Caabarrus Memorial Hospital Case Summary

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Background Statement: The board of trustees of Cabarrus Memorial Hospital has proposed to add open-hearth surgery to their cardiac services. They would have to consider getting a certificate of need, costs of renovation and staffing. The latter may include the hiring of Dr. R.S. Christy who has been part of the hospital staff for some time and was popular among the staff and patients. He is about to complete his fellowship and will have to make a career choice before soon. The board would like to make Dr. Christy the first cardiovascular surgeon.
Cabarrus Memorial Hospital was established in 1937 and has licensed capacity to 457 beds after 1982 when many of the hospital’s services were consolidated. CMH is a modern well-equipped facility that included several educational affiliations, which included a unique teaching arrangement with Duke University Medical Center. The CMH-Duke program began in 1968 with Duke faculty members leading
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North Carolina had 16 open-heart surgery programs in 11 counties and none of these were in the proposed CHM service area. All those competitors are located in the Charlotte area located about 25 miles from CHM. All the competitors were operating under nominal capacity, leading the Carolinas Medical Center to withdraw their application for CON (Certificate of Need). While other competitors did not see a growth pattern in the volume of open-heart surgeries. The location of Cabarrus Memorial Hospital is ideal as the competing open-heart surgery programs are 25-60 miles from the service population. Travel times of one to two hours are an inconvenience for patients. This in part due to competing programs located in the Charlotte metropolitan area, that was confusing for outside

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