Industry Pulse (Febuary 2006)

CLEVELAND – The board of directors of University Hospitals Health System (UHHS) in mid-January unanimously approved core elements a vast new strategic plan, called Vision 2010. The plan calls for investments of more than $1 billion, including significant upgrades to the University Hospitals of Cleveland (UHC) campus, new facilities and considerable expansions at several of the system’s hospitals. Included would be the construction of a 200-bed freestanding cancer hospital on the UHC campus, a major renovation and expansion of the pediatric and adult emergency department, and a new neonatal intensive care unit (NICU). The plan would also include the development of additional suburban ambulatory surgery centers and more than $100 million in technological enhancements, including system-wide electronic health records. The system says it plans to finance the projects through operating and government funds, debt and donations. Most of the projects are slated for completion within five years.

WASHINGTON – Officials from the District of Columbia and Howard University recently reached agreement on a plan to build a new $400 million, 250-bed hospital in the southeast section of the nation’s capital. The project, known as the National Capital Medical Center, still needs approval from the D.C. City Council. The partners would split the cost of construction, with each side having a $212 million cap on its involvement. Ownership of the facility would transfer to a new not-for-profit corporation after the building opens. The target date for completion is 2009.

PORTLAND, MAINE – Mercy Hospital of Portland recently unveiled plans for a $162 million construction program at the site of its planned new campus on the Fore River. Construction is scheduled in two phases. The first phase would include a 150,000 square foot replacement hospital and a 75,000 square foot medical office building (MOB). The second phase would include a hospital addition of as much as 200,000 square feet along with an MOB and hospital administration building. The target date for the launch of construction on the $71 million first phase is summer 2006. The hospital’s plans must receive approval from local planning officials before construction can begin.

VIRGINIA – MediCorp Health System and HCA Health Services of Virginia Inc. recently presented Virginia state health officials with separate medical construction plans in a region that includes Stafford and Spotsylvania counties. The area is currently home to just one hospital. MediCorp has provided the most specific details for its plan, as its proposal calls for a 100-bed, 250,000 square foot, $158 million hospital on a 34-acre parcel in the Stafford area. HCA has earmarked a 75-acre parcel in Spotsylvania County as the site for a hospital with as many as 130 beds. The state Certificate of Need (CON) review process for the proposal is expected to begin in March.

FRANKLIN, Wis.  – Illinois-based Wheaton Franciscan Services Inc. has announced plans for an $80 million, 275,000 square foot outpatient center in Franklin that would include facilities for overnight stays. The center, slated to include surgery and emergency services, would initially have 23 beds; long-range plans anticipate as many as 100 beds at the facility. Construction is scheduled to begin in summer 2006 with completion targeted for late 2007.

DALLAS – Texas provider Arlington Memorial Hospital has announced expansion plans that would add 200,000 square feet of space at the hospital and include construction of a $76 million surgical tower. The surgical tower would add 16 operating rooms for inpatient and day surgery and 48 private rooms. Construction is slated to begin in February with completion targeted for September 2007.

PHILADELPHIA – Officials with Pennsylvania provider Main Line Health recently announced they are exploring the prospects for a new hospital in Concord Township of Delaware County. If the company pursues the project, it would be the first hospital construction project in the region in nearly 30 years.

PHILADELPHIA – The Albert Einstein Healthcare Network and Montgomery Hospital Medical Center are exploring the idea of a partnership in an effort to develop a replacement facility for Montgomery Hospital in Norristown The two providers have targeted a site in Whipain Township as a possible location for a replacement. The providers would need to work out planning details with local officials and finalize plans for a partnership before moving ahead with development of a hospital in the 200- to 250-bed range.

LAWRENCE, Kan. – Positioning for potential medical development continues in the region along the major state highway between Lawrence and western Johnson County. The latest move comes from Lawrence Memorial Hospital, which has acquired a 21-acre parcel for $900,000 for future medical office development.  In recent years, Shawnee Mission Medical Center, with tentative plans for a 400-bed hospital, and Olathe Medical Center, with tentative plans for a 300-bed hospital, have acquired parcels in the region.

 

 

Also in the Works

Officials at Sparks Regional Medical Center in Fort Smith, Ark., recently announced plans for a $39.3 million, 96,000 square foot expansion program that would include an expanded emergency room, medical imaging, cardiac catheterization suite, cardiopulmonary medicine, a 24-bed intensive care unit and a centralized registration area. Construction is planned in two phases beginning in early 2006 with completion targeted for spring 2008… Geo Care Inc. of Boca Raton, Fla., has announced plans for a $37 million, 220-bed replacement facility for its forensic psychiatric hospital in Miami. Construction is scheduled to start this summer with completion targeted for late 2008… Fairbanks Memorial Hospital of Fairbanks, Ala., has announced plans for a $35 million expansion and upgrade of its emergency room facilities. Construction is scheduled to begin this spring… Whidden Memorial Hospital of Everett, Mass., is at work on a $10 million expansion project that would double the size of its emergency facilities.  Completion is targeted for spring 2007… Lancaster General Hospital of Lancaster, Pa., recently acquired property in the community from the Lancaster Family YMCA for $4.9 million. The provider has not announced plans for the property. q