State regulators oppose new rehab center in Beverly

March 28--BEVERLY -- A proposal to build a $23 million short-term rehabilitation center on Sohier Road is getting the thumbs-down from state regulators.

A staff report by the Massachusetts Department of Public Health has recommended that the state deny an application for the new facility, saying it is not needed and could hurt existing facilities that care for poorer patients.

The state's Public Health Council is scheduled to vote on the application on April 12.

The rehabilitation center was proposed last year by out-of-state investors. It called for a "high end" 90-bed facility to provide short-term rehabilitation of 20 to 30 days for conditions such as major joint replacement, stroke and heart attack.

The facility, however, would not accept patients on Medicaid, the government health insurance program for low-income people. Officials at existing rehabilitation facilities on the North Shore said that would allow the new facility to "siphon off" higher-paying patients and make it more difficult for their facilities to care for poorer patients.

The report by DPH staff agreed, saying that "while the proposed project might be a sound business investment, it does not meet the health care needs of the community and does not comport with the (state's public health) mission."

The company, Transitional Care of Beverly, released a statement saying it is "disappointed" in the report.

"The unfortunate conclusion is that the residents of the community are likely being denied access to innovation within the healthcare continuum," the statement said.

The DPH report said the project failed to meet six of the eight factors required for approval, including proper planning and consultation with local hospitals and existing facilities. The applicants initially said the project was the result of "significant strategic planning," but later acknowledged they attempted to speak with the relevant agencies "by leaving voicemail messages," according to the report.

The state also dismissed the applicants' contention that the new facility would be a "replacement" for an existing facility, qualifying it for a less stringent approval process. In fact, the applicants had purchased the "out-of-service" bed licenses of a nursing home that had closed in 2005.

The state also said there are 16 other facilities in the area that provide short-term care with "more than sufficient capacity" to meet the needs of patients.

In response to the applicants' assertion that the current facilities are "older" and "becoming functionally obsolete," the state report pointed out that two new facilities have opened and three others have been remodeled in the last five years.

The report also pointed out that all 16 people who commented on the project at a public hearing last November "expressed strong opposition" and recommended that it not be approved.

The new facility was scheduled to be built on the site of the Roller Palace and Soccer Etc., which would have been torn down. Those businesses remain open.

Staff writer Paul Leighton can be reached at 978-338-2675 or [email protected].

___

(c)2017 The Salem News (Beverly, Mass.)

Visit The Salem News (Beverly, Mass.) at www.salemnews.com

Distributed by Tribune Content Agency, LLC.