HomeMy WebLinkAbout2005-01-05 Historical Commission MinutesAd Hoc Hospital Development Committee Meeting
January 5, 2005
The meeting convened at 7:30 p.m. in the Town Hall Conference Room, M` Sowell
Street, Reading, Massachusetts. Present were Chairman Bruce Cerullo, Vice Chairman
Nelson Burbank, John Daly, Neil Sullivan, Colleen Seferian, Bob LeLacheur and George
Hines. Also present were Dorothy Foxon from Council on Aging, Bob Rulison from
Hallmark Health, Dorothy Kelly-Flynn from Winchester Hospital, Town Manager Peter
Hechenbleikner, and guest Ray Cryan from the Massachusetts Department of Public
Health Care Quality Division.
On motion by Sullivan seconded by Daly, the Minutes of December 1, 2004 were
approved as submitted by a vote of 6-0-0.
The attendees introduced themselves to each other. Ray Cryan who is with the
Department of Public Health Care Quality Division and is also a Reading resident spoke
to the committee about regulatory issues related to the development of a new hospital or
development of a hospital satellite in Reading. He noted that if the Town of Reading
wanted to build a hospital, the State would not be an obstacle. There is no moratorium on
hospital development in the Town of Reading.
The process would be to file a determination of need which is required for any
development over $10 million in value. Part of the filing would be architectural plans for
a facility that the community would want to build. The biggest obstacle would be permits
for services. For example, a separate determination of need is required for MRI's,
radiology functions, etc. The determination of need is required to show that these
facilities are financially feasible. This process includes going before the Public Health
Council and public hearings.
Ray Cryan noted that going through the process of approval for a hospital would be fairly
expensive and lengthy. Development for architectural plans and doing all of the other
necessary paperwork would be extensive. Local issues could be more problematic such
as siting, financing, etc. The people who work in the Department of Public Health can be
helpful in this process.
The question was asked as to what the process would be for a satellite facility. Ray
Cryan noted that the Winchester Hospital has 15 satellite facilities and Hallmark has 16
sites. The process of approving a satellite facility is very simple. It requires only the
filing of architectural plans, survey by the Department of Public Health, and then
approval.
Bruce Cerullo asked if there has been new hospital start ups in the past ten years that we
could use as a model. Ray Cryan indicated that there was not. There have been
additions, and St.Vincent's in Worcester is new but it was a replacement hospital.
Hospital Development Committee Meeting - January 5 2005 - Page 2
Bruce Cerullo asked for a name of someone that we could talk to who has gone through
the process.
Ray Cryan noted that the DPH could come back to the Committee with a basic cost for
architectural drawings and review fee for a typical 100 bed facility. Review fees have
increased recently because HCQ is self supporting.
Bruce Cerullo noted that we need to credibly look at where a hospital can be built. The
issues will be regulatory, financial and siting. Ray Cryan noted that the $4 million
available through the Hospital Trust would probably be adequate to take care of filing
fees, development of plans, etc. He also noted that for a 100 bed hospital, you would
probably need about 50 acres. Hospitals have been closing - Boston Regional closed
recently. The only real impact was on emergency room services. Beyond that, there is a
surplus of beds. Ray Cryan will get us some information on what the demand for
hospital beds is in the Northshore Area, and how many beds there are available.
Ray Cryan noted that there is a moratorium on nursing homes, since there are
approximately 4,000 empty beds statewide. There was discussion on whether an urgent
care satellite facility would meet the definition of a hospital and would be more realistic.
The Committee went back to discuss the issue of the cost to process a proposed new
hospital. We can get some information on architectural fees and consulting fees. Ray
Cryan noted that in Amherst, the consulting fee, just to file a change of ownership, was
$10,000.
The representatives from Hallmark and from Winchester indicated that they could
provide cost estimates for processing an application including architectural costs for a
100 bed acute care hospital.
George Hines again focused on an urgent care facility. The definition was some kind of a
walk in facility such as Health Stop used to be but not an emergency room. This could be
a satellite of an existing hospital like Hallmark, Winchester or one of the Boston
hospitals. Ray Cryan noted that the process is much easier. The biggest expense would
be the cost of developing architectural plans. For satellite facilities, the Department of
Public Health does not look at need it does look at the financial feasibility. If there is
to be an MRI or some of the other new technologies, that would require a determination
of need by the Department of Public Health. If an urgent care facility was to be an
emergency room, it would have to have beds like a hospital.
Ray Cryan noted that as a Reading resident, he would be opposed to the Town running a
hospital and all present, including the Town Manager, agreed.
Neil Sullivan thought that we should talk to the doctor who used to run the Health Stop
for the purpose of finding out why the Health Stop system failed. Ray Cryan noted that it
was the lack of working capital. Neil Sullivan wondered if there were any other
benefactors who could contribute to the hospital trust.
Hospital Development Committee Meeting=January 5, 2005 - Page 3
Ray Cryan noted that satellite facilities are not just urgent care facilities. Some satellites
deal with specific issues, some are for rehab, etc.
Bob LeLacheur asked if the proximity to New Hampshire has any effect on the viability
of who might be interested in developing or partnering with the town. Ray Cryan noted
that the New Hampshire climate is basically unregulated and there is probably nobody
operating in New Hampshire who would be interested in operating in Massachusetts.
The Committee thanked Ray Cryan for attending, and the Committee took a two minute
break while the Chairman compiled the results of the Committee's survey.
The Committee reconvened and Bruce Cerullo reviewed the results of the questionnaire.
The very strong consensus of the Committee was that they will be successful if the
outcome of the effort:
1. Honors the primary intent of the Trust to fund the establishment of a hospital
in Reading, or alternatively establishes the primary intent of the Trust to be
factually unachievable.
2. Results in the opening of, by early construction or existing space, some type
of new medical facility in Reading; e.g., urgent care center, out patient clinic,
etc.
3. Honors the secondary intent of the trust to defray medical expenses for needy
citizens (supported by the 1988 cy pres agreement).
These are the top three categories on which there was consensus. The next highest
outcome was that they should be "consistent with Reading community development goals
and other Town objectives."
A copy of the compilation is attached to these Minutes.
Bruce Cerullo noted that we need to make sure that we focus our discussions in part on
the opportunity that exists to provide care to the needy in Reading.
Colleen Seferian wondered how many people in Reading have health insurance. The
Town Manager suggested alternatively perhaps Winchester Hospital and Hallmark could
let us know how much free care they give to Reading residents.
George Hines asked that we set up a schedule for decision making. It seems that our first
decision is whether a hospital is viable. We should set up a schedule for making that
determination, and then the major work of the Committee will begin. Bruce. Cerullo
noted that he would do that.
The next meeting is January 26th in the Conference Room.
Hospital Development Committee Meeting - January 5, 2005 - Page 4
On motion by Burbank seconded by Sullivan, the Hospital Development Committee
voted to adiourn their meeting of January 5, 2005 at 8:49 p.m. by a vote of 7-0-0.
Respectfully submitted,
Secretary