Medical organizations raise concerns over surgery center

Directors of the boards of two major medical organizations raised "grave concern" Friday about the financial impact of a proposed new surgery and imaging center.

The boards of Northwest Healthcare and the Northwest Healthcare Foundation met jointly after Flathead Valley Orthopedic Center announced plans to add an outpatient surgery and imaging center to its Kalispell building.

Northwest Healthcare is the parent company of Kalispell Regional Medical Center.

The orthopedic surgery center would be two blocks from existing surgery facilities.

Following the meeting, board members issued a press release expressing alarm about the impact on local health-care costs resulting from duplicate facilities.

Dr. Tim Obermiller, chief of staff at Kalispell Regional Medical Center, pointed out that the medical center and HealthCenter Northwest now provide MRI and orthopedic surgical services.

"They help pay for Kalispell Regional Medical Center's charitable mission," Obermiller said.

Obermiller referred to the millions of dollars in unpaid medical care written off annually by the medical center. As a large revenue producer, orthopedic surgery helps underwrite those costs.

According to hospital spokesman Jim Oliverson, Kalispell Regional writes off an average of $750,000 every month in bad debt and charitable care.

Along with covering charitable care, medical facilities must also figure the cost of upgrading technology in the prices charged to patients.

Jack King, chairman of the Northwest Healthcare Foundation, said the valley doesn't have unlimited resources to keep pace with technology demands.

"Just as the community benefits greatly from the cooperative structure of medical services in place by lowering health care costs, any fragmentation will be harmful to all of us," King said.

According to the press release, physicians from Flathead Valley Orthopedic Center have agreed to meet with medical center representatives Thursday to discuss these concerns.

Velinda Stevens, president and chief executive officer of Kalispell Regional, called Thursday an important day for health care in the Flathead Valley.

"The parties involved in these discussions are committed to finding solutions acceptable to the orthopedic surgeons," Stevens said.

She said Flathead Valley Orthopedic Center's proposed outpatient surgery and MRI center would "inevitably" impact the solvency and charitable mission the Kalispell Regional Medical Center.

Board members also voiced a commitment to address the needs of the orthopedic surgeons and their practice.

"It is imperative that we discuss and remedy issues that prevent Flathead Valley Orthopedic Center's participation in HealthCenter Northwest," said Rem Kohrt, Northwest Healthcare's board chairman.

HealthCenter Northwest opened a year ago as a joint venture of physicians and Northwest Healthcare.

Health-care officials saw the center as a move to avoid duplication of services. Physicians participate in management as a strategy to improve efficiency and cut costs.

"It is a vision for the rest of the country," Obermiller said.

He called it essential that the medical community continue to work together to control medical costs.

Physicians representing Flathead Valley Orthopedic Center acknowledged some negative impact on other valley medical facilities with outpatient surgery and imaging centers.

"Things are busy enough that it's not going to have an overly negative impact on any single facility," Dr. Don Ericksen, an orthopedic surgeon, said.

He said consumers would benefit from the group's planned expansion. Ericksen called specialized outpatient surgery centers the most efficient method of serving patients.

A press release from the group called the new facility a cost-effective alternative to hospital-based centers in the valley by performing outpatient surgeries only.

The center plans to build a 7,600 square foot addition to include an outpatient surgery center with an MRI suite at a cost of about $2 million not including equipment.

Dr. Larry Iwersen, president of the orthopedic surgery group, said the addition follows a nationwide trend of incorporating surgery and diagnostic suites on orthopedic clinic campuses.

Iwersen and Ericksen said they needed on-site facilities to attract top orthopedic talent to the valley to join their practice.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com.