States grant CON, competitors dissatisfied
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COLUMBIA, SC – Carolinas Healthcare System, based in Charlotte, N.C., has been granted a Certificate of Need (CON) by the South Carolina Department of Health and Environmental Control to construct a 64-bed hospital in Fort Mill, S.C.
The department’s decision was the latest step in an ongoing battle between three healthcare organizations for market share in the region.
The new facility, to be called Carolinas Medical Center-Fort Mill, was chosen over applications submitted by the two competing health systems. Presbyterian Healthcare System, also in Charlotte, had proposed to build a 64-bed hospital and Piedmont Medical Center in Rock Hill, S.C., wanted to construct a 100-bed hospital.
Beverly Brandt, chief of DHEC’s Bureau of Health Facilities and Services Development, said the Carolinas application was found to most fully comply with the regulatory instructions issued by Judge Carolyn Matthews of the South Carolina Administrative Law Court.
According to Brandt, Matthews’ order charged DHEC with determining which of the three applications, if any, most fully complied with the requirements, goals and purposes of the CON program, the S.C. Health Plan, project review criteria outlined in the regulations and DHEC’s regulations in general.
“We were additionally required to provide written findings as to which applicant best met the project review criteria and why,” Brandt said. “These criteria include items such as community need, financial feasibility, cost containment and adverse impact upon other facilities.”
CON programs are designed to promote cost containment and prevent unnecessary duplication of healthcare facilities and services. But some have suggested that the most politically savvy hospitals have more success in CON applications than other facilities.
The Fort Mill hospital saga began over six years ago. In 2006, DHEC approved a CON for Piedmont to construct a hospital, but CHS and Presbyterian challenged. An administrative court judge ruled in 2009 that DHEC misinterpreted the state’s health plan in awarding the certificate to Piedmont, and last year the three health systems reapplied.
Chris Hummer, president of Carolinas Medical Center-Pineville, took the lead role in the Fort Mill project. He said that Carolinas’ commitment to the region “has been unparalleled for many years,” and in the wake of the CON decision the planning and design process for the new medical center would begin over the next several months.
“We also intend to work closely with local and state officials to move the development process along as quickly as possible so CMC-Fort Mill can become a reality,” Hummer said.
The other two health systems have suggested that the fight is not yet over, however. DHEC’s decision only becomes final 15 calendar days after notice of the decision has been mailed. The competing systems are allowed to file a written request for final review, which could extend the process.
“We’re very disappointed with state’s decision to deny our application,” said Paula Vincent, senior vice president of operations for Presbyterian Hospital. “We strongly believe that Presbyterian Hospital Fort Mill best met the criteria for the new hospital.”
Piedmont Medical Center president and CEO Charles Miller said DHEC's decision would have “major negative implications on both Piedmont Medical Center and the entire healthcare system and economy" of the region.
Both health systems are expected to file appeals, although Vincent and Miller were noncommittal in their statements.
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