Hospital fights surgical center
Published 12:00 am Friday, May 31, 2002
Nearly two weeks ago, Kim Ballard announced he wants to spearhead the construction of a surgical center in Selma. Officials at Vaughan Regional Medical Center call the move “predatory,” and have vowed to fight Ballard and his idea.
In a statement released to The Times-Journal on Thursday, Vaughan CEO Gene Wright said his hospital would “take whatever steps are necessary” to prevent state approval of the surgical center.
“I somewhat expected this,” said Ballard, who serves as administrator at Hill Hospital in York. He is also a member of the Dallas County Commission. “By doing this, [Vaughan is] going to make us both spend a lot of money. But I’ll win in the long term.”
At issue is a $2.7 million outpatient surgical center Ballard wants to open off Medical Center Parkway. The center would have two surgery rooms and would employ up to 10 people once constructed. Expansion of the facility could follow, Ballard said.
On the other hand, Vaughan also has planned to build an outpatient surgical center as part of a $16 million expansion. Vaughan, owned by Province Healthcare in Brentwood, Tenn., announced those expansion plans earlier this year.
“What’s going to happen is the diminishing of local medical resources again,” said Johnny Morris, chairman of Vaughan’s local board of directors. “I thought we just got through combining our services. So why would we even think of something like this right now?”
Ameris Health, owner of the York hospital for which Ballard works, has agreed to finance the new surgical center. Ballard also said he has lined up a group of local investors to help with financing.
Both Ameris and Vaughan are in the midst of state “Certificate of Need” applications regarding their surgery centers. A CoN is required for any company to build a healthcare facility in Alabama. In essence, CoNs are granted when a governing board in Montgomery deems a certain service is “necessary” in a community.
However, CoNs are not always granted and can always be challenged. Wright said Vaughan will do everything it can to stop Ballard’s CoN application. Ballard, likewise, said he will do the same to Vaughan.
“If they oppose this, then I’ll tie their whole $16 million expansion up for six years,” Ballard said. “I have nothing to lose. I already have legal money set aside for it.”
Wright said Ballard’s reaction proves the former Selma hospital administrator is merely seeking revenge.
“I believe he wants to see the hospital and Province fail because they fired him,” Wright said. “This is out of revenge in my opinion. I haven’t figured out any other reason for it.”
Almost one year ago, Province purchased both Baptist Hospital and Vaughan Regional Medical Center. Ballard was an administrator with Baptist at the time, and once the hospitals combined, Province chose to replace Ballard’s position.
“[Province] had to know that in any market the size of Selma, there would be a surgical center built,” Ballard said. “Their arguments don’t make any sense.”
Wright said they make perfect sense.
“Province made a commitment to Selma with its investment,” he said. “One of those commitments was to expand the hospital. That expansion includes an outpatient surgical center.
“It also includes a renovated ICU and an increase in emergency services,” Wright continued. “Commissioner Ballard should know, from working in this facility, that those things are needed. But if that’s what he wants as a county commissioner for Dallas County, then I don’t understand it.”
In response to Vaughan’s announcement, Ballard said he would like the opportunity to sit down with Province officials to work out an agreement.
“All I’m saying is let’s sit down and talk about it. I’m open to anything,” Ballard said. “I think they could offer a complimentary service to what I do. Maybe they could partner with me.”
Wright said he has seen no proposal from Ballard.
“We’re willing to entertain any proposal he wants to offer,” Wright said. “I will say that we have no interest in buying a CoN from him or Ameris for something that does not even exist.”
Vaughan said they will file a formal complaint with the State Health Planning and Development Agency on or before June 10 — the deadline for making a claim against Ballard’s surgical center.
If he responds likewise, Ballard would have until June 27 to file a claim against Vaughan.