Facts
In the 1970s, Circle X constructed the new regional hospital in Y, which was able to be opened in the spring of 1979. On the 4th floor of this hospital, a 25-bed care unit for the elderly was created. For this care unit, Circle X filed an application with the Federal Social Insurance Office (OFAS) on August 29, 1977, to obtain AVS construction subsidies. Although OFAS did not particularly appreciate the accommodation of a care unit for the elderly in an acute care hospital, it ultimately agreed to grant AVS subsidies for the care unit. In 1981, OFAS was able to pay an additional amount of 68,691 francs after deducting advance payments of 590,000 francs. In 1992, OFAS learned that the hospital's care unit was going to be closed and that the patients would be transferred to a new nursing home. OFAS then demanded the full restitution of the 658,691 francs AVS subsidy under Art. 221 OASIA, on the grounds that the care unit had only served its original purpose for 11 years. Circle X contested this decision, but OFAS maintained its position in a new decision of November 18, 1993.Considerations
The Federal Insurance Court considers that the OFAS decision of March 17, 1993, which was not accompanied by instructions on legal remedies, cannot be considered null and void. Although this decision was flawed in form, Circle X has expressed its intention to contest it within the legal deadline, so that the duly notified decision of November 18, 1993, can be considered the subject of the appeal.
The Federal Insurance Court notes that AVS construction subsidies are subject to…