Decision on hospital certificate delayed two weeks

Pahrump residents eagerly awaiting the news about which company is awarded the Certificate of Need to build a Pahrump hospital will have to wait a little longer.

State Health Resource Analyst Mark Hemings said the decision has been put off two weeks until June 8, from the expected announcement date last Friday.

"It's the first time in more than 10 years we've had a competing review, so we had to get it right. Also we have to be very careful in case there's any sort of dispute once a decision is made," Hemings said.

Both Banner Health Systems, based in Fargo, N.D., and Johnson Controls Inc., of Milwaukee, have submitted applications for the CON. Nevada Administrative Code allows either party to appeal for reconsideration of the CON decision within 30 days, Hemings said. The appeal must include material that hadn't been considered or a significant change in the information used by the administrator, Nevada Human Resources Director Charlotte Crawford, in making the decision.

Both competing companies said they were contacted by phone by the Nevada attorney general's office.

"The reason for the delay is the Legislature being in session right now and everybody's busy up there. We can see the reasoning behind it. It's unfortunate, we feel 60 days was plenty enough time to review both packages and make a recommendation prior to this week. If the packages were really similar in comparison we could see why it would take longer, but they're totally different," said Bob Chance, account executive with Johnson Controls Inc. "It's unfortunate and again it's delaying us two weeks I feel really isn't justified because they're busy. We paid $9,500 as well as Banner did toward the application fee, which was to cover the labor hours to get this thing reviewed."

Chance said his company is preparing to break ground if it receives the CON. If Johnson Controls gets the go-ahead, it will do the site surveying; the architect will get into gear and the financial staff will get the bonds in place for the project.

Johnson Controls has preliminary plans that will have to be finalized, Chance said.

"We feel good about our involvement out there and we feel we're going to win," Chance said.

The Pahrump hospital district had a rough time operating the Pahrump Medical Center, it would help them save face if the state awarded the CON to his company, he said. The hospital district endorsed the Johnson Controls proposal.

Todd Steinke, director of strategy for Banner Health Systems, took the delay in stride.

"Obviously we're all very anxious for the decision. We definitely think our decision is strong and we're looking forward to hearing it. From what I understand they had a very busy legislative session," Steinke said. "In the end I think it's a good thing. She'll be able to do a thorough review and come back with a decision."

"Certainly should we be granted the CON we will move into the next phase of the project, which will be to pull together our clinical plans, look at the plans we prepared as part of the CON package and pull together some of the specifics of the design," Steinke said.

Hemings admitted Crawford was busy with the Nevada Legislature, which is busy trying to wrap up business before the end of the 120-day session on Monday.

"The director is very busy with the Legislature, so that had an impact on the time she had available to devote to the review. She's at the beck and call of (the Legislature) being a department head," Hemings said. "The extension is at the director's discretion. She has the authority to make that decision, she does not have to get their concurrence."

Hemings said he didn't give his findings of fact to the director until May 21, five working days before the first deadline. He anticipates Crawford's decision will be made close to the June 8 deadline.