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DHS news release

Jan. 13, 2006


Contact: Bonnie Widerburg (971) 673-1282
Technical contact: Grant Higginson (971) 673-1225

DHS grants Certificate of Need for Sacred Heart Medical Center's Hilyard Street location


The Oregon Department of Human Services (DHS) today issued a proposed order to Sacred Heart Medical Center, granting a certificate of need for a 104 bed hospital at its current location, 1255 Hilyard St. in Eugene.

Sacred Heart proposes opening the new hospital as a separately licensed general hospital simultaneously with the relocation of its medical center to a new location, RiverBend, at 3345 Game Farm Road in Springfield.

The Hilyard Street facility will house Lane County's only dedicated inpatient psychiatric unit and Commission on Accreditation of Rehabilitation Facilities-accredited inpatient rehabilitation unit. It will also operate an emergency department and offer ambulatory surgery. The facility will be remodeled to provide for 104 beds, an emergency department and ancillary spaces. The buildings will be seismically upgraded to meet current licensure requirements for new hospitals. The capital expenditure for this project is estimated at almost $23.7 million.

The order issued today is a proposed order. Any affected party who takes exception to the proposed order may ask DHS to hold an informal hearing. If no request for a hearing is received by Jan. 23, 2006, the proposed order will automatically become final.

Under state certificate of need law, Sacred Heart Medical Center was required to seek state approval of this project because it involves the establishment of a new hospital. The purpose of Oregon's certificate of need program is to achieve reasonable access to quality health care at a reasonable cost.

Meanwhile, McKenzie-Willamette Medical Center, located at 1460 G St. in Springfield, has submitted an application to DHS for a new 148-bed general hospital that would be located on a portion of the current River Ridge Golf Course north of the Eugene city limits. DHS has until Jan. 18, 2006, to notify the hospital whether the application is complete. Once the state deems an application to be complete, formal review can begin and a proposed order will be issued within 90 days.