Hospital project on hold until hearing
By Steve Herring
Published in News on August 12, 2015 1:46 PM
A public hearing will be held Aug. 19 at 10 a.m. at the Wayne County Public Library on East Ash Street on Wayne Memorial Hospital's proposed $25 million construction project.
A certificate of need public hearing is required before the hospital can proceed with its surgical services expansion.
The project is a renovation and expansion of the hospital surgical space that will allow it to continue providing patient care with state-of-the-art technology, hospital officials said. Total cost will be $25 million.
During its Tuesday morning meeting the hospital board of directors awarded a $2 million construction manager contract to T. A. Loving Co. of Goldsboro.
But the project is not a done deal, hospital officials said.
The certificate of need must be approved by the state, and the board must approve the project's continuation.
Board member Ray McDonald Jr. asked why the hospital needed the certificate of need.
"Are we expanding?" he said.
He was told the reason the certificate of need is being required is because of the project's cost. The certificate of need was filed with the state in June.
State law prohibits health care providers from "acquiring, replacing, or adding to their facilities and equipment, except in specified circumstances, without the prior approval of the Department of Health and Human Services."
Prior approval is also required before certain medical services can begin.
The intent of the law is to restrict "unnecessary increases in health care costs and limits unnecessary health services and facilities based on geographic, demographic and economic considerations."
If the project is completed, it will be about a $2 million contract for T.A. Loving. However, there are several stop points along the way, meaning that should something occur that would keep the project from being completed, only a portion of the amount would be paid to T.A. Loving.
The value of the contract at the end of this first phase of pre-construction approved Tuesday, is approximately $160,000.
The overall project would include renovation of 50,000 square feet of existing hospital space and an addition of 40,000 square feet of space.
The existing space includes: Operating rooms, endoscopy, post anesthesia care unit, same-day surgery, registration, pre-admission testing, outpatient lab and staff support spaces.
The anticipated completion date is late 2017.
"Anybody is welcome to come," hospital President Bill Paugh said during the meeting, referring to the public hearing. "It is a state hearing, dictated by the state.
"Typically there is not a large turnout. We are allowed 15 minutes to state our case. That is 15 minutes for the organization. It is pretty much cut and dried."
The board unanimously approved a motion by Bill Broadaway, chairman of the hospital board's buildings and grounds committee, to award the construction management to T.A. Loving Co.
"They are local," he said. "I went to both (company's) presentations. It was very evident that T.A. Loving wanted this contract, and we have a wonderful history with T.A. Loving."
Danis was the other company to make a presentation for the project.