Harrison to build new hospital in Silverdale, move out of Bremerton facility

May 23--BREMERTON -- Harrison Medical Center plans to build a new hospital in Silverdale and move out of its flagship campus in Bremerton.

The plan, still being finalized by Harrison's board, will be carried out over the next four years. Construction of the roughly $240 million hospital would allow Harrison to merge its acute care campuses in Silverdale, cutting duplicated costs and offering a more central location for patients. Harrison's new affiliate, Franciscan Health System, will help finance the build out.

Harrison CEO Scott Bosch said Harrison will continue offering outpatient services in Bremerton, potentially including an urgent care clinic. Harrison officials hope other organizations can repurpose the 1965 East Bremerton hospital after the relocation.

The new strategic plan -- dubbed Vision 2020 -- was announced Friday morning. Bosch stressed Harrison is determined to maintain a presence in Bremerton.

"The board is not willing to abandon Bremerton," Bosch said. "We are not going to leave Bremerton. We're going to be here in a significant way."

Still, the announcement hit hard for many. Bremerton Mayor Patty Lent, who said she was briefed by Bosch about the move on Wednesday, called it "the saddest news" she'd had to confront in her time as mayor.

"Harrison has been such a cornerstone for the city," Lent said.

PRESSURE TO CHANGE

Bosch said the age of the Bremerton hospital and a need to lower expenses are driving plans to consolidate in Silverdale.

Despite multiple renovations, the Bremerton building is increasingly outdated, cramped and costly to maintain, Bosch said. The majority of rooms at Harrison house two beds, a largely obsolete design for new hospitals. Harrison officials say overhauling the building could cost $130 million.

Harrison is also under pressure to cut costs. Affordable Care Act mandates demand greater efficiency from hospitals. Inpatient admissions have dropped 25 percent since 2009. Outpatient revenue exceeded inpatient revenue in March for the first time in the hospital's history.

Increased competition and cuts to Medicaid also dealt a blows to revenue. Harrison's profit margins are razor thin.

"The trend line is heading to a place where we're not going to be able to exist," Bosch said. " ... We have to continue to cut costs and improve quality."

Operating two hospitals is inefficient, Bosch said. Emergency departments and many other services are duplicated on the Bremerton and Silverdale campuses. Combining services in Silverdale could save Harrison up to $15 million a year.

"What we really came to realize was we needed one hospital and one campus," Bosch said.

Harrison's situation is far from unique. Many hospitals are looking to cut costs as the rollout of health care reform continues, said Mary Kay Clunies Ross with the Washington State Hospital Association.

"Consolidating services is one way a lot of people are looking to achieve those goals," she said.

Randall Moeller, president of The Doctors Clinic, said Harrison's decision to combine hospitals appears to make the most sense for the hospital and the community.

"When you take a look at it from a medical standpoint and a financial standpoint, they really didn't have a choice," he said.

The consolidation will come with a reduction in staff, though positions could also be gained as new facilities are built. Bosch said he believes that reduction can be met through attrition over the next several years, and layoffs would not be required.

About 765 full-time and 511 part-time staff members work at the Bremerton hospital. Another 100 full-time and 245 part-time staffers work at the Silverdale campus.

Tom Geiger, spokesman for UCFW 21, a union representing several employee groups at Harrison, said it's too early to know what employees should expect.

"This kind of an announcement raises questions for workers," he said. "What does it mean? What does it mean for their patients? We'll have to wait and see."

OPPORTUNITY IN SILVERDALE

Central location. Easy access. Room to grow. There are many reasons the Silverdale campus makes sense as a focal point for Harrison's growing network of facilities, Bosch said.

The 32-acre property at Myhre Road and Ridgetop Boulevard is already home to a 24-hour emergency department, a natal care unit and a new orthopedic hospital, among other services. The center is close to the intersection of Highway 303 and Highway 3 and Harrison officials have floated the idea of adding an offramp from 303.

The new hospital would be built at the north end of the campus, on land Harrison already owns. It will include a new emergency department and helipad. All the rooms will be private, single-bed units.

"It will be a full-service, modern hospital," Bosch said.

At about 240 beds and, 400,000 square feet, the new hospital will be comparable in size to the Bremerton building, but more efficiently designed, Bosch said. A new medical office building and cancer center are being considered and the campus will still have space for future expansion.

POTENTIAL FOR BREMERTON

Less clear are Harrison's plans for Bremerton. The board is still investigating how the 250-bed hospital can be repurposed and what outpatient services should be offered.

Bosch said a task force will be convened help the Harrison board study what health care options the city needs. The relocation offers the chance to "wipe the slate clean" and create services tailored for the community, said Harrison board President Jim Civilla.

"This is not a negative for Bremerton," he said.

The vacant hospital could be an intriguing prospect for another organization in need of beds. Lent has already approached U.S. Rep. Derek Kilmer's and Sen. Patty Murray's offices about the prospect of putting a veterans hospital there.

County Commissioner Linda Streissguth said Harrison's plan could be a "catalyst" to expand medical services in both Silverdale and Bremerton.

MOVING AHEAD

The Harrison board has mulled consolidation several years. Harrison's affiliation with Franciscan last fall gave it access to the capital needed for the project.

<p>The Harrison board began studying the move last October. The board will continue evaluating options through the summer and may approve a final plan this October.

Along with local approval, new hospital will need require a certificate of need from the state Department of Health, typically a six- to nine-month process. The public will have the opportunity to comment on the proposal.

Bosch, who is retiring at the end of July, said Harrison will also continue talking to stakeholders and gathering community input. Nothing will happen fast, he said.

"Our city, our county and the public will have time to adjust," he said. "Our employees will have time to adjust."

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