UNC Health and Wilmington Health are taking steps to bring a potential comprehensive oncology program to Wilmington, with state regulators granting an exemption for the project's medical office building as another part of the project is under review.

The two healthcare providers applied in June for the ability to establish a positron emission tomography (PET) scanner in Wilmington, which goes along with plans for a freestanding cancer center called Coastal Cancer Care & Imaging (CCCI).  

While the PET scanner awaits state approval, the medical office building intended to house the PET scanner and subsequent cancer center does not require a certificate of need application. 

According to state officials, the N.C. Department of Health and Human Services' Division of Health Service Regulation issued a letter of exemption to CCCI on June 25, allowing the organization to develop the medical office building without a certificate-of-need review. The building would be constructed adjacent to Wilmington Health’s existing medical office building at 2421 Silver Stream Lane, according to documents submitted to the state by CCCI.

While UNC Health currently owns CCCI, CCCI is expected to become jointly owned by Wilmington Health and UNC Health, with UNC Health holding a 51% stake and Wilmington Health holding 49%, the documents state.

If approved, the project would be the first freestanding PET scanner in New Hanover County and, according to the application, a lower-cost alternative to the existing hospital-based PET scanners located within Novant Health New Hanover Regional Medical Center and Novant Health Scotts Hill Medical Center. 

The healthcare providers want to open the program, which will include oncology, hematology and infusion services, as early as 2028. 

According to David Schultz, chief medical officer at Wilmington Health, the establishment of a freestanding PET scanner also allows the organization to use the scanner for cardiology and neurology. 

"There are uses for PET scanners beyond oncology that locally we don't apply,” he said to the Business Journal in July, “because we don't really have capacity to do heart tests with PET scanners."

The application identifies high and emerging needs in the service area, particularly in New Hanover and Brunswick counties, that exceed those reported at the statewide level.

“Population growth, significant increases in senior populations, and elevated rates of cancer, cardiovascular disease and neurological conditions are driving demand for PET imaging services, with this demand concentrated in the southeastern counties that CCCI will serve," the application states.

According to the filing, Wilmington Health performs an average of 40 cardiac imaging procedures a week that could be candidates for PET imaging, citing the technology's "superior diagnostic capabilities."

If approved, CCCI will contract with UNC Radiology for interpretation of PET studies and will draw on clinical expertise from the UNC Lineberger Comprehensive Cancer Center, the only public NCI-designated Comprehensive Cancer Center in North Carolina.

According to Schultz, the partnership with UNC Health – and the establishment of an academically based cancer center – is key to retaining patients in a high-demand region seeking high-quality cancer services. 

"I think that what gets lost is we're really all one medical community,” Schultz said. “The physicians, whoever our employer is, we all need to succeed."

"The growth in services in the community is really exciting,” he added, “and having having other other players is a good thing.”

The new medical office building would be approximately 9,800 square feet and one story. Approximately 3,800 square feet would be allocated to the PET suite, pending state approval. The remaining space in the building would consist of clinical practice space.

The projected cost of the PET scanner project is $5.3 million, to be paid in cash by UNC Health. That cost includes the new building ($2.25 million), medical equipment ($1.2 million) and other expenses.

Division of Health Service Regulation has 90 to 150 days to approve the establishment of the PET scanner. Because the review period began July 1, a decision could come between late September and late November.