N. Valley Hospital's limbo lingers

North Valley Hospital's bureaucratic dilemma led to a deluge of letters to Washington, D.C., this week, but no resolution appeared as of Friday.

Barrett Kaiser, spokesman for Sen. Max Baucus, D-Mont., said a ruling expected Friday on the hospital's critical access status never arrived. He said the Centers for Medicare/Medicaid Services won't rule until at least next week.

As a result, North Valley Hospital's new building lingers in limbo with its $26 million loan guarantee held up just as Swank Enterprises prepares to break ground for the project.

"Max is committed to getting this designation," Kaiser said. "He understands how important this hospital is to the community."

Kaiser said Baucus' office received an overwhelming show of support for North Valley remaining a critical access hospital at the future location near the intersection of Montana 40 and U.S. 93 north.

"He's very pleased to see the community rally around the hospital," Kaiser said.

And Rep. Denny Rehberg's office has received more than 1,000 letters supporting the hospital.

Kaiser said Baucus would use the letters to make the case with Medicare/Medicaid officials that North Valley remains a necessary provider even though its new location is a mile closer to Kalispell Regional Medical Center.

Both the medical center and the state Department of Public Health and Human Services provided letters to help North Valley hang on to the certification it received under a state waiver program in 2003.

North Valley's designation as a critical provider of rural medical services brings it more than $1 million a year in additional Medicare/Medicaid reimbursements.

Kaiser said Baucus has done everything he could to speed up the ruling from the Washington, D.C., Medicare/Medicaid office.

"He understands folks are frustrated," he said.

Kaiser said he remains hopeful a decision will come next week.

Medicare officials in Denver first promised North Valley Hospital a written assurance in January that its designation would continue. But nothing was ever received.

Agency officials also told Baucus earlier that the move would not affect North Valley's critical access status.

But just two weeks ago, hospital officials learned of a possible problem from the Department of Housing and Urban Development, the agency processing its replacement hospital loan guarantee. Now HUD wants written assurance the higher Medicare/Medicaid payments will continue at the new location.

Along with Baucus, Rehberg and Sen. Conrad Burns have begun working to loosen the bureaucratic logjam. Both have received bags of letters since the hospital problem was made public.

"The letters just keep coming," Brad Keena, Rehberg's press secretary, said Friday.

Keena said Rehberg was waiting until Monday to have as many letters as possible as leverage to convince both the Centers for Medicare/Medicaid and HUD to resolve the issue in North Valley's favor.

He said letters arrived at the rate of 50 to 100 a day.

"They're doing a great job," Keena said. "We hope they will continue to send them."

Denise Smith, Burns' field representative, said the senator had begun working on behalf of North Valley Hospital. Burns' office has also receive hundreds of letters.

Craig Aasved, administrator at North Valley Hospital, called the community response terrific.

"We're very grateful," he said.

He said the hospital will still move forward with about $1 million in site work for the new hospital.

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