November 24, 2004

The Michigan Department of Community Health (MDCH) has ordered a Clinton Township facility to cease and desist health care services until it fully complies with Michigan’s Public Health Code.

A compliance order, issued by MDCH Director Janet Olszewski on November 23, orders Clinton Diagnostic, LLC to immediately discontinue any and all mammography, computerized tomography (CT), positron emission tomography (PET), magnetic resonance imaging (MRI), and x-ray services, and disallows the facility from charging for these health services, until it follows Certificate of Need law, as outlined in the Public Health Code.

Clinton Diagnostic has not secured the required Certificate of Need to conduct these services – as required by state law – and is currently defying the law by providing these services on-site.

“We have absolutely no assurances from Clinton Diagnostic that they are interested in following sections of the Public Health Code that have been specifically written to protect the health, safety, and welfare of the citizens of Michigan,” Olszewski said. “We intend to pursue this matter to the fullest extent of the law and consider any Public Health Code violation of this nature as a significant breach of public safety.”

Violation of the Compliance Order is a misdemeanor punishable by imprisonment of not more than 6 months. The department also can issue civil penalties of up to $1,000 for each violation, or for each day violations continue. Clinton Diagnostic has ignored numerous letters from MDCH regarding this matter.

MDCH radiation safety inspectors visited Clinton Diagnostic on October 27, and found several pieces of medical equipment not appropriately licensed for a free standing facility. Clinton Diagnostic has not obtained the required Certificate of Need that is required to run a health clinic that offers sophisticated medical technological services, Olszewski said.

During the inspection, MDCH officials also met with Anthony DeFeo, who identified himself as the Chief Executive Officer of Clinton Diagnostic. During an interview, Mr. DeFeo said that Clinton Diagnostic was fully intending to build a new $350 million hospital at the site, which also requires the builder to follow the Certificate of Need process.

An administrative hearing to address the matter is scheduled in Lansing on December 1.