Unique partnership minimizes risks, allows Essentia to re-invest in expanded facility operations
With the development of the 26,633-square foot expansion, MedCraft will allow Essentia to complement the existing Lakewood services with expanded primary, specialty and diagnostic services along with retail pharmacy. (Rendering courtesy of MedCraft)
MINNEAPOLIS (August 15, 2017) – MedCraft Healthcare Real Estate – a national leader in the development, financing and management of ambulatory care and medical office buildings – has partnered with Essentia Health and a group of physician leaders in Grand Rapids, Minnesota, to improve and expand access to affordable, high-quality healthcare services in Itasca County and surrounding areas. Essentia selected MedCraft as its real estate partner for the project to provide the capital and expertise for both the building acquisition and expansion, so Essentia can invest its resources into expanded operations at the facility.
“The decision to partner with local physicians and a real estate developer to acquire and expand the existing facility makes strategic sense,” states Jim Berarducci, a strategic advisor for Essentia on the project. “Establishing a new location in a competitive market can be a risky move, but partnering with well-respected physicians in the community to build on existing services and leveraging the capital and expertise from an experienced healthcare developer like MedCraft allows Essentia to enter the market quickly while minimizing its financial risk.”
The partnership was formed through Essentia Health’s investment in the Lakewood Surgery Center, a facility that has been serving patients for the past 11-years, and MedCraft’s purchase and expansion of the Lakewood Professional Building. With the development of the 26,633-square foot expansion, MedCraft will allow Essentia to complement the existing Lakewood services with expanded primary, specialty and diagnostic services along with retail pharmacy. MedCraft will develop the expansion on a turnkey basis and turn it over to Essentia next spring.
Essentia selected MedCraft as its real estate partner based on its successful track record of developing similar projects and expertise in creating highly efficient and effective ambulatory care facilities.
“Our role is to deliver and implement Essentia’s facility brand to the community as quickly and cost effectively as possible to ensure that patients have a great experience at the lowest possible cost when the facility opens next May,” said Eric Carmichael, MedCraft Principal. “By building on Essentia’s most successful clinic operations and applying our national best practices, I’m confident that we will accomplish this objective for the Grand Rapids community.”
MedCraft selected Minneapolis-based Kraus-Anderson as the general contractor and St. Paul-based BWBR as the architect on the project.
About MedCraft Healthcare Real Estate, LLC
MedCraft Healthcare Real Estate is a national leader in the development, financing and management of ambulatory care and medical office buildings. MedCraft focuses solely on healthcare real estate projects and has partnered with healthcare systems and physicians in more than 80 projects totaling $3 billion throughout their 32-year operating history. To learn more about MedCraft and its projects, visit www.MedCraft.com.
About Essentia Health
Essentia Health is an integrated health system serving patients in Minnesota, Wisconsin, North Dakota and Idaho. Headquartered in Duluth, Minn., Essentia Health combines the strengths and talents of 15,000 employees, including more than 1,900 physicians and advanced practitioners, who serve our patients and communities through the mission of being called to make a healthy difference in people’s lives.
About Berarducci & Company
Berarducci & Company is a strategic advisory practice for healthcare providers. A hallmark of our practice is providing the leadership and objectivity to bring qualitative issues and quantitative data to the best available solution that clients can implement. Jim Berarducci can be reached at jim@berarducci.com.
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