Covenant Health v. Tennessee Health Services And Development Agency, et al.

This appeal arises out of the Tennessee Health Services and Development Agency’s decision to grant a certificate of need to a company to acquire and operate a linear accelerator; the decision was opposed by another company that operated a linear accelerator. After a contested case hearing, an administrative law judge issued an initial order holding that the certificate of need should not have been granted. On the applicant’s appeal, the agency reviewed the initial order and reversed it. The company which contested the application filed a petition for review in chancery court, where the Chancellor reversed the agency’s decision, finding that it was not based on substantial and material evidence. On appeal to this court, we conclude that substantial and material evidence existed to support the agency’s decision to issue the certificate of need. We therefore reverse the order of the chancery court and remand the case for entry of an order affirming the agency’s decision.