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Novant gets initial OK
Clemmons hospital clears hurdle; Baptist's birthing center denied
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Published: December 24, 2008
The odds of having two hospitals four miles apart improved dramatically yesterday with state regulators' conditional approval of Novant Health Inc.'s second application for a $96 million hospital in Clemmons.
The N.C. Division of Health Service Regulation also told Wake Forest University Baptist Medical Center that it did not approve its certificate-of-need, or CON, application for a birthing center at a proposed replacement hospital in Davie County.
In August, state regulator Martha Frisone conditionally approved Baptist's third application for a 48-bed, $100 million hospital in Advance, which does not include a birthing center. That approval was appealed by Novant on Sept. 5.
Sallye Liner, the president of Forsyth Medical Center , said, "We are very pleased with the state's decision to allow us to move forward with our plans to bring a modern and convenient new hospital to Clemmons."
Donny Lambeth, the president of N.C. Baptist Hospitals Inc., said that it will review the state's decision on Novant's proposed 50-bed Clemmons Medical Center before deciding if it will appeal.
"We must point out that today's decision has no effect on the conditional certificate of need we received Aug. 28 to replace Davie County Hospital," Lambeth said. "We continue to make plans for the replacement hospital, pending the resolution of appeals."
State regulators typically do not comment on decisions until they have released their full report, which likely won't occur until early January because of the holidays.
What is clear is that the conditional approval of a Clemmons hospital is likely to intensify the heated competition between the two rival systems that began in September 2007.
On Sept. 18, 2008, executives from Forsyth and Baptist medical centers hurled harsh, even personal, accusations about their rival's public-relations campaigns during the latest CON public hearing.
Novant for months has expressed its support of a two-hospital solution, while Baptist has been reluctant -- with its conditional approval in hand -- to consider two hospitals serving the communities.
Lambeth said he was disappointed that the state conditionally approved both hospitals, particularly considering one of the stated goals of the state's CON law is to reduce duplication of services and unnecessary health-care spending.
Analysts had said that it is unlikely that the state would approve both hospitals.
"We see no public need for five hospitals in Forsyth County," Lambeth said. The others are Forsyth and Baptist medical centers, Medical Park Hospital and the Kernersville Medical Center, under construction.
In a similar case, Novant gained state approval for a hospital in Mint Hill, in Mecklenburg County, in part because it filed its CON application first. Carolinas HealthCare System's later application for a hospital just one exit farther down the interstate was denied.
Analysts said that the state's decision could represent an opportunity for Baptist and Novant to collaborate on one hospital for the area rather than risk two being built and one becoming underused.
Liner said that even though she is open to collaborating with Baptist, she is confident that a Clemmons hospital would be fully used over time.
"The criteria, as reviewed by the state, shows it considers that the communities can support two community hospitals," she said.
Many supporters of a Clemmons hospital encouraged Frisone to approve both hospitals because they believe that competition would help lower health-care costs.
"This hospital," Liner said, "will allow us to improve access to inpatient and emergency care for the more than 71 percent of the residents in Clemmons, Lewisville and Advance who now choose Forsyth Medical Center and our affiliated facilities for their hospital care, as well as for all residents in western Forsyth and Davie counties."
Lambeth said that Baptist is disappointed that the state did not approve adding obstetrics to its proposed Davie hospital. One of the top selling points to the Davie community for a replacement hospital has been gaining the option of women giving birth in the county.
Dudley Watts, the Forsyth County manager, called the conditional approval of the Clemmons hospital good news .
"The board supports both hospitals," Watts said. "But much as Davie County did with the Baptist proposal, the commissioners had publicly stated support for the Forsyth hospital because it was located in the county.
"But it also said in that resolution that in no way did it mean that it did not support Baptist," he said.
Liner said that Forsyth would proceed with pursuing rezoning of the proposed hospital site with the village of Clemmons.
John Bost, the mayor of Clemmons, said he celebrates the conditional approval of the Clemmons hospital.
"But we will remain judicious as we consider Forsyth's plans regarding the zoning," Bost said.
An interesting side note to the hospital battle is that the Novant proposal for a Clemmons hospital has Don Martin, the superintendent of Winston-Salem/Forsyth County Schools, and Lambeth, the school-board chairman, on opposite sides.
Martin is negotiating with Novant for 30 acres of its 100-acre site off Harper Road for a new elementary school.
■ Richard Craver can be reached at 727-7376 or at rcraver@wsjournal.com.
Comparing hospitals
The state's conditional approval yesterday of Novant Health Inc.'s proposed community hospital in Clemmons means that two small hospitals -- one proposed by Novant and the other by Wake Forest University Baptist Medical Center -- could open within four miles of each other:
Davie County Hospital | Clemmons Medical Center
Owner - N.C. Baptist/Wake Forest | Novant Health/Forsyth Med. Center
State approval* - Aug. 28 | Dec. 23
Beds - 48 | 46
Emergency rooms - 16 | 12
Operating rooms - 2 | 4
Obstetrics - - No | No
* Approval is preliminary and subject to final OK by state.
Source: N.C. Division of Health
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