Health System faces new challenge

Officials do not feel directly threatened by Allegheny University's move to expand. The Penn Health System is facing a possible threat from Allegheny University, which recently announced plans to expand its already vast medical system. Since its founding almost four years ago, the Penn Health System has grown in several directions -- forging alliances with other hospitals and health centers while creating a base of primary care physicians. At a press conference over spring break, Allegheny's president -- accompanied by Mayor Ed Rendell and Sen. Arlen Specter (R-Pa.) -- released a similar expansion plan, extending the school's medical facilities in Center City. But University officials said they do not see Allegheny's large-scale expansion -- which is popular with the city's government -- as a major threat to Penn's Health System. The Allegheny plan calls for the construction of two new buildings, including an Ambulatory Care Facility -- with a state-of-the-art cancer center -- and a power plant. Allegheny University spokesperson Merrill Meadow estimated that 400 construction and other full-time workers will be employed to build the new facilities at a cost of approximately $100 million. "The Ambulatory Care Facility will provide us with another way of providing very high quality care to an expanding group of people that we serve on a regular basis," he added. Allegheny's new power facility is scheduled to open in 1998, and savings from the plant will equal the costs of its construction within 10 years. According to Meadow, the system will continue its expansion beyond this project. "Our president announced? that the university plans at some point in the near future to expand research facilities, administrative facilities, as well as student residence facilities," he said. But Penn does not see itself being left in the dust by Allegheny's expansion -- or that of any other area system. "Allegheny is embarking on an effort to establish a cancer center, and we have been a leader in cancer [research and treatment] for over 20 years," Hospital of the University Of Pennsylvania Cancer Center Administrator Beverly Ginsburg said. "It's hard to say what the impact will be," Ginsburg noted. "You can build a facility, but that doesn't mean that you're providing great care." HUP's Cancer Center has consistently received funding from the National Cancer Institute and is recognized as one of only 27 comprehensive cancer centers nationwide. "That reflects our excellence in research at all levels, interdisciplinary cancer care, community outreach, professional and public education and improving the knowledge of our public about cancer through a variety of informational services," Ginsburg explained. And the Cancer Center -- along with the entire Penn Health System -- is expanding. "We're in the process of doubling the clinical area for hematology-oncology services, because in just a few years, we've outgrown our space," Ginsburg said. In addition, she said the Center has "just opened satellites at? Radnor and at Presbyterian Medical Center" and is continuing to recruit "world-class physicians" to work for the Health System. The University announced plans in 1996 to construct a $150 million medical research laboratory building -- referred to as Biomedical Research Building II -- by 1999. The $130 million project, which Health System spokesperson Rebecca Harmon described as the "largest construction project ever done at Penn," will contain research space for the Cancer Center and other institutes. The building will be located immediately adjacent to the Clinical Research Building and Medical Center Parking Garage on Curie Boulevard. Ginsburg added that the University will announce "a variety of exciting plans" for further expansion in the near future, but refused to elaborate, citing "confidentiality issues."