Virginia health board backs VCU Health, Bon Secours projects in Chesterfield

A panel of Virginia Department of Health staffers recommended approval of VCU Health’s proposed 66-bed hospital in Chesterfield County while recommending denial of a 60-bed facility proposed by HCA Healthcare.

In a third recommendation, the state health department group recommended approval of Bon Secours’ expansion of St. Francis Medical Center, also in Chesterfield County.

The county south of Richmond is growing swiftly, with its population expected to grow by 42,000 between 2020 and 2030, according to the Virginia Department of Health. The state’s Certificate of Public Need policy requires health systems to receive approval from the state before building or expanding hospitals. The VDH analysis is non-binding, but Dr. Karen Shelton, Virginia’s health commissioner, will take the group’s recommendations into consideration before delivering a final verdict on the three projects.

Currently, Chesterfield County has two hospitals: Johnston-Willis Hospital, owned by HCA, and St. Francis Medical Center.

VCU Health

VCU Health’s proposal would include 42 general medical and surgical beds, six pediatric beds, six obstetric beds and 12 intensive care unit beds at a new hospital at 7220 Beach Road. The 202,889-square-foot hospital would also feature six operating rooms, one cardiac catheterization lab, one CT unit, one MRI unit and intermediate level nursery services.

The facility is projected to cost $306 million. VCU Health expects to fund half of that with a bond sale and half with reserves. The new hospital could open by 2030, according to the state’s analysis.

On the same site, VCU Health is building the four-story Chesterfield Pavilion, which will offer an ambulatory surgery center and a medical office building. A groundbreaking was held at that facility in May.

Bon Secours opposed VCU Health’s proposed facility for reasons that included concern that it would impact business at St Francis Medical Center. In a letter of opposition about the proposal to the Virginia Department of Health, Johnston-Willis Hospital stated the proposed site is less than one mile from a freestanding emergency room, which HCA has under construction.

The recommendation by the Department of Health staff is contingent on VCU Health agreeing to a charity care condition, providing health care for free or at a discounted rate to low-income people who qualify for financial aid.

A spokesperson for VCU Health said in a statement that the health system is pleased with the conditional approval, noting that it “recognizes the merits of our application and the positive impact that VCU Health System provides throughout the commonwealth.”

Bon Secours

Bon Secours was denied approval to add 36 beds to St. Francis Medical Center in September, although Shelton OKed the addition of four ICU beds. However, Bon Secours resubmitted its Certificate of Public Need request, receiving the staff recommendation this time.

The current proposal would add two floors and renovate existing space, while adding 40 acute care beds. The projected cost is $106 million. The staff’s recommendation is contingent on Bon Secours’ agreement to a charity care condition.

VCU Health opposed this project stating that “nothing has materially changed”  since the project was denied in September.

“We are encouraged by this staff recommendation, yet we remain committed to securing full approval for the project,” a spokesperson for Bon Secours stated Tuesday. “We believe this comprehensive expansion is critical to meeting the growing and evolving health care needs of Chesterfield County and the surrounding region, which we have faithfully served for two decades.”

HCA

HCA Virginia proposed building a $260 million, 60-bed acute care hospital in Chesterfield County, citing the county’s growing population. Called Magnolia Hospital, the facility would be located in Moseley on Hull Street Road.

However, the VDH staff analysis recommends denying the proposal for several reasons, including that “it exacerbates a maldistribution of hospitals and beds by health system.”

Magnolia Hospital would feature 54 medical/surgical beds, six intensive care unit beds, four general-purpose operating rooms and one MRI scanner, all of which HCA would pay for, the health system said in its proposal. HCA also said it planned to relocate beds from Retreat Doctors’ Hospital and operating rooms from Retreat Doctors’ Hospital and Johnston-Willis Hospital. It also plans to close its Swift Creek freestanding emergency room if Magnolia Hospital is approved.

Bon Secours opposed the proposed facility for reasons that included concern that it would impact business at St. Francis Medical Center. VCU Health also opposed the project, noting its own “proposal creates more access” and “removes more barriers.”

Responding to the recommended denial, an HCA Healthcare Capital Division spokesperson said Tuesday that the health system is “looking forward to further demonstrating the need for this important project to serve the community’s growing population at the Nov. 7 fact-finding conference, where all parties will present on their proposed projects prior to the state health commissioner’s decision next year.”