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Hospital Awards Cancer Center Bid

Posted on: Thursday, 6 October 2005, 00:00 CDT

By Gene Powell Jr., Odessa American, Texas

Oct. 5--In a vote at least one opponent called predictable, hospital trustees decided to spend $5.3 million and build a cancer center on the Medical Center Hospital campus.

The Ector County Hospital District board voted 4-2 to award a bid of $3,949,123 to N.C. Sturgeon Construction of Midland. The remaining $1.4 million covers architect and engineering fees and other items not included in the construction bid.

The vote capped a five-year process of planning the cancer center. The plan was developed with Texas Oncology, the operator of the West Texas Cancer Center at Sixth Street and Grant Avenue and a division of U.S. Oncology.

And if the vote was predictable, that didn't keep three opponents from speaking out against the construction.

John Bushman, Meredith Loveman and Gene Collins all took different tacks in urging the board to vote against awarding a bid Tuesday night.

Collins, a community activist who often champions the causes of the poor and minorities in Odessa, took the board to task for two things.

First, he chastised the board for making decisions without taking a vote. He said he preferred governments have bond issue elections when building facilities instead of using discretionary funding to build things.

Second, he told the board that there are better ways to use the $4.5 million in tobacco settlement money the board is using to build the cancer center. He clicked off things like prescription medicine, improved health care and education on the dangers of tobacco as ways to serve the community better.

Collins also told the board that there are shortfalls in health care for low-income people and minorities in Odessa.

"Quite frankly, I'm here to tell you these concerns are not being addressed," Collins said, adding that he wanted the board to reconsider using the tobacco settlement money to help the less fortunate.

Meredith Loveman echoed Collins to some extent.

"We have issues that are not being addressed in this community," Loveman said.

Loveman told the board she wasn't necessarily against a cancer center, but that other "critical health care needs" in Odessa should take a higher priority.

On her list of needs for the community are a community dental clinic, education to fight obesity and a prescription drug plan for those who don't qualify for other assistance.

The first to speak was Bushman. Bushman, owner of ICA Realty, has been a vocal critic of the cancer center proposal for many months. Texas Oncology currently rents from ICA.

Bushman outlined what he called a "four-way win." By lowering his rent from $40,000 to $30,000 a month and giving $10,000 of that to MCH, Bushman said everyone would be a winner.

In Bushman's compromise, taxpayers would win by saving the expense of building a facility, ICA would win by retaining a tenant, MCH would win by getting $120,000 a year in rent and Texas Oncology would win by saving $10,000 a month in rent.

"We think anytime you can get a return on dollars you haven't spent, it's a pretty good deal," Bushman said.

Still, the board turned down the offer.

After Bushman, Collins and Loveman spoke, Bonnie Blount, a relative of a cancer patient, spoke out in favor of the facility before Frank Scarmardo addressed the board.

Scarmardo is the practice director of the West Texas Cancer Center for Texas Oncology. Since his company is a party to the lease agreement for the new facility, it's not surprising that he urged the board to build the facility.

He said the current location is too small to handle the expected growth of cancer patients in the Permian Basin and that the new facility will be a much-needed advance in technology. He also reminded the board that Texas Oncology does serve indigent patients as well.

After hearing from Scarmardo, MCH CEO William Webster reminded the board of the advantages of having an on-campus cancer center. Among those are improved patient care, a built-in return on investment, the ability to handle a great patient caseload and the ability to reduce outmigration for patient care.

Before the vote, each of the board members present commented on the process and on the cancer center.

"I believe due diligence has been done by the majority of board members," board member Judy Hayes said, noting the five-year process.

Board members Joe Buice and Mary Thompson also spoke out about how the cancer center is the right call for the hospital district.

Fred Martin and Abraham Torres, the two who voted against the measure, both cited their concerns of spending money on a facility when health care concerns are still outstanding.

The groundbreaking for the project is expected sometime later this month. It will take about 11 months to build the facility, with a completion date set for September 2006.

Of the total project cost not going to N.C. Sturgeon, the remaining $1.4 million in expected expenditures covers architect and engineering fees ($770,548), a nurse call and fire alarm ($157,454), data infrastructure ($34,062) and a canopy for the drop-off location ($100,000). There is also $300,000 earmarked for contingency and $24,731 for things like signage and parking.

In a related vote, the board unanimously approved a new lease agreement with U.S. Oncology for the cancer center. U.S. Oncology will pay $38,934.20 a month -- or $467,210.37 annually -- in rent for the next 15 years. That reflects a little more than $7 million in income over the 15 years.

In other matters, the hospital board:

--Voted to spend $80,000 to hire a consultant to study the feasibility of developing a hospitalist program at MCH. The program would put a doctor at MCH for patients when their regular doctor isn't available.

--Voted to spend $155,000 to buy Lots 1-4, Block 1 of Scharbauer Place. The land is on Second Street at Alleghaney Avenue and is the former site of the Bruce Motel and is adjacent to the former home of Broncho Chevrolet.

--Voted to buy a GE Surgical C-Arm for outpatient services ($140,598), an uninterruptible power supply for computer room ($38,000) and laparoscopic towers with cameras and lights ($117,800).

--Recognized Barbara Anderson and Kim McDaniel as the employees of the month.

--Heard reports from Texas Tech and Chief of Staff Daniel O'Hearn.

--Approved plan rates for the district's retirement program.

--Approved the hiring of a company for actuarial services for the post retirement medical plan and for the self-insured professional liability, general liability and workers compensation.

--Agreed to spend $65,000 to hire an outside agency to help with a HIPAA Security Assessment Audit.

--Heard the August 2005 financial statement. The hospital had a profit of $1,772,963 in August. For the 11 months ending Aug. 31, the hospital has had a profit of $9,242,720.

--OK'd creation of a credit card account to use for airline tickets.

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To see more of the Odessa American, or to subscribe to the newspaper, go to http://www.oaoa.com.

Copyright (c) 2005, Odessa American, Texas

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Source: Odessa American

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