A recent change in a South Carolina law is credited with opening the door for a new, multi-million dollar healthcare facility in North Augusta. Now, Georgia is considering a similar change.
The change was cited during Friday’s announcement of a new multispecialty clinic being developed by Augusta Oncology in the former Medac Building on Bluff Avenue.
“That begins with the Lieutenant Governor and the legislators that you see behind me,” said Brett Brannon, President and CEO of Palmetto Peach Development, which is preparing the building. “Without their efforts over many years, to get the CON (Certificate of Need) law repealed in the state of South Carolina, this project would not be happening. It’s just that simple. It started with them. They had the wisdom to do it, and we’re very appreciative.”
Lt. Gov. Pamela Evette (R) joined Brannon and other elected officials for the Friday announcement.
“With the elimination of CON, we have more treatment centers, we have more surgery centers, patients get cared for quicker, doctors can do it more affordably. And so, this is a win-win all the way around,” she said.
The Georgia General Assembly is now looking at South Carolina’s revision as a guide to overhauling Georgia’s CON, which is administered by the Department of Community Health (DCH).
“The Certificate of Need (CON) program is intended to achieve three goals: (1) to measure and define need, (2) to control costs, and (3) to guarantee access to healthcare services. Georgia began reviewing health care projects in 1975 under Section 1122 of the 1972 Social Security Act Amendments and Georgia’s CON program was established by the General Assembly in 1979,” from the department’s website.
The Georgia Senate Certificate of Need Reform Study Committee held a series of meetings across the state last year, including one in Augusta, to collect input from healthcare experts and providers on modifying the state’s CON.
Dr. Mark Newton, who is also the elected representative for Georgia House District 127, is a member of the committee. He knows first-hand the CON process, including appeals, can have on a healthcare project. His district includes Columbia County that is finally seeing construction of the county’s first hospital, but it was a seven-year battle.
In 2014, Augusta University Medical Center (then called Georgia Regents Medical Center), University Hospital, and Doctors Hospital all filed CONs with proposals to build a hospital in Columbia County. GRMC’s CON was approved, but the University Hospital and Doctors Hospital both appealed the decision. University Hospital ultimately dropped its appeal, but Doctors Hospital continued until, in 2021, the Georgia Supreme Court declined to hear the case, effectively upholding DCH’s initial ruling.
In South Carolina, the General Assembly approved legislation overhauling the requirement healthcare providers file a request with the Department of Health and Environmental Control (DHEC) for permission to build a new facility, provide additional medical service, or purchase certain medical equipment.
Gov. Henry McMaster signed the legislation in October 2023 saying in a news release, “South Carolinians will have greater access to affordable healthcare services with the repeal of the Certificate of Need laws. Everyone benefits when the proven power of the free market is unleashed in our state.”
South Carolina state Sen. Tom Young (R-District 24) was among those speaking at the Friday announcement. Young is a survivor of prostate cancer, a disease which claimed the life of his father in January 2023.
He said the Georgia committee was correct in taking the time to hold statewide meetings to get input from constituents and healthcare providers.
“This was not a one-year fight in South Carolina; it took us several years to do this,” he explained to ABD. “There’s actually a CON still in place for the hospitals, but it is to sunset in December of 2026. It still is in place for nursing homes, but it is eliminated for everything else. This announcement today is just one example of how more facilities are opening in areas to give patients more choices and more access to care. I would encourage the Georgia lawmakers to strongly consider doing what we’ve done in South Carolina.”
In late Nov. 2023, the Georgia committee announced it would recommend lawmakers revise the current CON requirements during the 2024 legislative session which began on Jan. 8.
If the legislature rejects an outright repeal of CON, the committee recommends a number of changes, including repeal of CON for new and expanded inpatient psychiatric services and beds along with requirements for services related to maternal and neonatal care. The committee would also recommend allowing multi-specialty clinics, particularly in rural areas.
The new clinic being built in North Augusta is part of the Beacon Bluff redevelopment project. That began with the rehabilitation of the former skating rink and carpet shop facing Georgia Avenue. The clinic will have a 30,000-square-foot medical oncology suite and a 15,000-square-foot state-of-the-art radiation center.
Tracy Duffie, CEO of Augusta Oncology, said the new center will be in addition to the existing Augusta Oncology Multispecialty Clinics in Augusta.
“Our patients have relayed to us that one of their most difficult challenges is traveling to multiple sites to receive their cancer care. This puts a strain on their family, and it puts strain on the patient,” she said. “This new center will be able to provide chemotherapy and radiation in one site. Our goal is to enhance the cancer patients’ experience and provide the most advanced care with cutting-edge technology for these patients.”
The projects in North Augusta have a combined budget of $35 million in private funds for the cost of the Medac building and Beacon Bluff, and an additional $8 million investment being made by Augusta Oncology for a total of $43 million. The projects are expected to create 250 jobs.
