While city planner Ashley Combs has not made a formal recommendation in her staff report on this re-zoning request, the city’s economic development department is supportive of the KHN request noting that its “a natural outgrowth of the plan to serve the community.”
MORE: Kettering Health wants to add hospital beds to Middletown medical center
Last week, Premier Health President & CEO Mary Boosalis and Mike Uhl, Atrium’s president, sent a letter to the Planning Commission, city and KHN officials opposing KHN’s request citing an “overbedding” situation and the duplication of services would strain the positive operating margins and place other services at risk.
“First, let us be clear: Atrium Medical Center and Premier Health do not fear competition; in fact, we embrace it. We did not oppose Kettering Health Network’s request to include an emergency department at its new Middletown location,” Uhl and Boosalis wrote.
The letter said “while creating more services might seem like a positive step, it’s important to understand that business dynamics often are very different in health care.” They said adding more services when there is no demand “is truly a zero sum gain for the community, and could have significant unintended consequences.”
The letter said there are already plenty of inpatient beds to meet the demand in Middletown and noted that cities of similar size, such as Hamilton, have seen the number of local hospitals decrease from two to one in recent decades. They also raised concerns about the impact of “overbedding” that has been seen in the region which resulted in Premier Health’s recent decision to close Good Samaritan Hospital in Dayton.
“This proposed addition of inpatient beds would not represent economic development for the city of Middletown; it would be economic disaster,” the letter said.
They also noted the hospital’s $300 million investment when it opened in 2007 and continues to invest in the community to bring new services and jobs.
“To deviate from that master plan sends the wrong message to the city’s business community, especially given the dividends that it has paid so far,” the letter said.
MORE: Emails: Health systems each worked to sway Middletown on rezoning
In September 2017, KHN attempted to change the zoning last spring before its new $36 million Middletown medical center opened in August. While there has been an understanding that the Renaissance Development Opportunity Area would only feature Atrium Medical Center as the only hospital, there were no changes in the current zoning code or city ordinance or resolution specifying that understanding.
At that public hearing, Premier/Atrium rallied their supporters and put pressure on the Planning Commission to deny KHN’s request even though the city staff had recommended it. KHN withdrew the request before City Council had reviewed the Planning Commission’s decision to deny.
KHN opened its $36 million, 67,000 square-foot Middletown facility on Aug. 8.
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