SUSSEX COUNTY, Del. - Bayhealth is asking Delaware health regulators to resolve legal and regulatory questions surrounding ChristianaCare’s proposed neighborhood hospitals in Georgetown and Camden before moving forward with a substantive review of the applications.
In an Aug. 14 letter to the Delaware Health Resources Board, Bayhealth said ChristianaCare is seeking Certificates of Public Review for facilities described in the applications as “microhospitals.” Bayhealth said each proposed facility would include eight emergency department beds and eight inpatient beds intended for short-stay and community-based hospitalizations.
Bayhealth argues Delaware law does not contain a statutory definition of a “microhospital” and that Certificate of Public Review statutes and regulations do not establish the legal characteristics, licensing status or operating standards for that type of facility.
Because of that, Bayhealth is asking the board to determine whether the applications can be considered complete and what standards should apply during the review process.
Bayhealth is also asking regulators to examine the proposed ownership and governance structure involving ChristianaCare and Emerus. In its letter, Bayhealth said publicly available information indicates Emerus is a for-profit entity that would have a 49% ownership interest and governance rights in the proposed facilities.
Bayhealth did not state that the arrangement has been found to violate Delaware law. Instead, it asked the board to determine whether the proposed ownership, governance and operational structure complies with state requirements for hospitals. Bayhealth also requested that relevant ownership, operating, management and control agreements be provided for review.
Bayhealth is asking the board to defer further substantive review of the applications until those questions are resolved.
In a statement provided to CoastTV, Bayhealth said:
“Bayhealth remains committed to the Delaware Health Resources Board’s established review process for proposed high-cost healthcare expenditures exceeding $5.8M. We have significant questions regarding the additional proposed Georgetown and Camden hospitals, and we are not an outlier.”
ChristianaCare said it recently received Bayhealth’s letter and declined to comment on the substance of the proceedings while the matter is under state regulatory review.
“ChristianaCare is committed to serving patients closer to home and making high-quality care more accessible in the communities where they live. Neighborhood hospitals, sometimes referred to as micro-hospitals, are an emerging model of care delivery designed to provide the right level of care, in the right place, at the right time. ChristianaCare recently received a copy of the letter Bayhealth submitted to the Delaware Health Resources Board. As this matter is currently under review by a state regulatory agency, we decline to comment on the substance of the proceedings. ChristianaCare will provide all necessary information to the Board and looks forward to participating in the regulatory process.”
The Georgetown proposal is part of ChristianaCare’s planned health campus in Georgetown. According to Bayhealth’s letter, the proposed neighborhood hospital would include eight emergency department beds and eight inpatient beds. The Camden proposal would use the same eight-emergency-bed and eight-inpatient-bed model.
The Delaware Health Resources Board has not made the determinations Bayhealth is requesting. Bayhealth’s letter asks regulators to decide whether the applications meet state requirements and whether the proposed ownership and governance structure complies with Delaware law before proceeding with substantive review.
