Anchorage Daily News

WASILLA -- The state last week rejected a state permit for Imaging Associates of Providence to run a Palmer-area facility that provides MRIs and other diagnostic services such as X-rays.

The company plans to appeal the state's denial of the facility's certificate of need, said Peter Gruenstein, attorney for Imaging Associates.

Nothing will change as far as daily operations go in the meantime, Gruenstein said.

A certificate of need is a permit the state Department of Health and Social Services issues health care facilities with capital investments of more than $1 million. Facilities of that size have to prove enough need exists in the community for their services.

IAP was created by a group of local physicians in partnership with Providence Health System. It opened two centers in 2006, one in Anchorage and the other near Palmer, literally next door to Mat-Su Regional Hospital.

That year, former health and social services commissioner Karleen Jackson determined that the Mat-Su facility was "a group of physicians in private practice" and didn't require a certificate of need. The state changed its position, however, after Mat-Su Regional appealed.

The state did approve a certificate of need for IAP's Anchorage facility.

State officials could not answer questions about the decision Thursday because of potential or pending litigation, department spokeswoman Catherine Stadem said.

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