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Petitioner viewed the Van Orden facility as a prototype for
developing other multifunctional care facilities in the United
States. His goal was to own similar facilities throughout the
country, possibly through a nationwide chain. Petitioner
intended to establish similar facilities in other States using
different corporations that would be kept under his control.
While working as an emergency room physician during his 2-
year leave of absence from the residency program, petitioner
worked with architects, visited other senior service facilities,
and participated in applying for the certificate of need.
Petitioner also located land for the site of the proposed
facility, negotiated the purchase, and financed the purchase of
the land.4
Oklahoma required a proposed operator of a new nursing home
facility to obtain a certificate of need from the Oklahoma Health
Planning Authority (the planning authority). A certificate of
need was required to ensure that there was a need for the
facility in the local service area and to ensure that the
proposed owner had adequate financial backing and experience to
operate the facility successfully. Upon completion of the
facility, the operator also needed to obtain a license from the
Oklahoma State Department of Health.
4Petitioner was later repaid the purchase price of the land.
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