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Two Firms Unite for Hospital Proposal

Posted on: Tuesday, 11 October 2005, 18:00 CDT

By Patrick Sweeney, Pioneer Press, St. Paul, Minn.

Oct. 11--Two of the three hospital groups competing for the right to open a new hospital in the fast-growing Maple Grove area announced Monday that they have formed a partnership to try to win legislative approval for their effort.

The joint venture calls for North Memorial Health Care and Fairview Health Services to share the cost of building a new hospital and share its revenue. North Memorial would operate the hospital, which would have at least 80 beds and would cost an estimated $80 million to $120 million. Chief executive officers of the two cooperating hospitals declined to make public a detailed agreement spelling out what each entity would contribute to the partnership.

If the partnership wins legislative approval, the new hospital will be built near Interstate 94 and the future Minnesota 610. That is the site proposed by North Memorial.

In a Capitol news conference, the two CEOs urged the Legislature to meet in special session to name the partnership as the winner in a heavily lobbied campaign for the right to build a hospital in the northwestern suburbs.

The other group still contending to serve Maple Grove is a consortium of Allina Hospitals and Clinics, Park Nicollet Health Services, and Children's Hospitals and Clinics.

Since 1984, Minnesota has limited hospital expansion and required legislative approval for new beds.

The Minnesota House this year chose North Memorial to build and operate the hospital. But the Senate voted to set selection criteria and let the state Health Department choose between the competing hospital groups. There was no compromise between the conflicting bills before lawmakers adjourned.

The two CEOs, David Cress of North Memorial and David Page of Fairview, said the partnership would meet all the Senate's criteria.

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To see more of the Pioneer Press, or to subscribe to the newspaper, go to http://www.twincities.com.

Copyright (c) 2005, Pioneer Press, St. Paul, Minn.

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.


Source: Saint Paul Pioneer Press (St. Paul, Minn.)

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