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RUSH CITY HOSP. v. SANDSTONE AREA HOSP.

No. 82-398.

326 N.W.2d 638 (1982)

RUSH CITY HOSPITAL, Respondent, v. SANDSTONE AREA HOSPITAL and Nursing Home, Inc., and Lakeside Nursing Home, Inc., Appellants, and Pine County Board of Commissioners, Dr. George R. Petterson, Minnesota Commissioner of Health, and Central Minnesota Health Systems Agency, Defendants.

Supreme Court of Minnesota.

November 24, 1982.

Attorney(s) appearing for the Case

Broeker, Hartfeldt, Hedges & Grant, John M. Broeker and James W. Ingison, Minneapolis, for appellants.

Hamilton & Bowden, Joseph E. Hamilton and John J. Bowden, Minneapolis, for Rush City Hosp.

John Carlson, County Atty., Pine City, for Pine County Bd. of Com'rs.

Warren Spannaus, Atty. Gen., and Richard A. Wexler, Asst. Atty. Gen., Minneapolis, for Dr. George R. Petterson, et al.

Donohue & Rajowski and Michael H. Donohue, St. Cloud, for Central Minnesota Health Systems Agency.

Heard, considered and decided by the court en banc.

TODD, Justice.

In 1976, Pine County, Minnesota, decided to sell its municipal hospital and nursing home to avoid continued losses. Sandstone Area Hospital, Inc. acquired the property in 1977 and now operates the 30-bed hospital and 46-bed nursing home as a nonprofit corporation in Sandstone, Minnesota, 20 miles north of Pine City. Max Blaufuss, who submitted Sandstone's bid to the Pine County Board, also owns Lakeside Nursing...

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