Navajo Health Foundation-Sage Memorial Hospital, Inc. v. Burwell (86 F. Supp. 3d 1211, 2015)

United States District Court for the District of New Mexico 2015-02-05

Indians Judiciary and Judicial Procedure Public Contracts

Citations

Full opinion text

MEMORANDUM OPINION AND ORDER

JAMES O. BROWNING, District Judge.

THIS MATTER comes before the Court on the Defendants’ Motion to Dismiss Under Fed.R.Civ.P. 12(b)(3) or Motion to Transfer Under 28 U.S.C. § 1401(a), filed November 25, 2014 (Doc. 8)(“Motion”). The Court held a hearing on January 27,-2015. The primary issues are: (i) whether the United States District Court for the District of New Mexico is a proper venue for this case under 28 U.S.C. § 1391(e)(1)(A); (ii) whether the District of New Mexico is a proper venue for this case under 28 U.S.C. § 1391(e)(1)(B); and (iii) whether the Court will transfer the case to the United States District Court for the District of Arizona under 28 U.S.C. § 1404(a). First, the Court concludes the District of New Mexico is a proper venue for this case under § 1391(e)(1)(A), because Defendant Frank Dayish is domiciled in New Mexico. Second, the Court holds that the District of New Mexico is not a proper venue for this case under § 1391(e)(1)(B), because a “substantial part of the events or omissions giving rise to the claim” did not occur in New Mexico. 28 -U.S.C. § 1391(e)(1)(B). Third, the Court will not transfer the case to the District of Arizona under § 1404(a), because Sage Hospital filed suit in the District of New Mexico, and because the District of New Mexico is a more convenient forum for the witnesses, the parties, and for obtaining the relevant documents than the District of Arizona is. Consequently, the Court will deny the Motion.

FACTUAL BACKGROUND

This case arises from the decision of the Indian Health Service (“IHS”) not to renew its contract with Plaintiff Navajo Health Foundation — Sage Memorial Hospital, Inc. to provide healthcare to Navajo Indians on the Navajo Reservation under the Indian Self Determination and Education Assistance Act, 25 U.S.C. § 450 (“ISDEA”). The Court takes its facts from (i) the First Amended Complaint, filed November 24, 2014 (Doc. 5)(“Com-plaint”); (ii) the documents attached to the Motion; (iii) the documents attached to the Plaintiffs Opposition to Motion to Dismiss or Transfer, filed December 11, 2014 (Doc. 14)(“Response”); and (iv) the documents attached to the Defendants’ Reply in Support of Their Motion to Dismiss, filed December 29, 2014 (Doc. 18)(“Reply”).

1. The Parties.

Sage Hospital is a private non-profit corporation that has owned and operated a healthcare facility in Ganado, Arizona— which lies within the Navajo Reservation— since 1974. See Complaint ¶ 6, at 4. Sage Hospital sits approximately 192 miles from Albuquerque, New Mexico; 272 miles from Phoenix, Arizona; and two miles from the New Mexico border. See Declaration of Christi El-Meligi ¶ 11, at 9, filed December 11, 2014 (Doc. 14-1)(“E1-Meligi Declaration”). The Navajo Nation Council has designated Sage Hospital a “tribal organization” for the purpose of contracting with the Department of Health and Human Services (“HHS”). Complaint ¶ 6, at 4. Sage Hospital provides healthcare services to Navajo Indians living in the Ganado, Linlichee, Klagetoh, Wide Ruins, Lower Greasewood Springs, Cornfields, Nazlini, and Steamboat chapters of the Navajo Nation — which are all located in Arizona. See History, Navajo Health Foundation— Sage Memorial Hospital, http:// sagememorial.com/about-us/history (last visited Nov. 4, 2014).

Defendant Sylvia Mathews Burwell is the HHS Secretary. Complaint ¶ 7, at 4. As Secretary, Burwell is responsible for conducting all HHS duties, including contracting on the United States of America’s behalf with tribal organizations to provide healthcare to Native Americans. See Complaint ¶ 7, at 4. Defendant Yvette Rou-bideaux is IHS’ Acting Director. See Complaint ¶ 8, at 4. Roubideaux is responsible for carrying out all IHS duties, including contracting with tribal organizations to provide healthcare to American Indians. See Complaint ¶ 8, at 4.

Defendant John Hubbard, Jr., is the Area Director of the Navajo Area IHS— which is based in Window Rock, Arizona. See Complaint ¶ 9, at 4-5; Declaration of John Hubbard ¶ 1, at 1, filed November 25, 2014 (Doc. 8-5)(“Hubbard Declaration”). Hubbard’s personal residence is in Ganado, Arizona. See Hubbard Declaration ¶ 5, at 2. The Navajo Area IHS is responsible for healthcare services throughout the Navajo Nation. See Hubbard Declaration ¶ 1, at T. The Navajo Area IHS office sits approximately 168 miles from Albuquerque and 282 miles from Phoenix. See El-Meligi Declaration ¶ 11, at 9. Hubbard directs all Navajo Area IHS programs and approximately 4,000 staff located at the Kayenta Health Center in Arizona, the Chinle Hospital in Arizona, the Shiprock Northern Navajo Medical Center in New Mexico, the Crownpoint PHS Hospital in New Mexico, and the Gallup Indian Medical Center in New Mexico. See Hubbard Declaration ¶ 1, at 2. Forty percent of the Navajo Area IHS user population resides in New Mexico, fifty-five percent resides in Arizona, and five percent resides in Utah. See Hubbard Declaration ¶ 4, at 2. The Navajo Nation’s land base is larger in Arizona than in New Mexico or Utah. See Hubbard Declaration ¶ 4, at 2. None of Hubbard’s official duties related to Sage Hospital or its IHS contract has any connection to New Mexico. See Hubbard Declaration ¶ 3, at 2.

Defendant Frank Dayish is the Contracting Officer for the Navajo Area IHS. See Complaint ¶ 10, at 5. Dayish’s personal residence is in Gallup, New Mexico. See Declaration of Frank Dayish ¶ 3, at 2, filed November 25, 2014 (Doc. 8-4)(“Dayish Declaration”). Dayish is responsible for negotiating and maintaining IHS’ contracts throughout the Navajo Reservation, including its contract with Sage Hospital. See Complaint ¶ 10, at 5. Dayish has the authority to sign ISDEA contracts and funding agreements with Sage Hospital and to award funds under those agreements. See Complaint ¶ 10, at 5. Dayish’s official duty station is in Window Rock, and Window Rock is where he performs all of his official duties. See Dayish Declaration ¶ 3, at 1.

2. Sage Hospital’s Tumultuous History.

From 1974 to 2007, Sage Hospital’s facilities grew increasingly obsolete, and the quality of its healthcare services plummeted. See Complaint ¶ 12, at 6. Consequently, by 2007, Sage Hospital was fighting multiple regulatory and financial battles to stay afloat. See Complaint ¶ 12, at 6. The Centers for Medicare and Medicaid Services was in the process of terminating Sage Hospital’s certification, the Arizona Department of Health Services was threatening to revoke Sage Hospital’s Rural General Hospital Healthcare license, the federal Environmental Protection Agency had. warned Sage Hospital about sanitary deficiencies with its water supplies, and Sage had already lost its accreditation from the Joint Commission on Accreditation of Health Care Organizations (“Joint Commission”) — an independent, non-profit organization that accredits hospitals throughout the United States. Complaint' ¶ 12, at 6; id. ¶ 16, at 7-8. To make matters worse, Sage Hospital was virtually insolvent. See Complaint ¶ 13, at 6. Consequently, it could not afford to keep high-quality healthcare professionals, and had to end its general surgery and obstetric practices. See Complaint ¶ 13, at 6.

In October, 2007, Sage Hospital’s Board of Directors rejected a plan to shutter the hospital, and instead hired M. Morgan & Associates to oversee Sage Hospital’s financial and personnel management and make the necessary adjustments to turn around Sage Hospital’s operations. See Complaint ¶ 14, at 7. After Sage Hospital’s former Chief Executive Officer — Lauren Bernally — resigned, the Board of Directors appointed Ahmad Razaghi to replace her. See Complaint ¶ 15, at 7. From 2007 to 2009, Sage Hospital negotiated with the Centers for Medicare and Medicaid Services and the Arizona Department of Health Services to stay open without losing additional services, and implemented its plan to improve the quality of Sage Hospital’s healthcare services. See Complaint ¶ 17, at 8.

Sage Hospital’s turnaround plan succeeded. See Complaint ¶ 17, at 8. In September, 2009 — for the first time in a decade^ — Sage Hospital received its unconditional Arizona Department of Health Services license, and Centers for Medicare and Medicaid Services certification. See Complaint ¶ 17, at 8. On May 4, 2009, the Joint Commission awarded Sage Hospital its “Gold Seal of Approval,” signifying that Sage exemplified the highest quality of patient care. Complaint ¶ 17, at 8 (internal quotation marks omitted). In March, 2010, the United States Surgeon General, Vice Admiral Dr.. Regina M. Benjamin, on behalf of HHS, awarded Razaghi the “Chief Executive Officer Managerial Excellence Award” for “leadership, successes and improvements which equate to improved and enhanced patient care.” Complaint ¶ 17, at 8 (internal quotation marks omitted). In a January 10, 2012, letter, the EPA told Sage Hospital that it had fulfilled the EPA’s Administrative Order and thanked Sage Hospital for its cooperation in complying with the Federal Safe Drinking Water Act, 42 U.S.C. § 300f. See Complaint ¶.17, at 8. In June, 2012, Sage Hospital received the American Hospital Association Institute for Diversity’s “Best in Class Hospital Award’.’ for leadership in addressing health disparities and improving diversity in governance. Complaint ¶ 17, at 8. The award recognized Sage Hospital and only one other hospital out of 900 hospitals nationwide. See Complaint ¶ 17, at 8.

On September 12, 2013, the Arizona Department of Health Services licensed Sage Hospital through September 30, 2016. See Complaint ¶ 17, at 8. In March, 2014, the Joint Commission granted Sage Hospital “Critical Access Hospital Accreditation,” stating that it did not identify any areas for improvements. Complaint ¶ 17, at 8-9 (internal quotation marks omitted). Sage Hospital also received an unqualified — i.e., “clean” — audit from its independent auditors every year from 2007 to 2013. Complaint ¶ 17, at 9 (internal quotation marks omitted). Sage Hospital accomplished all of this despite IHS’ failure to provide full contract support costs. See Complaint ¶ 17, at 9.

In Resolution No. CO-64-03 (Oct. 22, 2003), the Navajo Nation Council renewed Sage Hospital’s tribal organization status through 2005. See Complaint ¶ 19, at 9. In Resolution No. CJN-35-05 (June 3, 2005), the Navajo Nation Council reaffirmed Sage Hospital’s tribal organization status, authorizing Sage Hospital to manage and operate contracts with IHS through September 30, 2020. See Complaint ¶ 19, at 9-10. Soon after receiving tribal organization status through September 30, 2020, Sage Hospital entered into a contract with IHS that became effective in 2009 (“2009 Contract”). Complaint ¶ 19, at 10. Sage Hospital and IHS extended the 2009 Contract through September 30, 2013. See Complaint ¶21, at 10. In an August 22, 2013, letter to IHS, Sage Hospital offered two proposals: (i) to extend IHS’ contract with Sage Hospital through September 30, 2016; and (ii) to approve an Annual Funding Agreement for the 2014 fiscal year with no material changes in Sage Hospital’s budget, services, or programs from the 2013 fiscal year. See Complaint ¶ 21, at 10-11.

IHS did not accept either of Sage Hospital’s proposals, but instead chose to fund Sage Hospital on a monthly basis while conducting a performance monitoring review (“Review”) and forensic audit (“Audit”). Complaint ¶22, at 11. IHS conducted the Review and Moss Adams, LLP — an independent accounting firm— conducted the Audit. Complaint ¶ 2, at 2-3; id. ¶¶ 2225, at 11-12. Both the Review and the Audit began in January, 2014. See Complaint ¶ 22, at 11. At the outset of the process, IHS promised that it would allow Sage Hospital to review draft reports, correct errors, and discuss any adverse findings before IHS finalized the reports. See Complaint ¶ 22, at 11. Sage Hospital cooperated fully with both the Review and the Audit, ultimately producing approximately 23,000 pages of documents and hosting several on-site visits for IHS and Moss Adams, LLP. See Complaint ¶ 22, at 11. Sage Hospital also offered to make its officials available, and to provide additional documents, if either IHS or Moss Adams, LLP required additional information. See Complaint ¶ 22, at 11. Sage Hospital satisfied all requests for documents and information by July, 2014. See Complaint ¶ 23, at 11. Sage Hospital asked to review IHS’ draft reports, but IHS did not allow Sage Hospital to do so. See Complaint ¶ 23, at 11. Unsure of what IHS was planning and with the end of fiscal year 2014 looming, Sage Hospital, on September 19, 2014, submitted to IHS a another three-year contract renewal proposal and an Annual Funding Agreement for fiscal year 2015. See Complaint ¶ 23, at 11.

Unbeknownst to Sage, Moss Adams, LLP finished the Audit on July 25, 2014, and IHS finished the Review on September 15, 2014. See Complaint ¶ 25, at 11-12. Yet IHS did not provide any draft reports to Sage Hospital, and did not provide either its final report or Moss Adams, LLP’s final report to Sage Hospital until September 29, 2014 — the penultimate day of the 2014 fiscal year. See Complaint ¶25, at 12. IHS’ report recommended that “the current contractual relationship [should] be severed through the issuance of a declination for continued contracting with the current [Sage] Board of Directors.” Complaint ¶ 49, at 22 (quoting IHS Review at 32)(alterations in Complaint but not in IHS review)(internal quotation marks omitted). Both IHS’ and Moss Adams, LLP’s reports either overlooked or did not read the documents that Sage Hospital provided, and did not seek any additional information or clarifications from Sage Hospital. See Complaint ¶ 25, at 12. Consequently, fundamental factual errors, unwarranted speculation, and irrelevant observations permeated their reports. See Complaint ¶ 25, at 12. It appears that their reports credited the untrue allegations of disgruntled former Sage Hospital employees without testing those allegations through requesting documents from Sage or interviews with Sage Hospital employees. See Complaint ¶32, at 15. Neither report identified any instance of misuse of federal funds, improper patient care, or any violation of Sage Hospital’s IHS contract. See Complaint ¶ 25, at 12.

3. The Declination.

On September 29, 2014, IHS informed Sage Hospital by letter that it would not renew Sage’s contract. See Complaint ¶ 26, at 12; Letter from the Department of Health and Human Services to Stenson Wauneka, President of the Board of Directors of the Navajo Health Foundation (dated Sept. 26, 2014), filed November 25, 2014 (Doc. 8-2)(“Declination”). The Declination explained that Sage Hospital’s Board of Directors was misusing government funding and providing inadequate care to its patients. See Declination at 4-9. The Declination relied on and included the reports from the Review and the Audit as attachments. See Complaint ¶ 26, at 13.

Sage responded to the Declination with its own letter, dated October 2, 2014. See Letter from Stenson D. Wauneka, Chairman, Board of Directors, to John Hubbard, filed' November 25, 2014 (Doc. 8-3)(“Sage’s Declination Response”). In Sage’s Declination Response, Sage Hospital demanded that IHS immediately rescind the Declination for the following reasons:

First and foremost, your purported Declination of Sage’s proposed Amendment No. 1 and Renewal No. 1 (“Renewal”) violates 25 C.F.R. § 900.33 and is invalid. The regulations are clear that where the proposed Renewal does not constitute a material and substantial change to the scope or funding of Sage’s PFSAs you do not have the authority to base the decision on performance concerns. The DOI/HHS Internal Agency Procedures Handbook specifically states that “[t]he T/TO’s performance under the existing contracts shall have no effect on the contract renewal process except as stated in 25 C.F.R. 900.33. (Any alleged grounds the agency may have for terminating the contract must be dealt with under Subpart P-Retrocession and Reassumption procedures ...).” Because Sage’s proposed Annual Funding Agreement for FY 2014 (“2014 AFA”) is substantially the same as the one approved for FY 2013, you are required to apply the standard under 25 C.F.R. § 900.32, which answers the question “Can the Secretary decline an Indian ... tribal organization’s proposed successor annual funding agreement?” with an unequivocal “NO.” Your refusal to provide Sage technical assistance under these circumstances also violates federal law. See 25 U.S.C. § 450f(b)(2). Your purported Declination violates the Act, your own regulations and internal guidance documents, and the congressional policy underlying the Apt, and is invalid.

Complaint ¶27, at 12-13 (quoting Sage’s Declination Response at 2)(internal quotation marks omitted).

Sage’s Declination Response further states that IHS violated the procedures to which it agreed by not permitting Sage Hospital to review its draft reports. See Complaint ¶28, at 13. Reciting its dramatic turnaround and multiple awards, Sage Hospital challenged the Declination’s conclusions that it was unable to satisfactorily provide healthcare services, as without a factual basis. See Complaint ¶ 28, at 13. Sage Hospital also urged IHS to continue to provide funding pending the resolution of IHS’ concerns. See Complaint ¶ 28, at 13.

IHS funds account for approximately fifty-five percent of Sage Hospital’s revenue. See Complaint ¶ 31, at 15. IHS did not tell Sage Hospital that it would cut its funding at any point from 2009 to the present. See Complaint ¶ 31, at 15. Nor did IHS discuss with Sage Hospital the matters purportedly motivating the Declination during any negotiations or other meetings with Sage Hospital before issuing the Declination. See Complaint ¶ 31, at 15. IHS also never asserted that Sage Hospital was grossly negligent in handling funds, or that Sage Hospital endangered the health and safety of any person under the ISDEA. See Complaint ¶ 31, at 15.

4. IHS’ Actions After the Declination.

On or about September 29, 2014, IHS told Sage Hospital’s supplier in Gallup— without notifying Sage Hospital — to immediately stop delivering pharmaceuticals to Sage Hospital. See Complaint ¶ 44, at 20. Since that day, Sage Hospital’s spending on pharmaceuticals has risen by 300% to 400%. See Complaint ¶ 44, at 20. IHS’ one-day notice of Declination also left Sage Hospital without insurance coverage for medical malpractice claims under the Federal Tort Claims Act, 28 U.S.C. § 1346(b) — causing Sage Hospital to spend an additional $530,000 on medical malpractice insurance. See Complaint ¶ 45, at 20.

In a Media Advisory for immediate release on October 12, 2014, entitled “HHS Announces Change in Health Care Services for beneficiaries in the Ganado Service Area,” IHS announced to the public “that the IHS will change how it is providing health care services to its beneficiaries in the Granado Service Area who were formerly served by the Navajo Health Foundation — Sage Memorial Hospital (NHF-SMH). IHS no longer provides funding to NHF-SMH for delivery of health care services in Ganado.” Complaint ¶46, at 20-21 (internal quotation marks omitted). The Media Advisory explains: “For outpatient medical, behavioral health, optometry, dental and other clinic — based services, IHS facilities in Chinle, Arizona and Gallup, New Mexico, and the PL 93-638 contracted Tsehootsooi Medical Center in Fort Defiance, Arizona [a competitor of Sage apparently favored by IHS] are available to provide services to individuals.” Complaint ¶ 46, at 21 (alterations in Complaint but not in source)(internal quotation marks omitted).

As of October 14, 2014, IHS’ website listed twelve healthcare centers on the Navajo Reservation, but did not mention Sage Hospital. See Complaint ¶ 47, at 21. Navajo Area IHS officials also told school officials at Wide Ruins not to release sixty-five students whose parents had authorized their children to go to Sage Hospital for free vaccinations. See Complaint ¶ 47, at 21. IHS has circulated, promoted, and continues to falsely state to schools, local governments, and others in Sage Hospital’s service area that it is closing. See Complaint ¶47 at 21. In a letter dated October 9, 2014, Sage Hospital requested an informal conference with IHS to resolve their dispute. See Complaint ¶ 48, at 21-22. After Sage Hospital learned of IHS’ additional damaging actions and experienced the Declination’s collateral effects, however, Sage Hospital withdrew its conference request on October 17, 2014, stating that the informal conference would not “accord Sage the opportunity for immediate relief that IHS’ actions have necessitated.” Complaint ¶ 48, at 22 (internal quotation marks omitted).

PROCEDURAL BACKGROUND

Sage Hospital filed the Complaint on October 23, 2014, asserting four causes of action. See Complaint at 22-31. First, Sage Hospital contends that IHS’ declination of Sage’s August 22, 2013, three-year contract proposal violates 25 U.S.C. § 450f(b)(2), and 25 C.F.R. §§ 900.32 and 900.33. See Complaint ¶ 55, at 23. Sage Hospital asks the Court for immediate in-junctive relief to: (i) reverse IHS’ declination of Sage Hospital’s three-year contract proposal that it submitted on August 22, 2013; (ii) compel Burwell to award and fund the three-year contract; (in) provide Federal Tort Claims Act coverage for Sage Hospital and its employees; (iv) restore Sage Hospital’s ability to purchase pharmaceuticals and other supplies from its suppliers; and (v) cease IHS’ disparagement of Sage Hospital. See Complaint ¶¶ 54-56, at 23-24. Sage Hospital points out that, because the ISDEA provides for both injunctive and mandamus relief to remedy violations of the ISDEA and its implementing regulations, it does not need to prove the traditional equitable grounds for obtaining injunctive relief. See Complaint ¶ 56, at 24.

Sage Hospital argues that, even if had to demonstrate the traditional equitable grounds for obtaining injunctive relief, those traditional grounds are easily met here. See Complaint ¶ 57, at 24. Sage contends that IHS’ declination of Sage’s August 22, 2013, proposal is causing Sage Hospital immediate and irreparable injury, because it threatens to ruin Sage Hospital’s healthcare business, force it to close, and cause it to lose good will among its patients. See Complaint ¶ 57A, at 24. Sage Hospital asserts that it will likely succeed on the merits of its case, because the Defendants clearly violated the ISDEA and its promulgating regulations. See Complaint ¶ 57B, at 24. Sage Hospital points out that 25 C.F.R. § 900.33 prohibits IHS from declining to renew Sage Hospital’s ISDEA contract based on performance concerns to the extent that there were no material and substantial changes to the scope or funding of Sage Hospital’s programs and services. See Complaint ¶ 57B, at 24. Sage Hospital asserts that 25 C.F.R. § 900.32 prohibits IHS from declining Sage Hospital’s annual funding agreement for FY 2014, because that proposed agreement was substantially the same as the one that IHS approved for FY 2013. See Complaint ¶ 57B, at 24. Sage Hospital says that IHS’ refusal to provide Sage Hospital with technical assistance to address any relevant issues is “concededly in violation of 25 U.S.C. § 450f(b)(2).” Complaint ¶ 57B, at 24. Sage Hospital argues that the balance of hardships tips in its favor, because, while an injunction will merely require the Defendants to comply with federal law, the Court’s failure to order an injunction will ruin Sage Hospital’s business and cause 200 Sage Hospital employees to lose their jobs. See Complaint ¶ 57C, at 24. Sage Hospital asserts that an injunction will also be in the public interest, because it will allow American Indians to get much-needed and high-quality healthcare at Sage Hospital, rather than obtaining lower-quality healthcare at more distant IHS facilities. See Complaint ¶ 57D, at 25.

Second, Sage Hospital contends that IHS’ declination of Sage Hospital’s September 19, 2014, proposal for FY 2015 — to the extent that it is substantially the same as the FY 2014 proposal — violates 25 U.S.C. § 450f(b)(2) and 25 C.F.R. §§ 900.32 and 900.33. See Complaint ¶¶ 59-60, at 25. Sage Hospital asks the Court for immediate injunctive relief to: (i) reverse IHS’ declination of Sage Hospital’s September 19, 2014, proposal for FY 2015 to the extent that it is substantially the same as the FY 2014 proposal; (ii) compel Burwell to award and fund the September 19, 2014, proposal to the extent that it is substantially the same as the FY 2014 proposal; (iii) provide Federal Tort Claims Act coverage for Sage Hospital and its employees; (iv) restore Sage Hospital’s ability to purchase pharmaceuticals and other supplies from its suppliers; and (v) cease IHS’ disparagement of Sage Hospital’s business. See Complaint ¶¶ 61, at 25. Sage Hospital reiterates that, because the ISDEA provides for both injunctive and mandamus relief to remedy violations of the ISDEA and its implementing regulations, it does not need to prove the traditional equitable grounds for obtaining in-junctive relief. See Complaint ¶ 61, at 26.

Sage Hospital argues that, even if it had to demonstrate the traditional equitable grounds for obtaining injunctive relief, those grounds are easily met here. See Complaint ¶ 62, at 25-26. Sage Hospital contends that IHS’ declination of Sage Hospital’s September 19, 2014, proposal is causing Sage Hospital immediate and irreparable injury, because it threatens to ruin Sage Hospital’s healthcare business, force it to close, and cause it to lose good will among its patients. See Complaint ¶ 62A, at 26. Sage Hospital asserts that it will likely succeed on the merits of its case, because the Defendants clearly violated the ISDEA and regulations thereunder. See Complaint ¶ 62B, at 26. Sage Hospital points out that 25 C.F.R. § 900.33 prohibits IHS from declining to renew Sage Hospital’s ISDEA contract on performance concerns where there are no material and substantial changes to the scope or funding, or to Sage Hospital’s programs and services. See Complaint ¶ 62B, at 26. Sage Hospital asserts that 25 C.F.R. § 900.32 prohibits IHS from declining Sage Hospital’s annual funding agreement for FY 2015 to the extent that the agreement is substantially the same as those IHS approved in FY 2013 and 2014. See Complaint ¶ 62B, at 26. Sage Hospital says that IHS’ refusal to provide Sage Hospital with technical assistance to address any relevant issues is “concededly in violation of 25 U.S.C. § 450f(b)(2).” Complaint ¶ 62B, at 26. Sage Hospital reiterates that the balance of hardships tips in its favor, because, while an injunction will merely require the Defendants to comply with federal law, the Court’s failure to order an injunction will ruin Sage Hospital’s business and cause 200 Sage Hospital employees to lose their jobs. See Complaint ¶ 62C, at 26. Sage Hospital argues that an injunction will also be in the public interest, because it will allow American Indians to get much-needed and high-quality healthcare at Sage Hospital, rather than obtaining compromised quality care at more distant IHS facilities. See Complaint ¶ 62D, at 26-27.

Third, Sage Hospital asserts that, because it is entitled to immediate injunctive relief to reverse the Declination and to compel Burwell to award and fund the three-year contract proposal that Sage submitted on August 22, 2013, the Defendants are required to pay Sage Hospital the full amount requested in the FY 2014 additional funding agreement. See Complaint ¶ 64, at 27. Sage Hospital contends that, under 25 U.S.C. § 450m-l(a), it is entitled to an accounting of funds that IHS provided to Sage Hospital from October 1, 2013, to the date of judgment. See Complaint ¶ 66, at 27.

Fourth, Sage Hospital argues that IHS violated 41 U.S.C. § 7103(f)(3). See Complaint ¶¶ 67-72, at 27-29. Sage Hospital explains that, on August 25, 2014, it submitted to IHS a Contract Support Costs claim for $62,569,681 (“Claim”) under the Contract Disputes Act, 41 U.S.C. §§ 7101, 7103, 7107, and 7109; and under §§ 101(a) and (d) of the ISDEA. Complaint ¶ 68, at 27. According to Sage Hospital, the Claim specifies, for each fiscal year from 2009 to 2013, the total Contract Support Costs shortfall. See Complaint ¶ 69, at 27-28. Sage asserts that IHS responded to the Claim by “an inapplicable form letter,” dated October 23, 2014, that Dayish signed (“Oct. 23, 2014, Letter”). Complaint ¶ 70, at 28. Sage Hospital contends that the proposed date for deciding the Claim— October 21, 2015 — is unreasonable, because the Claim and its exhibits provide all of the information that IHS needs to decide the Claim. See Complaint ¶ 71, at 28. Sage Hospital argues that, consequently, the Oct. 23, 2014, Letter violates 41 U.S.C. § 7103(f)(3). See Complaint ¶ 71, at 28. Sage Hospital asks the Court to direct Dayish to issue a decision on the Claim in a specified period of time that the Court finds reasonable. See Complaint ¶ 72, at 29.

1. The Motion.

The Defendants filed the Motion on November 25, 2014. See Motion at 1. In the Motion, the Defendants ask the Court either to dismiss the case for improper venue under rule 12(b)(3) or to transfer the case to the United States District Court for the District of Arizona under § 1401. See Motion at 4-12. Beginning with their improper venue argument, the Defendants explain that a plaintiff may bring a civil suit against a United States employee in his or her official capacity in any district in which:

(A) a defendant in the action resides, (B) a substantial part of the events or omissions giving rise to the claim occurred or a substantial part of the property that is the subject of the action is situated, or (C) the plaintiff resides if no real property is involved in the action.

Motion at 4 (quoting 28 .U.S.C. § 1391(e)(l))(internal quotation marks omitted). According to the Defendants, the plaintiff bears the burden of establishing venue, and “must make a prima facie showing on the basis of affidavits and other written material to withstand the motion.” Motion at 4 (quoting Mohr v. Margolis, Ainsworth & Kinlaw Consulting, Inc., 434 F.Supp.2d 1051, 1058 (D.Kan.2006))(internal quotation marks omitted).

The Defendants argue that none of § 1391(e)(l)’s three conditions for venue are met in this case. See Motion at 4. The Defendants assert that § 1391(e)(1)(A) does not apply, because they do not reside in the District of New Mexico. See Motion at 4-6. The Defendants argue that the residence of a federal officer is the place where he or she performs his or her official duties. See Motion at 5 (citing Reuben H. Donnelley Corp. v. F.T.C., 580 F.2d 264, 266 n. 3 (7th Cir.1978); Lamont v. Haig, 590 F.2d 1124, 1128 (D.C.Cir.1978); Dunston v. N.Y.C. Police Dep’t, No. CIV 10-8117, 2010 WL 5065903, at *3 n. 4 (S.D.N.Y. Dec. 7, 2010); Burnett v. Caruso, No. CIV 10-10749, 2010 WL 1609256, at *1 (E.D.Mich. Apr. 19, 2010); Ibrahim v. Chertoff, No. CIV 06-2701, 2007 WL 1558521, at *4 (S.D.Cal. May 25, 2007); Caremark Therapeutic Servs. v. Leavitt, 405 F.Supp.2d 454, 464 (S.D.N.Y.2005); Neville v. Dearie, 745 F.Supp. 99, 102 (N.D.N.Y.1990), superseded by statute on other grounds as stated in Kampfer v. Scullin, 989 F.Supp. 194, 201 (N.D.N.Y.1997); Archuleta v. Sullivan, 725 F.Supp. 602, 605 (D.D.C.1989)). The Defendants point out that they each perform their official duties outside of New Mexico: Bur-well performs her official duties in the District of Columbia, Roubideaux performs her official duties in Maryland, and Hubbard and Dayish perform their official duties in Arizona. See Motion at 5-6. The Defendants argue that, consequently, Sage Hospital cannot establish venue in New Mexico through § 1391(e)(1)(A). See Motion at 6.

The Defendants say that, although Sage Hospital may argue that venue is proper because Hubbard performs some of his duties in New Mexico, the majority of courts have found that federal officers have only one official residence for venue purposes. See Motion at 6 (citing, e.g., Fl. Nursing Home Ass’n v. Page, 616 F.2d 1355, 1360 (5th Cir.1980), rev’d on other grounds, 450 U.S. 147, 101 S.Ct. 1032, 67 L.Ed.2d 132 (1981); Cook Grp., Inc. v. Purdue Research Found., No. CIV 02-0406, 2002 WL 1610951, at *5 (S.D.Ind. June 24, 2002); Republican Party of N.C. v. Martin, 682 F.Supp. 834, 836 (M.D.N.C.1988)). The Defendants argue that, consequently, the fact that Hubbard traveled New Mexico to perform some of his duties does not mean that venue is proper there. See Motion at 6.

The Defendants concede that a minority of courts appear to disagree with this approach, holding that federal officers can have more than one official residence if they: (i) perform “a significant amount” of their official duties in the other state; and (ii) those official duties are related to the cause of action. Motion at 6 (citing Dehaemers v. Wynne, 522 F.Supp.2d 240, 248 (D.D.C.2007); Bartman v. Cheney, 827 F.Supp. 1, 2 & n. 2 (D.D.C.1993)). The Defendants argue that, where a lawsuit lacks “any adequate connection” to the plaintiffs chosen forum, a federal official cannot be found to have a second residence there for venue purposes. Motion at 6-7 (citing Profess v. Howell, No. CIV 95-2553, 1995 WL 270219, at *3 (N.D.Ill. May 5, 1995)). The Defendants assert that this lawsuit lacks any adequate connection to New Mexico. See Motion at 7. The Defendants point out that Hubbard does not perform a significant amount of his duties in New Mexico, and that his few responsibilities in New Mexico have nothing to do with Sage Hospital or with its IHS contract. See Motion at 7 (citing Hubbard Declaration ¶¶ 2-4, at 1-2). The Defendants argue that, accordingly, even under the minority residence rule, Sage cannot establish proper venue. See Motion at 7.

The Defendants contend that, although Sage Hospital may assert that venue lies in New Mexico because IHS has facilities there, venue does not lie automatically in every judicial district where a federal agency has an office. See Motion at 7 (citing Reuben H. Donnelley Corp. v. F.T.C., 580 F.2d at 267 (holding that the 1962 amendments to 28 U.S.C. § 1391(e) did not alter the general rule that the federal government resides only in the District of Columbia); High Sierra Hikers Ass’n v. U.S. Forest Serv., No. CIV 04-3478, 2005 WL 886851, at *2 (N.D.Cal. Apr. 8, 2005) (rejecting the plaintiffs’ argument that the United States Forest Service resides in the Northern District of California solely because it has offices there); Hartke v. F.A.A., 369 F.Supp. 741, 746 (E.D.N.Y.1973) (“The statutory reference to the district in which a defendant ‘resides’ may not reasonably be construed to include every district where some subordinate has an office.”)). The Defendants assert that these rules “are not meant to be overly technical barriers to suit,” but were instead developed to address the difficulties for the federal government if it were forced to defend against claims brought across the country. Motion at 7 (quoting Buffalo Teachers Fed’n, Inc. v. Helsby, 426 F.Supp. 828, 829 (S.D.N.Y.1976)) (internal quotation marks omitted).

The Defendants contend that § 1391(e)(1)(B) does not apply, because all of the challenged actions or omissions that give rise to the claims in this case occurred outside the District of New Mexico. See Motion at 8-9. The Defendants explain that this lawsuit focuses on IHS’ non-renewal of a contract with Sage — a hospital located in Arizona — -via a letter that Hubbard — a government official who works in Arizona — signed. See Motion at 8. The Defendants argue that it should be obvious from these facts that all of the events giving rise to Sage Hospital’s claims occurred in Arizona and not in New Mexico. See Motion at 8. The Defendants assert that the Complaint underscores this point by repeatedly pointing out that: (i) Sage Hospital is under the jurisdiction of Arizona state agencies; (ii) Sage Hospital’s service area is exclusively in Arizona; (iii) Sage Hospital’s satellite facility is located in Arizona; and (iv) if the Court grants Sage Hospital’s request for injunctive relief, the federal government would send funding to Arizona. See Motion at 8-9 (citations omitted).

In the Defendants’ view, aside from the Complaint’s boilerplate allegation that one or more defendants “reside” in New Mexico, it makes only one allegation related to New Mexico: that IHS allegedly informed Sage Hospital’s patients that they could receive medical care in Gallup. Motion at 9 (citation omitted). The Defendants argue that issuing a statement in Arizona to people living in Arizona about medical care available in New Mexico is not a substantial event that can support venue in New Mexico under § 1391(e)(1)(B). See Motion at 9 (citing Sutain v. Shapiro & Lieberman, 678 F.2d 115, 117 (9th Cir.1982) (affirming dismissal for lack of venue where events in district were not substantial); Davies Precision Machining, Inc. v. Def. Logistics Agency, 825 F.Supp. 105, 106 (E.D.Pa.1993) (holding that marginal transactions in the forum do not constitute a “substantial part of the events giving rise to the claim.”)).

The Defendants argue that § 1391(e)(1)(C) does not apply, because the real property involved in this action is outside of the District of New Mexico. See Motion at 9-10. The Defendants assert that the real property involved in this action is Sage Hospital’s facilities — which are located exclusively in Ganado. See Motion at 9. The Defendants conclude: “Because Plaintiff has not demonstrated that venue is proper in New Mexico, the Court should dismiss the case for improper venue under Federal Rule of Civil Procedure 12(b)(3).” Motion at 10.

The Defendants assert that, in the alternative, the Court should exercise its discretion under § 1404(a) to transfer this case to the District of Arizona. See Motion at 10. The Defendants explain that, in considering a motion to transfer venue under § 1404(a), courts have discretion to weigh a number of factors, including the plaintiffs choice of forum, and the accessibility of witnesses and other sources of proof. See Motion at 10 (citing Emp’rs Mut. Cas. Co. v. Bartile Roofs, Inc., 618 F.3d 1153, 1167 (10th Cir.2010)(listing factors for courts to consider in analyzing a motion to transfer venue under § 1404(a))). The Defendants argue that, here, those factors weigh in favor of transfer. See Motion at 10.

First, the Defendants argue that the Court should not give any deference to Sage Hospital’s choice of forum. See Motion at 10. The Defendants reiterate that New Mexico is neither Sage Hospital’s place of business nor the location where the events giving rise to Sage Hospital’s claims occurred. See Motion at 10. The Defendants assert that, in these circumstances, courts give no deference to the plaintiffs choice of forum. See Motion at 11 (citing Employers Mut. Cas. Co. v. Bartile Roofs, Inc., 618 F.3d at 1168 (“The plaintiffs choice of forum receives less deference ... if the plaintiff does not reside in the district. Courts also accord little weight to a plaintiffs choice of forum where the facts giving rise to the lawsuit have no material relation or significant connection to the plaintiffs chosen forum.”); WildEarth Guardians v. U.S. Forest Serv., No. CIV 11-3171, 2012 WL 1415378, at *3 (D.Colo. Apr. 24, 2012)).

Second, the Defendants assert that the other relevant factors also weigh in favor of transfer. See Motion at 11. The Defendants point out that: (i) they reached the challenged conclusions and took the challenged actions in either Arizona or the Washington, D.C. area; (ii) Sage Hospital is located in and does business solely in Arizona; and (iii) the documents, witnesses, and all other conceivable evidence for this case is located outside the District of New Mexico. See Motion at 11. The Defendants also state that, to the extent that this factor has any relevance, litigating the case in Arizona will not inconvenience Sage Hospital’s counsel, because they already try cases in Arizona on a regular basis. See Motion at 11. In the Defendant’s view, “[n]othing is stopping Plaintiff from bringing and litigating this case in Arizona, where it belongs.” Motion at 11.

2. The Response.

Sage Hospital responded to the Motion on December 11, 2014. See Response at 1. First, Sage Hospital asks the Court to deny the Defendants’ rule 12(b)(3) motion, because the District of New Mexico is a proper venue under both § 1391(e)(1)(A) and § 1391(e)(1)(B). See Response at 4-10. Sage Hospital argues that the District of New Mexico is a proper venue for this action under § 1391(e)(1)(A), because Dayish resides in New Mexico. See Response at 4. Sage points out that Congress amended § 1391 in the Federal Courts Jurisdiction and Venue Clarification Act of 2011, Pub.L. 112-63, 125 Stat. 758 (“Clarification Act”). Response at 4. Sage says that § 1391(c)(1) now reads: “For all venue purposes — (1) a natural person ... shall be deemed to reside in the judicial district in which that person is domiciled.” Response at 4 (quoting 28 U.S.C. § 1391(c)(l))(emphases in Response but not in statute)(omission in Response but not in statute)(internal quotation marks omitted). Sage Hospital contends that, because Dayish is domiciled in New Mexico, a plain-language reading of §§ 1391(c)(1) and 1391(e)(1)(A) indicates that the District of New Mexico is a proper venue for this case. See Response at 4 (citing Dayish Declaration ¶ 3, at 1).

Sage Hospital argues that, even applying the Defendants’ pre-Clarification Act residence standard, the District of New Mexico is a proper venue for this case under § 1391(e)(1)(A). See Response at 5. Sage Hospital contends that, under the pre-Clarification Act standard, a federal employee resides in any district in which he or she performs “a significant amount” of his or her official duties. Response at 6 (citing Bartman v. Cheney, 827 F.Supp. 1, 2 (D.D.C.1993)). Sage Hospital asserts that Hubbard and Dayish both perform a significant amount of their official duties in New Mexico. See Response at 6. Sage Hospital points out that: (i) five of the twelve healthcare facilities at which Hubbard directs programs and staff are located in New Mexico; (ii) forty percent of the Navajo Area IHS user population resides in New Mexico; and (iii) Sage Hospital and IHS negotiated its 2008 Annual Funding Agreement in New Mexico. See Response at 6-7 (citations omitted). Sage Hospital argues that, consequently, even if the Court applies the pre-Clarification residence standard, the District of New Mexico is a proper venue for this case under § 1391(e)(1)(A). See Response at 7.

Sage Hospital asserts that the District of New Mexico is also a proper venue under § 1391(e)(1)(B), because a substantial part of the relevant events in this case occurred in New Mexico. See Response at 8. Sage Hospital points out that three important events occurred in New Mexico: (i) Sage Hospital and the Navajo Area IHS negotiated the 2008 Annual Funding Agreement in Shiprock, New Mexico; (ii) after declining to renew Sage Hospital’s contract, IHS instructed Sage Hospital’s pharmaceutical supplier in Gallup to cut off supplies to Sage Hospital; and (iii) IHS used the Gallup Independent and the Navajo Times — newspapers which have large circulations in New Mexico — to inform Sage Hospital’s New Mexico patients that it was closing and that they should go to other facilities to receive treatment. See Response at 9. Sage Hospital acknowledges that some of the events giving rise to this suit occurred in Arizona, but states:

[T]he fact that substantial activities took place in district B does not disqualify district A as proper venue as long as “substantial” activities took place in district A, too. Indeed, district A should not be disqualified even if it is shown that the activities • in district B were more substantial, or even the most substantial.

Response at 9 (quoting First of Mich. Corp. v. Bramlet, 141 F.3d 260, 263-64 (6th Cir.1998)) (internal quotation marks omitted). In support of this proposition, Sage Hospital also cites Navajo Nation v. Urban Outfitters, Inc., 918 F.Supp.2d 1245 (D.N.M.2013) (Hansen, J.), in which the Honorable C. Leroy Hansen, United States District Judge for the District of New Mexico, noted that the fact that “some” relevant guts occurred in the forum state is a “significant enough connection” to respect the plaintiffs choice of forum. Response at 10 (quoting Navajo Nation v. Urban Outfitters, Inc., 918 F.Supp.2d at 1254-55) (internal quotation marks omitted).

Second, Sage Hospital asks the Court to deny the Defendants’ request to transfer the case to the District of Arizona. See Response at 10. Sage Hospital states that courts consider the following factors in ruling on a motion to transfer venue:

(1) the plaintiffs choice of forum, (2) the locus of operative facts, (3) the convenience and relative means of the parties, (4) the convenience of witnesses, (5) the availability of process to compel the attendance- of witnesses, (6) the location of physical evidence, including documents, (7) the relative familiarity of the courts with the applicable law, and (8) the interests of justice, including the interest of trial efficiency.

Response at 10-11 (citing Silver v. Brown, 678 F.Supp.2d 1187, 1204 (D.N.M.2009) (Browning, J.), aff'd in part and rev’d in part on other grounds, 382 Fed.Appx. 723 (10th Cir.2010)). Sage Hospital argues that the moving party must show that these factors favor transfer; if the moving party fails to meet its burden, the court should not disturb the plaintiffs choice of forum. See Response at 11 (citing Wm. A. Smith Contracting Co., Inc. v. Travelers Indem. Co., 467 F.2d 662, 664 (10th Cir.1972)). Sage Hospital says that, when analyzing a motion to transfer venue, the trial court must draw all reasonable inferences in favor of the non-moving party. See Response at 11 (citing Hancock v. Amer. Tel. and Tel. Co., Inc., 701 F.3d at 1260-61).

Sage Hospital contends that seven of the eight factors that the Court set forth in Silver v. Brown weigh against transfer and one factor is irrelevant. See Response at 11. Sage Hospital argues that the first factor — the plaintiffs choice of forum— weighs against transfer. See Response at 11. Sage Hospital maintains that courts typically give the plaintiffs choice of forum considerable weight in analyzing a transfer motion. See Response at 11 (citing Tex. E. Transmission Corp. v. Marine Office-Appleton & Cox Corp., 579 F.2d 561, 567 (10th Cir.1978)). Sage Hospital acknowledges that, to discourage forum shopping, a plaintiffs choice of forum is entitled to less weight when he or she brings suit in a foreign district, but contends that the Court should not be concerned about forum shopping, because the District of New Mexico is near Sage’s principal place of business. See Response at 12 (citing Waste Distillation Tech., Inc. v. Pan Amer. Res., Inc., 775 F.Supp. 759, 764 (D.Del.1991) (stating that “it is sufficient that the forum is near the plaintiffs principal place of business” for plaintiffs choice of forum to be entitled to deference)).

Sage Hospital asserts that the second factor — the locus of this case’s operative facts — also weighs against transfer. See Response at 12. Sage Hospital contends that, as it has already explained, a substantial part of the events giving rise to this suit occurred in New Mexico — including IHS and Sage Hospital’s negotiation of the 2008 Additional Funding Agreement and IHS’ instruction to Sage Hospital’s pharmaceutical supplier to stop supplying Sage Hospital. See Response at 12 (citing Emberton v. Rutt, No. CIV 07-1200 JB/RLP, 2008 WL 4093714, at *12-13 (D.N.M. Mar. 31, 2008) (Browning, J.)(holding that, where at least some of the operative events occurred in New Mexico, the Court found it not in the interests of justice or trial efficiency to transfer the case)).

Sage Hospital addresses the second, fourth, and sixth factors together, asserting that they all weigh against transfer. See Response at 12-13. Sage Hospital explains that both the Navajo Area IHS office and Sage Hospital’s facilities are closer to the United States District Court in Albuquerque than to the United States District Court in Phoenix. See Response at 13 (stating that IHS’ office is 168 miles from Albuquerque but 282 miles from Phoenix, and Sage Hospital’s facilities are approximately 192 miles from Albuquerque but 272 miles from Phoenix). Sage Hospital asserts that, because the majority of the witnesses and relevant documents in this case are located in and around Sage Hospital’s facilities and the Navajo Area IHS office, the District of New Mexico is a more convenient forum than the District of Arizona for the parties, the witnesses, and for obtaining the relevant documents in this case. See Response at 13-14. Sage Hospital adds that the Defendants’ actions have put Sage Hospital “on its heels financially” and it cannot afford the extra expense of trying this case in the District of Arizona. Response at 14 (citing Silver v. Brown, 678 F.Supp.2d at 1204 (stating that the Court may take into consideration the parties’ relative means in deciding whether to grant a motion to transfer venue)). Sage Hospital argues that, consequently, the second, fourth, and sixth factors all weigh against transfer. See Response at 14.

Regarding the fifth factor — the availability of process to compel the witnesses’ attendance — Sage Hospital points out that there is no issue on the availability of process in the New Mexico, Arizona, or Washington, D.C. See Response at 11 n. 9. Sage argues that, as a result, this factor is irrelevant. See Response at 11 n. 9. Sage Hospital asserts that the seventh factor— the relative familiarity of the courts with the applicable law — weighs against transfer, because the District of New Mexico has extensive experience interpreting IS-DEA’s federal contracting requirements, while the District of Arizona and the United States Court of Appeals for the Ninth Circuit do not. See Response at 14-15 (citing Ramah Navajo Sch. Bd. v. Sebelius, No. CIV 07-0289 MV/SMV (D.N.M. May 9, 2013) (Doc. 143) (Vazquez, J.); S. Ute Indian Tribe v. Leavitt, 497 F.Supp.2d 1245 (D.N.M.2007) (Johnson, J.); Crownpoint Inst. of Tech. v. Norton, No. CIV 04-0531 JP/DJS (D.N.M. Sept. 16, 2005) (Doc. 86)(Parker, J.)).

Sage Hospital asserts that the eighth and final factor — the relative congestion of the courts’ dockets — also weighs against transfer. See Response at 15-16. Sage Hospital contends that the Court’s docket is less congested than the District of Arizona. See Response at 15 (citing U.S.' District Court — Caseload Profile^ filed December 11, 2014 (Doc. 14-2)). Specifically, Sage points out that: (i) the District of Arizona has 443 pending cases per judge while the District of New Mexico has 439; (ii) the District of Arizona has 787 weighted filings per judge while the District of New Mexico has 600; (iii) the District of Arizona has a median time of 7.7 months from filing to disposition while the District of New Mexico has a median time of 10.3 months; and (iv) the District of Arizona has a median time of 29.2 months from filing to trial while the District of New Mexico has a median time of 26.9 months. See Response at 15-16 (citation omitted). Sage Hospital argues that, consequently, the relative congestion of the courts’ dockets also weighs against transferring this case to the District of Arizona. See Response at 16.

3. The Reply.

The Defendants replied to the Response on December 29, 2014. See Reply at 1. The Defendants first address Sage Hospital’s argument that the District of New Mexico is a proper venue because the new amendment to § 1391(c)(1) provides that a natural person resides wherever he or she is domiciled. See Reply at 2. The Defendants contend that § 1391(c)(1) defines only the residency of “natural persons,” and does not apply to federal employees sued in their official capacity. Reply at 2. The Defendants argue that § 1391(e)(1)— which applies to “civil action[s] in which a defendant is an officer or employee of the United States or any agency thereof acting in his official capacity” — governs this case. Reply at 2 (quoting 28 U.S.C. § 1391(e)(1)).

The Defendants point out that the Supreme Court of the United States has held that “official-capacity suits generally represent only another way of pleading an action against an entity of which an officer is an agent” and do not constitute an action against officers themselves. Reply at 3 (quoting Monell v. N.Y. Dep’t of Soc. Servs., 436 U.S. 658, 690 n. 55, 98 S.Ct. 2018, 56 L.Ed.2d 611 (1978))(internal quotation marks omitted). The Defendants state that, in other words, “state officers sued for damages in their official capacity are not persons for purposes of the suit because they assume the identity of the government that employs them.” Reply at 3 (quoting Hafer v. Melo, 502 U.S. 21, 27, 112 S.Ct. 358, 116 L.Ed.2d 301 (1991))(in-ternal quotation marks omitted). The Defendants argue that, consequently, suing Dayish in his official' capacity is the legal equivalent of suing IHS. See Reply at 3. The Defendants assert that, because IHS cannot be considered a “natural person” under § 1391(c)(1), it follows that § 1391(c)(1) cannot apply to Dayish as an official-capacity defendant. See Reply at 3.

The Defendants also challenge Sage Hospital’s alternative argument that Dayish and Hubbard reside in New Mexico because they perform a significant amount of their duties in New Mexico. See Reply at 3. The Defendants argue that the Court should not adopt Sage Hospital’s approach, because it is a minority view that began with a case — Doe v. Casey, 601 F.Supp. 581 (D.D.C.1985), rev’d on other grounds, 796 F.2d 1508 (D.C.Cir.1986) — which wrongly imported its reasoning from the state context into the federal context. See Reply at 4. The Defendants point out that one of the eases that the D.C. District Court cited in Doe v. Casey contradicted its holding, because it stated that “a federal official has only one official residence, but that is not necessarily true of a state official.” Reply at 4 (citing Fla. Nursing Home Ass’n v. Page, 616 F.2d 1355, 1360 (5th Cir.1980), rev’d on other grounds, 450 U.S. 147, 101 S.Ct. 1032, 67 L.Ed.2d 132 (1981)). The Defendants argue that the other case that the D.C. District Court cited in Doe v. Casey had nothing to do with its holding, because it concluded that an officer’s official residence, rather than his or her personal residence, controls for venue purposes. See Reply at 4 (citing Lamont v. Haig, 590 F.2d 1124, 1128 n. 19 (D.C.Cir.1978)).

The Defendants assert that, moreover, the reasoning behind Doe v. Casey’s holding “does not quite work.” Reply at 4. The Defendants point out that “the potential inconvenience to federal officials resulting from a rule recognizing multiple official residences is far greater than for state officials, who can never be deemed to reside in another state.” Reply at 4 (quoting Cheeseman v. Carey, 485 F.Supp. 203, 207 (S.D.N.Y.1980))(internal quotation marks omitted). The Defendants contend that the fact that a plaintiff can generally sue federal officials in the district in which the plaintiff resides under § 1391(e) makes a multiple-residence rule far less necessary in cases against federal officials. See Reply at 4 (citing Cheeseman v. Carey, 485 F.Supp. at 207).

The Defendants argue that, even if the Court disagrees with the majority rule and instead follows Doe v. Casey, it should still hold that Hubbard and Dayish do not reside in New Mexico, because they do not perform a significant amount of their official duties in New Mexico. See Reply at 5. The Defendants point out that Sage Hospital’s argument relies solely on the fact that the Navajo Nation is located partly in New Mexico. See Reply at 5. The Defendants assert that, while Hubbard and Dayish have official duties relating to New Mexico, they performed those duties in Arizona. See Reply at 5 (citing Dayish Declaration ¶ 3, at 1)(“I perform all of my official duties in Window Rock, Arizona.”); Hubbard Declaration ¶ 5, at 2 (“I perform the significant part of my official duties in Window Rock, Arizona.”).

The Defendants point out that Sage Hospital also fails to address the Defendants’ argument that, if the Court adopts the multiple-residences rule, it should also adopt the test for determining “which residences matter for state officials.” Reply at 5-6 (citing Republican Party of N.C. v. Martin, 682 F.Supp. 834, 836 (M.D.N.C.1988) (examining, among other things, “the relationship of the defendant’s activities within the district to the cause of action”)). The Defendants assert that Sage Hospital does not attempt to argue that any of Defendants’ official duties in New Mexico have anything to do with Sage Hospital. See Reply at 6. The Defendants assert that Sage Hospital cannot make such a showing. See Reply at 6.

The Defendants challenge Sage Hospital’s argument that the District of New Mexico is a proper venue under § 1391(e)(1)(B), because “a substantial part of the relevant events occurred in New Mexico.” Reply at 6. The Defendants say that Sage Hospital’s argument rests on three facts: (i) IHS’ and Sage Hospital’s signing of the 2008 Additional Funding Agreement in New Mexico; (ii) IHS’ instructions to Sage Hospital’s supplier in Gallup to stop supplying pharmaceuticals to Sage Hospital; and (iii) IHS’ statement to Navajo area patients after the Declination that they could receive medical care at two locations in Arizona and one location New Mexico. See Reply at 6. The Defendants contend that there are two problems with this argument. See Reply at 6.

First, the Defendants argue that none of the events to which Sage Hospital points “gave" rise to the claims in this case.” Reply at 6 (quoting 28 U.S.C. § 1391(e)(l)(B))(internal quotation marks omitted). The Defendants argue that the signing of the 2008 Additional Funding Agreement has nothing to do with the Defendants’ decision not to sign a different contract six years later. See Reply at 6. The Defendants assert that, similarly, IHS’ statements about other medical providers are irrelevant to Sage Hospital’s claims. See Reply at 6.

Second, the Defendants assert that none, of the events to which Sage Hospital points are “substantial.” Reply at 6 (quoting 28 U.S.C. § 1391(e)(l)(B)(explaining that venue is proper in any district where “a substantial part of the events or omissions giving rise to the claim occurred”)). The Defendants argue that neither the signing of a different contract six years before the Declination nor a few communications telling Navajo Indians to go to other healthcare facilities is substantial, because those events did not give rise to Sage Hospital’s claims. See Reply at 7 (citing Tillotson v. City of El Paso, No. CIV 09-0963 JB/CG, 2010 WL 597993, at *4 (D.N.M. Jan. 29, 2010) (Browning, J.)(holding that, where “almost every event described in the Amended Complaint occurred in El Paso,” except the plaintiffs “dismissal from Thriftway Supermarkets” in New Mexico, no “substantial” part of the events or omissions giving rise to the claim occurred in New Mexico)).

Responding to Sage Hospital’s transfer-of-venue argument, the Defendants contend that the eight-factor test that Sage Hospital cites from Silver v. Brown is “not at all helpful,” because the “main reason” that the Court should transfer the case lies with factors two and three: the locus of operative facts and the convenience of the parties, respectively. Reply at 7. In the Defendants’ view, the balance of the remaining factors is largely neutral. See Reply at 7.

Addressing the first factor — the plaintiffs choice of forum — the Defendants argue that “when the operative facts underlying the cause of action did not occur within the forum chos