ROANOKE TIMES
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, October 5, 1995                   TAG: 9510050069
SECTION: VIRGINIA                    PAGE: A-1   EDITION: METRO 
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE:                                 LENGTH: Medium


RADFORD COMMUNITY PLAN WINS APPROVAL

Competitors say Radford Community Hospital's plan for a replacement facility in Montgomery County is a ploy to dominate the New River Valley hospital market, but the plan still won solid approval Wednesday night from the Southwest Virginia Health Systems Agency Inc. board.

In a 16-to-3 vote, the board endorsed a proposal from Radford Community and its parent, Carilion Health System of Roanoke, for a $61.7 million, 97-bed hospital and medical complex to be built near an Interstate 81 exit four miles from its present site. It would replace the current 175-bed hospital in Radford.

The vote was 18-to-0 to deny the competing proposal from Montgomery Regional and Pulaski Community hospitals for a $26 million, 50-bed hospital to be built in Radford.

Montgomery and Pulaski hospitals are owned by Columbia/HCA Healthcare of Nashville, Tenn., the country's largest hospital system and Carilion's chief competitor in Southwest Virginia.

Hunsdon Cary III, a board member who is president of Westminster Canterbury of Lynchburg retirement home, barely contained his irritation at the Montgomery-Pulaski proposal when he called for its denial. Cary even suggested that the proposal should be tossed out altogether because it contained inaccurate information about the zoning of the proposed site.

The Montgomery and Pulaski hospitals are opposing Radford's plan just to draw out the decision as long as possible, Cary said during a break after the vote.

Opposing competitors' plans for new facilities is a strategy used by Columbia/HCA when it is attempting to gain market share. But Pulaski President Chris Dux raised a similar charge about the Radford Community effort.

Dux accused Radford Community of wanting to build excessive capacity just to have a fancy facility "with more marketing amentities."

"Is it possible that Radford is trying to run the competition out of town? Why else move closer to an existing hospital?'' Dux asked.

The new Radford Community facility would be closer to Christiansburg, the fastest growing area in New River, and positioned to draw business away from Montgomery Regional.

Dux and Montgomery President Gene Wright said the vote in favor of Carilion was no surprise. Wright also said that the inaccurate information on the zoning in the Montgomery-Pulaski proposal was an oversight and was based on information from the landowner and the city of Radford.

The health systems agency is a nonprofit corporation that reviews proposals for new medical facilities. Its board includes representatives of the health care industry and others.

There was little discussion among board members before the vote was taken at Wednesday's meeting in Roanoke.

Dr. Robert Stockburger, chief of staff at Montgomery and a member of the health agency board, suggested that both proposals be denied. He did not vote because of his affiliation with the hospital.

James Bohland of Blacksburg, who is a consumer representative on the board, cautioned that approval of either proposal could change the competitive balance in the area.

The health agency's recommendations now go to the Virginia Department of Health for review. Then they go to the state Health Commissioner, whose decision is due by Dec. 8.

Even then, the commissioner's decision can be appealed - and likely will be if it continues to be in favor of Radford Community, Montgomery and Pulaski hospital officials have indicated.



 by CNB