Hillsborough branch of UNC Hospitals stalled

The construction of a new branch of UNC Hospitals in Hillsborough the state says is needed could fall through due to legal roadblocks.

The hospital still has to complete an appeal process started by a wary nearby medical center.

Sixty-eight beds would be relocated from UNC Hospitals to the location in Hillsborough, said town of Hillsborough planning director Margaret Hauth.

“They aren’t necessarily expanding capacity,” she said. “That will happen in the future. But the main reason now is they are trying to move beds around.”

The $228 million new facility is set to be built off Interstate 40 Exit 261 in the Waterstone development, across the street from Durham Technical Community College.

Construction for the 80-plus acre site is slated for completion in 2014.

But an appeal made by Alamance Regional Medical Center more than a month ago has brought the process to a standstill, said Ray Lafrenaye, vice president of facilities and plant development at UNC Hospitals.

Alamance’s primary concern is that moving these beds to the proposed community hospital in Hillsborough could limit the number of patients in need of aggressive treatment the Alamance medical center could send to UNC because the research hospital would have fewer beds available.

The state has approved UNC’s application for a Certificate of Need, which deems the construction of the hospital as a necessity.

Karen McCall, vice president of public affairs and marketing at UNC Hospitals, said the appeal stands in the way.

But Alamance officials said it could help resolve outstanding issues.

“When you apply for a C.O.N., other hospitals have the ability to appeal on the grounds that you are encroaching on their territory,” Hauth said.

Tracey Grayzer, director of public relations at Alamance Regional Medical Center, said the hospital is worried about a duplication of services, and said the appeal process could clear up any misunderstandings.

“The appeal forces everyone to sit down at the table and have full disclosure on the project,” she said.

Lafrenaye said the project is still in design stages.

“We have a $2 million threshold for planning fees, and until we get formal approval, we can’t go over that threshold,” he said.

Attorneys on both sides are currently in talks about when the appeal will be settled, he said.

The idea of building the new branch was first discussed last March, Hauth said.

She said she is expecting to receive building plans for the project this spring.

McCall said need for a satellite clinic seemed more practical in the recession than an expansion on-site.

“When things changed in the economy, people’s investments were lost, and our amount of capital changed,” she said. “Building the expansion off-site was the best option forward before we built another bed tower on campus.”

County planning director Craig Benedict said the project’s proximity to Durham Technical Community College could help the school’s medical program grow.

“We are excited about giving our students hands-on experience,” said Wanda Maggart, Durham Tech’s senior vice president for institutional advancement.

Businesses and medical facilities could springboard off the hospital’s construction, Benedict said.

“Having a new facility connected with UNC in the middle of the county is a great asset to the economic development opportunities in and around Hillsborough,” he said.

But those opportunities hang on the decision made after the appeal.

Contact the City Editor citydesk@unc.edu.