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David Archer

Saint Francis Hospital publicly applauded a replacement hospital for pediatric services at Methodist Le Bonheur Germantown, but wasn't happy with the certificate of need (CON) granted Methodist Le Bonheur for the transfer of 100 beds from three of its locations to the Germantown hospital.

Saint Francis had filed a complaint with the Tennessee Health Services and Development Agency (THSDA) against the transfer. But at a December hearing in Nashville, Methodist received the CON requested. Saint Francis has appealed.

In a statement given by Saint Francis senior vice president Marilyn Robinson on behalf of CEO David Archer, the CON doesn't meet acceptance criteria.

"CONs are supposed to be based on the orderly development of healthcare need and financial feasibility. Between Saint Francis Bartlett, Saint Francis Memphis, Baptist and Collierville there is capacity," Archer said. "Secondly, it will hurt a high TennCare provider, which is Saint Francis Hospital. As a percentage, we have a higher number of TennCare patients than the Methodist system does. We could lose insured patients. Therefore, it could increase our percentage of TennCare patients."

Gary Shorb, president and CEO of Methodist Le Bonheur Healthcare, said the $10 million CON granted to Saint Francis in September to renovate its emergency department proved necessary due to population growth in east Shelby County.

In a statement issued by Shorb, he said he was surprised Saint Francis appealed because forecasters show there will be enough patients to go around with increasing demand of the aging baby boomers.

"The unanimous vote by that body served as resounding validation that Methodist indeed demonstrated that we met the three criteria called for in the certificate of need process: need, economic feasibility and orderly development of adequate and effective healthcare," Shorb pointed out. "Saint Francis has now appealed the decision, but we remain optimistic that we will be able to move ahead with our plans for the community and take care of the urgent capacity needs for our patients."



February 2007

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