Plans for a multimillion-dollar imaging center in Mililani Mauka are welcomed by at least some area residents who see it as a benefit to Central O'ahu, but there are also some concerns about its potential impact on the financially vulnerable Wahiawa General Hospital.

Advanced Medical Imaging LLC is seeking state approval to build a facility in Mililani Mauka that will provide outpatient MRI, CT scan, X-ray and ultrasound services. The project, which requires a certificate of need from the state Department of Health, is expected to cost $5.8 million, with operations tentatively scheduled to begin in May 2008, according to an application the company filed with the state in March.

But Wahiawa General Hospital, which recently announced it will indefinitely suspend its obstetrics unit by the end of this month to reduce financial losses, said the proposed imaging center would pull away much-needed business from the hospital.

Outpatient radiology is one of the key sources of revenue for Wahiawa General Hospital, said Don Olden, the hospital's chief executive officer. The proposed imaging center would cost Wahiawa General an estimated $1 million in lost revenue a year, he said. The hospital generates revenues of $38 million to $40 million annually.

That would "increase the challenges on this hospital for its survival," Olden said. Centers like the proposed imaging center "strip away profitable services from the hospitals, so it makes it increasingly difficult for the hospitals to sustain themselves."

Officials from Advanced Medical Imaging could not be reached for comment yesterday. The company is owned by The Radiology Group Inc., a radiology physician group that has provided interpretive services at O'ahu hospitals since 1978, according to its application.

Advanced Medical Imaging is seeking a "certificate of need" from the Hawai'i State Health Planning and Development Agency for the project, which is slated to be in a commercial area near the McDonald's in Mililani Mauka.

The state health agency evaluates, among other criteria, the need for the service as well as its relationship to the existing healthcare system in the area.

Advanced Medical Imaging said in the application it will supplement and not duplicate existing services and that "any possibility of negative impact on O'ahu providers is anticipated to be minimal, if at all."

It cited state data showing the growth in MRI and CT procedures on O'ahu between 2000 and 2004 and projected further growth in the demand for such procedures.

"With the continuing expansion in the population, it becomes a necessity to expand medical imaging service availability at a similar rate," it said.

"The addition of this facility and its services will improve primary-care delivery and community wellness by providing more immediate and reasonable access and will serve as a 'hub' to the benefit of the community," it said.

But Olden said he doesn't believe the center is necessary.

He acknowledged that Wahiawa General does not have an MRI unit, which is planned for the Imaging Center, but said "there are talks about putting it in ... in the future."

The neighborhood boards in Mililani Mauka and Mililani-Waipi'o haven't taken an official position on the imaging center, but at least some board members personally support the proposal.

"I think it will be a positive thing for the community," said Dean Hazama, vice chairman of the Mililani Mauka/Launani Valley Neighborhood Board. He added that the project would be close to the Olaloa Retirement Community and wasn't convinced it would severely hurt Wahiawa General Hospital.

Richard Poirier, chairman of the Mililani/Waipi'o/Melemanu Neighborhood Board, also supports the project. A proposed board resolution to support the imaging center was withdrawn after the board heard concerns from Wahiawa General officials last week.

"I think it would be good because it brings state-of-the-art equipment to Central O'ahu, so the community benefits from it," Poirier said. "The downside, of course, is it may have a detrimental impact on Wahiawa General, (and) ... a bunch of other hospitals, too. But based on what (Advanced Medical Imaging) told me ... there is a market for this, and the market is growing."

But Mililani/Waipi'o/Melemanu board member Ann Freed has concerns.

"I think it needs study and I want to see some convincing that it's not going to adversely impact on the ability of Wahiawa Hospital to stay afloat," she said. "I would want to see what is its potential impact on the hospitals."

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.