WakeMed And Rex Battle For High-Growth Areas
Thursday, May 08, 2008 - 09:33 PM
Two Wake County hospital systems are revisiting proposals for new projects in some of the fastest-growing areas of the county after denials from the state. Photo By: NBC17
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RALEIGH, N.C. - Two Wake County hospital systems are revisiting proposals for new projects in some of the fastest-growing areas of the county after denials from the state.
The Division of Health Service Regulation denied four different proposals from WakeMed and Rex Healthcare for services in western and southern areas of the county, including:
*A Rex plan for an urgent care, diagnostic and cancer center at the corner of McCrimmon Parkway and N.C. 55 in west Cary
*A second urgent care and diagnostic center by Rex at the corner of Avent Ferry Road and N.C. 55 in Holly Springs
*WakeMed’s proposal for a freestanding emergency department in the Brier Creek area at T.W. Alexander and ACC Boulevard
*A proposed WakeMed South Healthplex in Garner. Two locations were proposed, one near the White Oak shopping center off Hwy. 70 and another off Hwy. 50.
State officials said in their written responses to the hospitals that both “failed to adequately demonstrate that the proposed project would not result in the unnecessary duplication of existing or approved health service capabilities or facilities…”
The report specifically stated that Rex’s proposal neglected to account for services already provided at WakeMed’s freestanding emergency department in Apex. WakeMed was questioned about its projections for emergency traffic at Brier Creek. The state pointed out that the emergency room at nearby Rex Hospital was underutilized in 2007.
But Steve Burriss, Vice President of Ambulatory Care at Rex Hospital, said Rex intends to appeal the state’s decision. He said the hospital has done its due diligence and the need is there.
“We really try work hard to look at the communities, to make sure that where areas are underserved, that we try to meet that need,” said Burriss. “If we file competing applications at the same time, the state will resolve those issues.”
But health care advocates agree with the state’s decision, saying hospitals are not only duplicating services, but they also are targeting facilities for high growth areas because they need to attract more insured patients.
“The health system is pushing more costs onto patients through this crazy health system, through these health plans with the multi-thousand dollar deductibles,” said Adam Searing, of the N.C. Health Access Coalition. “Now hospitals are scrambling to find the best mix of paying patients they can so that they can stay in the blue and not in the red.”
WakeMed administrators have not yet decided how they will respond to the state’s denial, but defended their proposals, saying that the whole community benefits from access to emergency care.
“The reality is that when we open an emergency department, we’re serving everyone in that area,” said Stan Taylor, Vice President of Corporate Planning. “And there’s a significant part of the population that does not have insurance that shows up at that E.D. for their care.”
Taylor maintains that urgent and emergency care facilities can co-exist in a market because they don’t target the same patient population. As Wake County approaches a population of one million people, Taylor agreed that the need is there.
“These facilities take several years to get on board,” he said. “We’re going to need more medical facilities in this county to meet the needs and I think all of these services are going to be well-utilized.”
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