Industry Pulse (June 2006)

Industry Pulse

CLEVELAND — Cleveland Clinic recently launched an ambitious five-year, $1.25 billion fundraising campaign to generate major financial support for the provider in four major areas.  The clinic is seeking $440 million to support a capital improvements campus master plan, $300 million to support clinical and basic research, $275 million for medical and patient education and $235 million for innovative patient care. Major elements of the clinic’s capital plans include construction of a new heart and vascular institute as well as a clinic expansion expected to increase capacity by nearly 50 percent.

BURLINGAME, Calif. — Voters in California’s Peninsula Health Care District are scheduled to have the final say over plans by Mills-Peninsula Health Services to build a $528 million replacement hospital in Burlingame, a few suburbs south of San Francisco. The hospital is planned as a 243-bed facility and must be completed by 2013 in order for the provider to meet new California seismic standards. Planning for the project has run into several delays as rising building costs in the region have led to redesign work on the plan. The provider’s board of directors recently agreed to submit the latest project plans to voters for approval later this summer.

MILWAUKEE, Wis. – Children’s Hospital of Milwaukee recently announced plans for a $117 million, 425,000 square foot expansion and renovation program. The provider plans to add 72 beds and expand its pediatric intensive care and heart units. Work is expected to start this summer with completion targeted for 2009.

BEACHWOOD, Ohio — Cleveland area provider University Hospitals Health System recently announced plans for a 600,000 square foot medical development in Beachwood. The project would include a 200-bed hospital, ambulatory surgery center and medical office building (MOB). Construction is scheduled to start in 2007. A variety of completion dates are envisioned for the different elements of the project: the office building in 2008; the surgery center in 2009; and the hospital in 2010.

OREGON — Eugene-area provider McKenzie-Willamette Medical Center is working to overcome resistance from neighboring property owners to its plans for a new $225 million, 423,000 square foot replacement hospital in north Eugene. Plans also call for a 100,000 square foot MOB. The provider needs to receive a zoning change from local officials before moving forward with the project. Several neighborhood groups have made formal objections about the project to city planning officials, but the provider has indicated it will continue pursuing approval for the plan.

GRAND FORKS, N.D. — Grand Forks-based Altru Health System recently announced plans for a $100 million expansion that includes a new ambulatory surgery center as well as expanded cardiac and cancer facilities at the 261-bed facility. 

RIO RANCHO, N.M. — Officials at Presbyterian Healthcare Services recently said they are developing plans for a new community hospital in Rio Rancho. Officials have not released details of the plan other than a statement calling for a two-year construction timeline once the project breaks ground. The next meeting of the provider’s board of directors is in the fall and officials are expected to present a detailed plan then.

Also in the Works

The Nebraska Medical Center has announced plans for a $90 million medical construction program in Bellevue, Neb., that includes a new 200,000 square foot hospital and outpatient facilities. Construction is scheduled to start this year with completion targeted for fall of 2008… Wisconsin provider Oconomowoc Memorial Hospital recently announced plans for a three-year, $37 million renovation and expansion program that includes an addition of 44,000 square feet… Two different Indiana developers have launched MOB projects near St. Francis Hospital in Indianapolis. Allen Commercial Group is developing a group of four medical office buildings in the area while Lauth Property Group Inc. is building two office buildings. The Allen projects total about 283,000 square feet, while the Lauth projects total 120,000 square feet… California provider Community Health Systems is developing plans for a 105,000 square foot, $60 million replacement hospital for the Barstow Community Hospital. The target date for completing the project is 2011.