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DHS news release

Feb. 23, 2006

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

DHS issues final order granting Certificate of Need for Sacred Heart Medical Center's Hilyard Street location

The Oregon Department of Human Services (DHS) today issued a final 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.

A proposed order granting the certificate of need was issued on Jan. 13, 2006. McKenzie-Willamette Medical Center requested an informal hearing that was held in Eugene on Feb. 6, 2006. The record of the informal hearing was held open for written comments until Feb. 13, 2006. DHS administrative rules require that a final decision be rendered within 10 days of the close of the informal hearing.

Sacred Heart proposes opening the new hospital as a separately licensed general hospital while simultaneously moving 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 offer an emergency department.

The existing 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.

This decision is subject to a reconsideration hearing under provisions of Division 670 of OAR Chapter 333 if a petition for hearing is received within 60 days of the final decision.

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

Meanwhile, DHS has received an application from McKenzie-Willamette Medical Center, located at 1460 G St. in Springfield, for a new 148-bed general hospital to be located on a portion of the RiverRidge Golf Course on the northern edge of Eugene. DHS is evaluating that application for completeness. Once DHS deems an application to be complete, formal review begins and a proposed order will be issued within 90 days.