OLIVE BRANCH—Undaunted by the Mississippi Legislature's inaction on certificate of need legislation that would have allowed Methodist Le Bonheur Healthcare to build a 100-bed hospital in Olive Branch, leaders at the Memphis-based healthcare system are ready to try again.

 

After pulling its certificate of need (CON) application from the Mississippi State Department of Health for a shot at bypassing the labyrinth process and gaining a CON instead by legislative means, Methodist may re-submit its CON application to the state agency.

 

Methodist's resubmission would come on the heels of revisions to the state's CON process. If the State Health Board adopts proposed changes on July 8, rapidly growing medically underserved populations of more than 140,000, with at least 10 percent projected growth expected over the next decade, that do not have more than three beds per 1,000 for its general hospital area, will be considered for a new acute care hospital with up to 100 beds. 

 

"These changes are going to allow the medical community in DeSoto County to develop the way it needs to and improve healthcare for its citizens," said Luke Lampton, MD, who chairs the State Health Board and the task force assigned with revamping the CON process.

"We're very committed to this process of establishing the hospital in Olive Branch," said David Baytos, recently promoted to CEO of Mississippi for Methodist. He plans to attend the early July meeting. "We're very impressed with the people of Olive Branch and their desire to have a hospital in Olive Branch."
If the vote is favorable to the CON process changes, Methodist plans to file a CON application immediately, and hopes to have it approved before state lawmakers kick off the 2010 legislative session.

 

If the vote is not favorable to Methodist's agenda, the healthcare company would likely try again next year to introduce legislation bypassing the CON process.

 

Over the last few years, Methodist has invested heavily in DeSoto County by increasing its presence there via opening a new minor medical clinic, sleep center and pediatric urgent care center, and acquiring Carvel Imaging centers in Southaven and Olive Branch from the Carvel family.

 

A groundswell of local support for Methodist's proposed 100-bed acute care hospital has grown stronger as the roadways between Southaven and Olive Branch have become even more congested.

 

For the 2009 legislative session, Methodist lobbied state senators Merle Flowers and Tommy Woods to introduce legislation allowing the hospital to be built.

 

"If approved through regular channels, other hospitals have the opportunity to object and it could get held up in the lengthy appellate process," said Flowers.

 

Baptist-DeSoto administrators have firmly maintained their stance: "We don't believe the issue of healthcare and certificate of need should be covered through the political legislative process, where the outcome can become a popularity contest," said Greg Duckett, senior vice president and legal counsel for Baptist Healthcare.

 

Kenneth Williams, MD, an internist who owns Alliance HealthCare System Inc., and has an approved CON to build a $31 million, 40- or 48-bed hospital in nearby Holly Springs, has also opposed Methodist's plan.

 

"Part of our business plan is to attract new payors," Williams said. "If we get in the position where we can't attract them, then that changes the whole thing."

 

Methodist CEO Gary Shorb has indicated a willingness to work with Williams, who admittedly doesn't have "the deep pockets like Methodist or Baptist."

 

But even a special session called in early May to deal with legislatively bypassing the CON process failed after the House "didn't blink" and abruptly ended the session without considering the bill, said State Rep. Forrest Hamilton (R-Olive Branch), who blamed the bill's defeat on opponents ranging from Holly Springs medical leaders to the legislative black caucus.