Hospitals spar over cancer facilities

A feud between two major Boston-based hospitals over a lucrative cancer treatment facility in the western suburbs is heating up.

Last year, Massachusetts General Hospital proposed building a $13 million cancer treatment facility at Newton-Wellesley Hospital. In February, officials at the Beth Israel Deaconess Hospital campus in Needham filed a 10 Taxpayer Group petition with the state opposing the project, because they already operate a nearly identical facility less than 5 miles away in Waltham.

Millions of dollars in patient revenues are at stake. State officials predict that the number of cancer patients in Massachusetts will increase 18 percent from 2000 to 2010, from 32,339 to 38,248 people. Hospitals across the state are looking to expand radiation centers, which bring in valuable reimbursements from insurers.

No public hearing date has been scheduled in the matter. A spokeswoman for the Department of Public Health said state officials are still considering their recommendation to the Public Health Council, which votes on the outcome.

"DPH will bring this matter to the Public Health Council when we have completed our analysis and are prepared to make a recommendation," DPH spokeswoman Donna Rheaume said in an e-mail.

The dispute between Newton-Wellesley Hospital and Beth Israel Deaconess has also strained the relationship of the two hospitals' chief executives, both Newton residents and longtime friends.

According to the 10 Taxpayer Group petition, Newton-Wellesley Hospital takes cancer patients in a van to Massachusetts General Hospital in Boston, bypassing the Beth Israel Deaconess Waltham facility. The Waltham cancer treatment center currently operates at 50 percent of its capacity, treating 20 patients a day.

Beth Israel Deaconess chief executive Paul Levy, who referees soccer games in a league that includes the daughter of Newton-Wellesley Hospital chief executive Michael Jellinek, said he approached Jellinek with an offer for the hospitals to collaborate. Jellinek said no.

"It's not just money, it's a question of having services that are convenient to your patients," Levy said. "We were trying to cut through that and do something interesting and innovative by cooperating. We were disappointed when they said no."

Jellinek said the hospital turned down Levy's offer because it wanted to build its own facility. Newton-Wellesley Hospital recently expanded, he said, and wants to offer more patient services on site.

"It provides a sense of security to patients," he said. "Sending them over to Waltham means we're involved with a whole different system. The doctors don't know each other that well."

Newton-Wellesley's proposed cancer treatment center would house a linear accelerator, which is used for radiation treatments for cancer patients. Beth Israel Deaconess received permission from the state to operate similar equipment at the former Waltham Hospital when the facility closed several years ago.

State regulators tightly control the number of hospitals allowed to use such equipment to avoid duplication of services. Applicants that want to offer the treatment must show that patients need to travel at least 30 minutes to the nearest facility or have to wait at least seven days to begin their treatment.

According to filings with the state, Massachusetts General Hospital's radiation treatment facility is oversubscribed and operating at 113 percent of capacity. About 55 percent of Beth Israel Deaconess' Waltham patient referrals come from doctors at Newton-Wellesley Hospital, business that could be lost if the state approves Newton-Wellesley's proposal.

"Certainly I know they're not pleased [about the 10 Taxpayer Group filing]" Levy said. "But this is a business issue. It's also a patient satisfaction issue."

Beth Israel Deaconess also has a proposal before the state for a $29.6 million expansion of its hospital in Needham, including a new MRI suite and expansion of the lobby, atrium, and emergency room.

The hospital has asked the state to waive the need for approval of the project, arguing that when each of the projects is considered individually, they fall under the state's $13.6 million threshold for a review.

Laura Weil, interim director of the health advocacy graduate program at Sarah Lawrence College, said hospitals are extremely competitive when it comes to drawing patients in to a network. A network's market share determines its ability to negotiate rates with insurance companies.

"Hospitals are struggling, really, really struggling, for patients. And they want to attract patients who will pay for the services one way or the other," she said.

She said that competition is especially fierce in wealthy suburbs.

Alan Sager, a professor of health policy and management at Boston University, said he had concerns that Massachusetts General Hospital's offer to build another linear accelerator at Newton-Wellesley Hospital, so close to the Waltham facility, could unnecessarily drive up healthcare costs.

"It is apparently an unnecessary duplication of a very costly piece of equipment," he said.

The state's Public Health Council, which will decide the issue, is a 15-person board mostly appointed by the governor. It meets once a month.

Megan Woolhouse can be reached at mwoolhouse@globe.com.