10:21am

Thu June 13, 2013
Shots - Health News

New York Hospitals Shelve Rivalries For Proton Beam Project

During the recent debate in Washington, D.C., over whether to let to local competing hospital systems build rival proton beam therapy centers, an obvious question was raised: Why not team up?

"I get asked one question that I've not been able to answer, and that is why don't the hospitals work together and invest together and have these types of services that would serve a lot of the hospitals," said Amha Selassie, the director of Washington's health planning and development agency, during a hearings on proton therapy centers. "Especially the District of Columbia where the distances between the facilities are not that much and that the patient population is smaller than it is in many states and the physicians know each other and the administrators know each other."

Neither hospital system responded to Shots' requests for a comment on that option. In the hearing, though, Medstar officials said they were competing rather than collaborating because the systems had different visions for the centers. Georgetown University Hospital, Medstar's flagship, is looking to serve the D.C. community. Johns Hopkins aims to be an international treatment and research center, the Medstar officials said. Hopkins didn't comment.

But there are instances where hospitals do cooperate. Take New York City.

Back in 2010, the New York State Hospital Review and Planning Council, which grants hospitals the right to build new buildings and services, received inquiries about building proton therapy centers in the Big Apple, at a cost of $100 million to $200 million each.

The council was aware that the science on proton therapy, a high-tech radiation treatment for cancer, wasn't definitive. It costs nearly twice as much as standard radiation treatment, yet hasn't been shown to provide better care for most patients.

But in the fiercely competitive hospital market of New York City, that wasn't likely to dissuade major hospitals from wanting to build. "One hospital would get a proton center, and then there would a big free-for- all," says Jeff Kraut, chairman of the council and a senior executive at the North Shore-LIJ Health System. There's a "lemming approach to the acquisition of big-ticket equipment" in health care, he explains. Once one hospital has a fancy new piece of equipment, their competitors pile in, too.

At the same time, Kraut says the council asked, "How can you not have this capability in New York?"

So instead of waiting for individual hospitals to apply to build proton centers, the council decided to solicit proposals, promising to favor collaborative approaches.

They ended up with just two applications, each from a consortium of the largest health care systems in the region. The winner was the New York Proton Center, made up of Mount Sinai Medical Center, Memorial Sloan-Kettering Cancer Center, Continuum Health Partners, NYU Langone Medical Center, and Montefiore Medical Center and for-profit developer 21st Century Oncology.

Construction of the New York Proton Center, which is expected to cost $235 million, hasn't begun yet. But Kraut says he's proud of the approach the council took.

As for the situation in Washington D.C., two centers got approval last month from Selassie and his committee to build. One will be owned by Johns Hopkins Medicine's Sibley Hospital and the other by MedStar Georgetown. They will be built just three miles apart in affluent neighborhoods, where they will compete for patients who have private insurance.

They will also compete with a third facility currently under construction 40 miles away in downtown Baltimore, which is owned by for-profit developer Advanced Particle Therapy and will be staffed with doctors from the University of Maryland next door. Because it is privately owned, the facility did not need the state's permission to build.

Barbara Ormond, a member of the project review committee in D.C. who ultimately recommended the Hopkins and MedStar proton projects both be approved, expressed reservations throughout the hearing process. Upon hearing of the New York City decision, she says a similar approach "would be a really good outcome" in Washington as well. "That's something that in the future the committee might want to look at."

Doctors at the University of Maryland say they reached out to physicians at the other hospitals to discuss a possible collaboration. "We have actually had discussion with physician leaderships both at MedStar and Hopkins of why not work together, given the size of this facility to do this," said Dr. William Regine, a radiation oncologist at the university. "And the truth is, if you left it at the physician leadership level, we could probably figure it out. It's more the administrative leadership at MedStar and Hopkins that are positioning themselves as wanting to have these."

A spokesperson from Hopkins said the health system will not comment on the proton therapy center until the details of the District's decision have been analyzed. MedStar didn't respond to several requests for comment.

Kraut, with the New York planning council, says it may not be too late for D.C. to change course. He says maybe Hopkins and Medstar "will still come together and say, 'This is crazy. Let's do it together.' "

Copyright 2013 Kaiser Health News. To see more, visit http://www.kaiserhealthnews.org/.