Surgery center plan has a snag

The Journal staff

Waukesha Waukesha Memorial Hospital and the regulatory Cost Containment Commission appear to be far apart on agreement over a new ambulatory surgery center in Waukesha.

But in little more than three months, it might not matter much.

If Gov. Tommy Thompson is successful and commission chairman Michael F. Corry says chances are good that he will be the commission will be abolished as of July 1.

Waukesha Memorial Hospital spokeswoman Ann Kavinsky said the hospital did not intend to drag its feet on the outpatient surgery center proposal. "We did start with a good faith effort with the commission and we will finish," she said.

But if the hospital and commission can't agree on what the hospital can build, the passing of the commission would remove the obstacle, she agreed.

The hospital has been working on a proposal to establish a $4.2 million outpatient surgery center in leased space at the Moreland Medical Center, on Delafield St. and Moreland Blvd. in Waukesha.

In December, the Cost Containment Commission indicated it would not approve the plan unless it was scaled back, citing a staff conclusion that there was a lack of need for the facility in Waukesha County.

"The commission told them we were not interested in an off- site center," Corry said. "They've got 13 or 14 perfectly good operating suites. It didn't seem appropriate to us to abandon those and build new ones." Three Options

But in a revised proposal, Waukesha Memorial Hospital submitted three options, the least expensive of which was still a clinic at the Moreland Medical Center.

The options are:

A $3.7 million center with 17,187 square feet of space 20% less than the original $4.2 million proposal at the Moreland Medical Center.

A $7.5 million addition on the west side of the hospital with 19,337 square feet of new space. Part of the higher cost for this proposal stems from the need to demolish a portion of Fairview Ave.; relocate some utilities; add vertically to a parking ramp to replace lost parking lot stalls; relocate the emergency room ambulance bay to eliminate congestion; enlarge American Ave. to a boulevard and cul-de-sac for patient drop-off and Fire Department trucks; and build a walkway connecting the ambulatory center to the hospital.

An $8.7 million project involving the remodeling of 12,811 square feet of space and new construction of 16,678 square feet to accommodate both an ambulatory surgery center and a 20-bed intermediate care unit that would be displaced by the outpatient center. The cost includes the acquisition of two lots.

In each of Waukesha Memorial's new options, the ambulatory surgery center will include three general use operating rooms, a minor procedure room and a urology room. The center will be offset by the closure of five rooms at the hospital.

Corry declined to comment on the options, saying hospital officials and commission staff would be negotiating on the proposal.

"It's too early to discuss," Corry said Monday.

Kavinsky said there had been no discussions to date. Defending Commission

Corry is scheduled to appear Wednesday before the Legislature's Joint Finance Committee on Thompson's proposal to abolish the commission. The commission was created in July 1993 to control health care costs and prevent duplication by reviewing hospital building projects that cost at least $1 million or equipment purchases exceeding $500,000.

The commission's annual budget totals $550,000, funded by fees from medical facilities, and it pays for seven employees, Corry said. Since its creation, the commission has approved $37 million in capital projects and is reviewing another $34 million worth, he said.

According to information from the Wisconsin Hospital Association, an industry group, the commission added $2.4 million in costs to hospitals in its first year, for application fees and staff time and expenses in preparing applications.

Corry said there was a "9 out of 10 chance" that the commission would be abolished by July 1, under the new state budget.

Asked whether he thought the commission had done its job well, Corry said: "Sure. They {the Legislature} built us a leaky dike halfway across the river. We've been effective in manning our dike." Town of Pewaukee Center

Of the $7.63 million in savings attributed to the commission, $3.87 million was a cost reduction in the ambulatory surgical center in the Town of Pewaukee sought by Aurora Medical Group.

Last month, the commission voted 2-1 to approve a scaled- down, $1.7 million outpatient surgery center at the site with a single outpatient surgery room and a CT scanner. Initially, Aurora had asked for three surgical suites, a full diagnostic center, a CT scanner, magnetic resonance imaging services and a cardiac catheterization program.

In making their decisions, commissioners cited the importance of competition as a factor in lowering health care costs.

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