HomeMy WebLinkAbout2005-01-26 Hospital Development Commitee MinutesHospital Development Committee Meeting
January 26, 2005
The meeting convened at 7:30 p.m. in the Town Hall Conference Room, 16 Lowell Street,
Reading, Massachusetts. Present were Chairman Bruce Cerullo, Vice Chairman Nelson
Burbank, Committee Members Bob LeLacheur, John Daly and Neil Sullivan. Also present were
Town Manager Peter Hechenbleikner, Bob Rulison from Hallmark Health and Dorothy Kelly-
Flynn from Winchester Hospital.
On motion by Burbank seconded by Sullivan, the Minutes of January 5, 2005 were
approved by a vote of 5-0-0.
Chairman Bruce Cerullo handed out a one page sheet summarizing the results of their survey on
"defining what committee success looks like." This is a compilation of the results of the survey
done by the Committee. Additionally, Chairman Cerullo handed out a sheet entitled "Building a
New Acute Care Hospital in Reading that indicated the cost range would be $56.25 million to
$155.5 million.
The Town Manager handed out an e-mail from Dorothy Kelly-Flynn of Winchester Hospital
which also had some cost estimates for a hospital ($65.1 million) and other demographic data
about the community. Finally, in the packet that went out reminding members of the meeting
was an e-mail from Ray Cryan for the hospital legal opinion indicating in summary that "as a
result, it does not seem possible that there is a location in the Commonwealth that could
demonstrate sufficient need for a new acute care hospital and, therefore, have a DON application
that could be approved."
Vice Chairman Nelson Burbank and John Daly both felt that the material from the State is pretty
clear that building a hospital is not likely. That was the consensus of the entire Committee.
Dorothy Kelly-Flynn went through the material that she had submitted. Building a 100 bed
hospital would cost a minimum of $65 million. Their data would indicate that to meet the Town
needs, a 23 bed hospital for the Town would be needed plus two obstetrics beds. It would be
very unlikely that such a facility could ever be built and operated. The question was raised as to
how Lahey got approval to add on to their hospital. It was noted that this is not a community
hospital, it is a regional and, in fact, an international hospital. There was no opposition to this.
Bob Rulison noted that they had their architect look at the cost of building a 100 bed hospital,
and the cost estimates were $76 million to $94 million. Construction costs are $250-$300 per
square foot.
Based on the discussion, it was decided that Chairman Cerullo, on behalf of the Committee,
would go to the Board of Selectmen on their February 1, 2005 meeting and give them a report.
Additionally, the Committee changed their next meeting to February 9, 2005, rather than
February 16, 2005.
Hospital Development Committee Meeting - January 26, 2005 - Page 2
The Committee got involved in a discussion about how to move forward. The range of options
are to leave things exactly as they are, or to move forward with a bricks and mortar solution.
The options are everything in between. There was discussion about going to "stake holders" in
health care in the community.
Vice Chairman Burbank raised the question as to whether or not there is a need for a critical care
facility, satellite facility or an emergency room. If there are 15 satellite facilities for Winchester
and 15 for Hallmark, do we need another satellite facility? Dorothy Kelly-Flynn noted that
building an emergency room is not an option. An emergency room has to be attached to a
hospital because of the need for beds.
Chairman Cerullo put a list on the whiteboard showing the list of options. The hospital build
options and emergency room options can be crossed out.
Vice Chairman Burbank asked about the Wilmington facility. He thought that it was an
emergency room but it was noted that it is an urgent care facility along with doctors' offices, and
not an emergency room.
Bob Rulison noted that when Hallmark took over the Malden Hospital, they developed it into a
10 hour a day urgent care facility.
Chairman Cerullo suggested that we just confirm with the Department of Public Health to get an
objective viewpoint of whether or not we can build an emergency room without a`hospital.
Bob LeLacheur asked about an out-patient clinic, and where that would fit into the scheme of
things. An out-patient clinic could be multi-specialty, or it could have an array of physicians.
Chairman Cerullo asked the question what does Reading need and went around the room. The
Town Manager indicated that he felt there was a need for urgent care in Reading. Chairman
Cerullo noted that urgent care facilities tend to lose money by themselves. Bob Lelacheur asked
what the State regulates in terms of urgent care facilities. The feeling was that they would
regulate it for things like an MRI. Bob LeLacheur felt that we need to look at the revenue side of
things, not just what the costs are.
Chairman Cerullo noted that the Town is hopefully not going to be in the business. Therefore,
we would need to have any partner determine what is feasible based on the needs that the Town
has identified.
Neil Sullivan felt that we should serve Reading, although not deny services to others. Those who
can pay should pay and others would not. Vice Chairman Burbank felt that we should ask other
providers to come in and talk to us and tell us what they feel the Committee's needs are.
Bob Rulison noted that Hallmark would not be interested in a stand alone urgent care facility.
Dorothy Kelly-Flynn noted that they would not be either - they have one in Wilmington.-
Hospital Development Committee Meeting= January 26, 2005 - Page 3
Vice Chairman Burbank asked who owns the Winchester facility in Reading. The Town
Manager noted that Winchester Hospital put this together and he believes sold the offices as
- condos.
There was discussion about how we get at the possibilities that exist. Vice Chairman Burbank
noted that it is not the worst thing in the world to have the Trust Fund available as it is to help
out those who need help.
John Daly thought that Bob Cummings should come in and talk with the Committee. The Town
Manager noted that Mr. Cummings is not only one of the Trust Fund Commissioners but is also
on the Board of Directors of Hallmark.
Bob Rulison talked about health care assessment for communities. They've done them for
Medford and Malden. He will get us samples of such assessments.
On motion by Burbank seconded by LeLacheur, the Hospital Development Committee
adjourned their meeting of January 26, 2005 at 8:50 p.m. by a vote of 5-0-0.
Respectfully submitted,
Secretary