Olympic Medical Center is poised to make a significant expansion to its cancer care facility in Sequim, even if state and federal funding sources are uncertain.

The OMC hospital board last week got a detailed look at an estimated $7.9 million project that grows the current Olympic Medical Cancer Center at 844 N. Fifth Ave., Sequim, by 10,900 square feet.

“I think it’s very important the Sequim campus continue to grow, because of the demand,” Olympic Medical Center CEO Eric Lewis said.

The number of patient visits at the cancer center has grown by 157 percent throughout the past 10 years and even more growth is expected in the future, Lewis said.

He anticipates that number to climb as more people have cancer treated locally instead of in Seattle.

Hence the nearly $8 million cancer care expansion. Of that, $5 million is included in the 2017 OMC budget, with the rest planned for the 2018 budget, Lewis said.

“We’re still negotiating the final amount of that,” he said.

The figure is a better estimate than the $16 million-plus Port Angeles campus expansion set to be completed this year, OMC Chief Financial Officer Darryl Wolfe said, because the total includes contingencies and non-structural costs such as furniture and medical equipment.

Lewis said the goal is to fund at least $1 million of the project with donations, such as those from the OMC Foundation, which already has contributed about $300,000 — $100,000 of that from Sequim philanthropists Bill and Esther Littlejohn.

OMC took on a $20 million bond in December, part of which is slated for the cancer center expansion. (In addition to the Sequim project the bond covers existing debt, surgical services upgrades and other improvements.)

The OMC board will consider the proposed design for the expansion during its Feb. 15 meeting, Lewis said.

Board members would then approve putting the contract out to bid in July and either accept a bid or reformulate plans in August. The center could break ground as early as October, Lewis said, and barring delays the expansion would open for use in fall 2018.

Expansion details

If approved, the medical oncology department would be expanded from five exam rooms to about 15, Lewis said. Infusions services would expand from 11 rooms to 16, he said.

The expansion also includes a larger pharmacy.

“We have a pharmacy in the cancer center, but it is way too small,” Lewis said.

Lewis said the current design allows OMC to add on to the building in the future. Initial project designs show plans for more chemotherapy infusion rooms, employee offices and a conference room.

“It’s a very flexible design and it allows us to grow,” he said.

The Sequim site is a 20-acre campus. Lewis said OMC is looking at the project with a 50-year plan in mind.

“What we do today, we don’t want to negatively impact our future plans,” he said.

‘Site neutral’ funding

In December, Gov. Jay Inslee proposed a state biennial budget that included a cut of about $42 million for services to Medicaid patients at hospital-based clinics.

Lewis said he strongly opposes that recommendation, one which would cut OMC’s already under-funded Medicaid reimbursement of 65 percent in half at any site more than 250 yards from the main OMC campus in Port Angeles.

That would mean OMC receiving 33 cents-to-the-dollar reimbursement for services at the Sequim campus along with two key clinics on Eighth Street in Port Angeles.

“The challenge of building buildings on a 20-year horizon is, your revenue stream is uncertain; it’s determined by Olympia and (Washington) D.C.,” Lewis said.

“(The cut) encourages us to be building around the hospital, but the building needs to happen in Sequim.”

“It’s something that caught my attention in a big way,” Lewis said. “We’re definitely going to fight this.”

School support

OMC’s board of directors recently voted to support two school levy proposals in Sequim and another in Port Angeles. A special election is set for Feb. 14, with both districts asking for replacement levies to support programs and operations. Sequim also is asking voters to approve a capital project levy.

“It’s real important that the levies pass, so we can recruit and retain (health care professionals),” Lewis said.

“We don’t have enough that live here. Their No. 1 question is (about) schools.”

Property offer

OMC board members approved a $55,000 offer to purchase two lots in the 200 block of North Francis Street in Port Angeles. OMC hopes to use the lots for parking for up to 35 spots, Lewis said.

The project would require a rezoning from residential to commercial to be completed, Lewis said.

“We lack parking at that end of the campus,” he said.

ACA users

Lewis told board directors that OMC officials are concerned as legislators in Washington, D.C., look to make substantive changes or repeal the Affordable Care Act. He estimates there are 10,000 Clallam County residents receiving ACA health insurance — 7,000 via ACA-related Medicaid expansion and 3,000 from subsidized health insurance exchange.

“The first thing people are going to need is coverage,” Lewis said.

Peninsula Daily News reporter Jesse Major contributed to this story. He can be reached at 360-452-2345, ext. 56250, or at jmajor@peninsuladailynews.com.