The Master Plan: We Want a Hospital

December 12, 2011

State Planning Board says YES, but…

The area’s basic headlines 24 hours after the meeting read, ‘Hackensack University Medical Center, another step closer to reopening a community hospital.’ The State Health Planning Board (SHPB) voted 5-1 at the Nov. 29 meeting, recommending Commissioner Mary O’Dowd approve HUMC’s Certificate of Need (CN) application, in combination with the DOH staff report’s 13 recommendations.

The Commissioner alone has the final decision to approve or deny. Many expect a response sooner then later, possibly before year’s end. Unfortunately any anticipated result that completes the recent circle of support, has been assured a legal challenge by the opposition.

The effort to resurrect Pascack Valley Hospital’s phoenix from the ashes of bankruptcy has been a 4-year struggle. A process weaved amid a cast of competing priorities, business missteps, distorted information, industry uncertainties and political theatrics, all stirred in a brew where money is the prime ingredient.

The Department of Health and Senior Services’ staff submitted a 34-page report to the SHPB, recommending support for HUMC’s proposal to open a 128-bed hospital. It was discussed in the Board’s deliberations. The resulting 5 affirmative votes had one observation injected onto the record.  That caveat of opinion cited the travel concerns raised appeared overstated, based on a Board member’s view of travel times experienced in southern New Jersey.

That ‘caveat,’ while debatable, will surely be seized upon in any legal challenge, offered along with quotes from various reports citing too many area beds already.  The reports are ultimately opinions that the courts have previously noted do not preempt any legislated intent. But the arguments of travel time hazed with a mixture of hospital finance and politics, in a court room, could become molded into another obstacle in any environment of over confidence.

HUMC’s confidence clothes the hospital in waiting with large banner.

Valley Hospital and Englewood Hospital Medical Center have publicly stated they will file a legal challenge in an effort to stay any approval that reopens a hospital in Westwood. Why — because they stand to lose a projected 2-4% respectively, in their sales. They have suggested that that will be enough to undermine their financial health.

The reality to maintaining a strong health system, the intent behind a CN process, suggests that hard decisions are needed to limit the number of hospitals and assure the financial stability of the ‘system.’ The opposition will highlight the court has recognized that legislated intent is an “important protective tool in the management of the health of urban hospitals,” (Virtua, supra, 194 N.J. at 434, 945 A.2d 692). A tool that, in their view, shouldn’t be manipulated by the politics; unless it benefits them.

Without a legal stay of any affirmative CN decision, the investment by HUMC and Legacy will probably be expedited. History suggests that that capital outlay will most likely transform any further legal efforts by the opposition operatively moot. The point here is to note that this process isn’t over until all the legal challenges, whatever they may be, are put to bed; hopefully an HUMC North bed.

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1 Comment

  1. When does this all end? How much longer can Valley or Englewood drag this out?

    Comment by Betty — December 13, 2011 @ 11:22 AM


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