Thursday, May 25, 2006

Jones Lang LaSalle


Cold shoulder to Capital Health move might give Princeton HealthCare System a chill
By: Hilary Parker , Staff Writer
ANALYSIS


As Lawrence mayor rolls up the welcome mat, what will Plainsboro's reaction be?
The recent outcry of Lawrence Township residents against Capital Health System's proposed move from Trenton to Lawrence — culminating in a letter sent Monday from Lawrence Township Mayor Michael Powers indicating he doesn't want the hospital anywhere in his township — might be a bit of a mixed blessing for Princeton HealthCare System.


On the one hand, PHCS President and CEO Barry Rabner spoke out strongly against Capital Health System's proposed move at the public certificate of need hearing last week — and the recent development further complicates issues for the struggling Capital Health System.
"The Capital CN application does not satisfy the basic requirement of the certificate of need regulations, in that it demonstrates no need for the number of beds it proposes in Lawrence," Mr. Rabner said at the May 10 hearing.


On the other hand, the situation in Lawrence might inspire the question of whether Plainsboro officials and residents in general could respond in a similar fashion to PHCS' planned construction of a new hospital campus on the 160-acre FMC Corp. property on Route 1 and Plainsboro Road.

It would seem reasonable that it might even be making some PHCS and Plainsboro officials anxious — but if it is, no one's willing to admit it.

"It has been the PHCS commitment in both Princeton and Plainsboro to participate in a very comprehensive and collaborative process regarding all of our decisions about relocation and redevelopment," said Pam Hersh, PHCS vice president for government and community affairs. "As far as the specifics of how Plainsboro is going to react to our relocation, we are not the ones to comment on that."

Plainsboro Mayor Peter Cantu also stressed that the hospital's move to Plainsboro is only in the earliest stages of what will be a very long process.

"We are at the beginning of a process," Mayor Cantu said Tuesday when asked about parallels that might be drawn between the reactions in Lawrence and Plainsboro to the proposed hospital moves. "I can't speak for Lawrence's process. Literally, we are yet to see a proposal with regard to their desires for the site."

Late last year, PHCS announced its plans to purchase the FMC property on Route 1 and Plainsboro Road and erect a $350-million facility — including a 269-bed hospital, medical offices and replacement facilities for the Merwick Rehab Hospital & Nursing Care facility — on one-third of the property.

At that time, Plainsboro Township Administrator Robert Sheehan said traffic control would be a major focus in the upcoming planning process. In response to questions last winter, Mayor Cantu said it was too early to know how the hospital's move would affect taxation in Plainsboro without more detailed plans from the hospital. While the hospital building itself would be tax-exempt, medical offices and other buildings — as well as undeveloped land — would provide the municipality with revenues from property taxes.

Regardless of the specifics and timing of PHCS' proposal, Mayor Cantu said any proposal will undergo thorough review by a team of experts. "We will look at all the issues, and if we don't have the expertise in house, we'll engage the experts," he said.

The mayor noted that the township is not involved in any way with the hospital's certificate of need application — submitted to the state Dec. 1. As the planning process continues, he said a complete review with the township will involve public hearings regarding any proposed development.

"There's a requirement for the approval of the town. If it's going to happen, it's going to happen through a full-blown review process," Mayor Cantu said.

Deputy Mayor Neil Lewis characterized all proceedings up to this point as "very open" and said that the hospital is currently involved with private property negotiations and state licensing issues. All proceedings have taken a normal course to date, he said, and a "very open and public process" will begin in Plainsboro after the hospital approaches the township with a formal proposal.

"I'm sure there will be people with opinions, and great interest in what's happening," Deputy Mayor Lewis said.

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