The applicants, a physician and three corporate entities operating independent health facilities, sought judicial review of the Ministry of Health and Long-Term Care's decision to set off $1.6 million in future facility fees against alleged past overbilling.
The Ministry had also alleged overbilling of physician fees but refused to issue a final notice that would allow the physician to seek an independent adjudication before the Physician Payment Review Board.
The Divisional Court found that the Ministry had no express or implied statutory authority under the Independent Health Facilities Act to impose the set-off.
Furthermore, the court held that the Ministry acted unreasonably in relying on equitable set-off to avoid an independent adjudication of the billing dispute.
The court granted the application and issued an order of mandamus requiring the Ministry to reimburse the applicants for the facility fees taken pursuant to the unlawful set-off decision.