CHS certificate for town hospital approved by state

The state last week approved Capital Health System’s certificate of need application, clearing the way to build a hospital in Lawrence.

By: Lea Kahn
   State Commissioner of Health Fred M. Jacobs last week approved Capital Health System’s certificate of need application, clearing the way for the Trenton-based hospital system to seek township permission to build a 320-bed hospital on Princess Road.
   Mr. Jacobs outlined the reasons for his approval in a seven-page letter to CHS President and Chief Executive Officer Al Maghazehe, dated Nov. 30.
   The certificate of need approval is limited to the relocation of the Mercer Campus from Bellevue Avenue in Trenton to Princess Road in Lawrence, Mr. Jacobs wrote. The proposed hospital is projected to cost $291 million.
   The state Health Planning Board endorsed the CHS application for a certificate of need following a public hearing Aug. 3. The endorsement was forwarded to Mr. Jacobs, who has the final say-so.
   Mayor Michael Powers said he was not surprised to learn that Mr. Jacobs granted the certificate of need, given that the state Health Planning Board approved CHS’ application.
   "The ball is in Capital Health System’s court," Mayor Powers said. "The certificate of need is granted only to Princess Road, but (the land) is not zoned for a hospital."
   Mayor Powers said township officials "carefully plan" for the future of the township, and an intense use such as the proposed hospital does not fit into those plans.
   Meanwhile, Dennis Dooley, CHS vice president for planning and development, said hospital officials are "delighted and relieved" to receive state approval, and they are anxious to move forward with developing the project.
   "We are looking forward to speaking to (Municipal Manager) Richard Krawczun and who he determines it would be appropriate to talk to about Princess Road," Mr. Dooley said.
   If the Princess Road site proves to be problematic, CHS would look for another site in Lawrence that would meet the approval of township officials, he said.
   CHS officials have had some discussion with Hopewell Township officials about locating a hospital off Scotch Road, but the Princess Road property is the preferred site, Mr. Dooley said.
   As a condition of approval, Mr. Jacobs wrote in the Nov. 30 letter that CHS will be required to open a satellite emergency department at the Mercer Campus hospital that will be staffed around the clock. It shall remain in operation for at least three years.
   CHS also must implement a transportation service for Trenton residents who want to use the Lawrence hospital, he wrote. The hospital systems must prepare a communications plan, detailing how it will let residents in Trenton and surrounding communities know of the date when the new hospital begins serving patients.
   "My decision to allow the relocation of CHS at Mercer Campus to a suburban location was not without considering the impact on suburban hospitals in Mercer County," Mr. Jacobs wrote. "I acknowledge that the relocation of CHS at Mercer will slow the market share growth of the two existing suburban hospitals, but I do not believe that the relocation would cause significant harm to either of the affected hospitals."
   Officials from the University Medical Center at Princeton and Robert Wood Johnson University Hospital in Hamilton Township have objected extensively to CHS’ proposed relocation plan.
   Mr. Jacobs also made it clear that his approval of the certificate of need should not be misconstrued as a blanket approval for the hospital to be built on Princess Road. Lawrence officials have expressed concern about the traffic impact of an around-the-clock hospital, as well as the size of the proposed hospital.
   "This approval is not intended to pre-empt in any way any municipality’s authority to regulate land use within its borders and shall not be used by you (CHS) to represent that the Department of Health and Senior Services has made any findings or determination relative to the use of any specific property," Dr. Jacobs wrote.
   Township officials have noted the zoning would have to be changed to permit the hospital. The Princess Road site is zoned Industrial-1, which allows offices, industrial uses, research and engineering offices and laboratories — but not hospitals. CHS would have to seek a use variance from the Zoning Board of Adjustment, unless township officials change the zoning designation.