the petitions filed should be
dismissed because they failed to be submitted in a timely manner - 15 days
from the date of the hearing.

On July 1, 2002, state law changed in regard to how long a person or
organization could file an appeal to a certificate of need from 30 days to
15 days.

"Therefore, in order to be timely filed, any petition for a contested case
must have been filed on or before July 11, 2002," Taylor wrote.

The earliest petition received by the commission was on July 15, 2002, from
the JCDA.

Attorneys for the clinic and the city had few comments to make regarding
Wednesday's hearing.

"I'm relatively optimistic. I think the judge will fully consider all of
the issues argued and make an appropriate decision," Taylor said. "We
argued the motions to dismiss, and the judge took those under advisement,
and we expect a decision in due course," said Joseph Wellborn, attorney for
the city.

Wellborn said he could not comment on the Jones or fax issues.