Friday, December 09, 2005

Norton's proposed move

Norton Hospital Inc. is considering a bold move with the consideration of changing the Certificate of Need (CON) from Southwest Hospital to a new facility being proposed in the Brownsboro Road area. [Southwest may lose hospital to northeast]

From a business standpoint this is probably an excellent move. Certainly the demographics support the move, and when you consider the new East End Bridge, it is probably a no-brainer.

The key indicator for hospitals is really physician-driven. If physicians are not utilizing the facility, it will fail. This appears to be the case for Southwest. With Baptist East and Surburban closer to the physician’s homes and offices, why would they want to drive to Southwest? It takes more time away from family and productive work. Traveling to multiple hospitals is time-consuming and a real hassle.

This shows good forward thinking on the Board’s part and they are meeting their fiduciary responsibilities.

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