Two rival health systems are raising concerns about an expansion plan by Regions Hospital in St. Paul that would add 100 beds over the next 30 years.
In a letter this month to state regulators, Minneapolis-based Fairview Health Services said the expansion could jeopardize the financial viability of other hospitals in the east metro including St. Joseph's Hospital, which Fairview operates roughly 1 mile away from Regions.
Minneapolis-based Allina Health, which operates nearby United Hospital, questioned whether the long-term nature of Regions' request makes sense considering the rapid pace of change in health care.
But Megan Remark, president and CEO at Regions, defended her hospital's proposal, saying in an interview that Regions is simply seeking the flexibility that St. Joseph's and United already have to expand services as the population gets older.
"The feedback from a few of our competing health systems doesn't change our interest in continuing to pursue the 100 beds," Remark said. "The feedback that we're receiving overall is very positive."
The comments from Fairview and Allina were submitted in writing this month to the Minnesota Department of Health, which is conducting a review of the Regions proposal to determine whether it's in the public interest. Minnesota has a moratorium on the construction of new beds unless an exception is granted by the Legislature.
Bills that would allow the Regions expansion have been approved by health care committees in both the House and Senate and are awaiting votes by the full chambers.
While the vast majority of public comments filed thus far have been supportive of the proposal, the first outright opposition came last month from sisters with the religious order that created St. Joseph's Hospital. Neither Fairview nor Allina signaled outright opposition in their letters, but they described concerns with the proposal from Regions, which is part of the Bloomington-based HealthPartners system of health insurance, hospitals and clinics.
