State Denies Competing Hospital Bids

As of Saturday, December 10, 2011

The state has ruled against FirstHealth of the Carolinas and Cape Fear Valley Health System, saying neither can build a 65-bed hospital.

FirstHealth proposed constructing its hospital in Hoke County, while Cape Fear Valley wanted to build its facility on Ramsey Street in Fayetteville.

The two health systems have been battling in Hoke County for years, with each appealing last year’s decision by the state to allow Cape Fear Valley to build a 41-bed hospital and FirstHealth to construct an eight-bed hospital.

The appeals effectively prevent either entity from starting construction.

Meanwhile, each filed a new certificate of need (CON) application earlier this year with the N.C. Division of Health Service Regulation seeking to build a 65-bed hospital. The division issued its finding on Dec. 2 that neither is “approvable standing alone.”

“Therefore, both applications are denied,” the finding said.

Both sites are located within the Cumberland-Hoke County Acute Bed Service Area, as defined by the 2011 State Medical Facilities Plan.

David J. Kilarski, CEO of FirstHealth of the Carolinas, said in a statement Friday that FirstHealth was “disappointed” with the decision.

“We will review the state’s findings over the next couple of weeks and determine our next course of action,” Kilarski said. “Although this application was denied, we will continue to pursue all efforts to build a much-needed hospital in Hoke County.”

The finding states that the application was denied because FirstHealth “did not adequately demonstrate the need for a 65-bed hospital in Hoke County in addition to the approved 41-bed hospital,” nor did it “adequately demonstrate that projected utilization is based on reasonable, credible and supported assumptions.”

Last June, FirstHealth submitted its application for a CON that would allow it to build a 65-bed hospital, a $100 million project that would supersede previous plans.

FirstHealth initially proposed building an eight-bed hospital at a projected cost of $34.1 million.

Either project would be constructed on a 30-acre site on U.S. 401 about halfway between Raeford and the Cumberland County line.

Cape Fear Valley has proposed a $92 million, 41-bed hospital on 60 acres of land it has purchased off U.S. 401 closer to the Hoke-Cumberland line, a location about 3.5 miles east of the FirstHealth site.

Contact Ted M. Natt Jr. at tnatt@thepilot.com.

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Toyboy52 1 year, 5 months ago

If anyone wants to know why the cost of health care is so high, you only need to look at the Socialistpolicies of The State of North Carolina. The State requires a "need" before a hospital is built. That means that no healthcare jobs can be created and no construction jobs can commence unless a bureaucrat can be convinced that the project will be profitable or will not adversely affect the profits of other hospital businesses. In the meantime, every patient of First Health has added to its bill the cost of experts and paperwork necessary to prove to bureaucrats that convenient healthcare is "necessary".

The job of government is not to insure profit or only allow what is "needed". The job of government is to properly oversee and regulate safety once a project is built. Should we have 6 hospitals in a couCounty or only one? If you have many hospitals, perhaps one hospital will find a way to furnish healthcare cheaper. If the state insures that the healthcare is safe and effective, then we should welcome the competition.

Without free markets, the poor residents of Hoke County will continue to have to go to Fayettteville or Pinehurst to see a doctor. And in an emergency, may die for the sake of a bureaucrat and needless regulation.

fugitiveguy 1 year, 5 months ago

I have done my own study. My findings are that wait times in the ED at CFV are in the neighborhood of 6-8 hrs to see a doctor routinely and 4 hours at MRH on a bad day excluding the direst of emergencies. If that doesn't clearly indicate the need for a facility in Hoke County I don't know what does. Oh, and the cost of my study...about 40 cents for a diet coke.

Toyboy52 1 year, 5 months ago

We need to demand that our new legislative majority to do what it says it wants to do and dedicate itself to repealing the law that requires a "certificate of need" prior to building a medical facility

sgmartin 1 year, 5 months ago

So do you think the cost of health care goes down when there are more hospitals? Most studies I see cite rising health care costs because those facilities need to be paid for and demand is artificially increased. Read "Overtreated" and get back to me.