Volunteers said the problem began when Monongalia County condensed the committees overseeing the park into one.
Highland Hospital plans to convert the former United Hospital Center building into a 150-bed mental-health facility.
Fairmont General Hospital challenged Highland's plans last year, because they compete the same specialized medical field.
"We're in it for the long haul, we welcome the appeal process and we will continue to fight for such a worthy and needed project in West Virginia", said Jim Strawn of Highland Hospital.
The Health Care Authority's ruling said the Highland Hospital project will cost more than 43 million dollars.
Fairmont General has until Jan. 3 to file the appeal.
You can read the Health Care Authority's ruling here.