CARLSBAD, Calif. – In an effort to save money over the long haul, Oceanside, Calif.-based Tri-City Healthcare District recently purchased an MOB complex in Carlsbad that houses its wellness and wound care programs. The public healthcare district paid $47 million for the facility, which was sold by private development firm ECR Corporate Center.
The 58,000 square foot, two-story facility was custom built in 2009 for Tri-City to house its wellness center, which contains a wide array of exercise and rehabilitation equipment and services, including a swimming pool that helps patients recover from orthopedic procedures.
Included in the deal was the adjacent 25,000 square foot MOB housing the Tri-City Wound Care and Hyperbaric Medicine Program.
In recent years, executives with Tri-City have been saying that the lease arrangement with ECR was costing the health district money. That lease arrangement included every-other-year rent increases of 6 percent.
David Bennett, chief marketing officer for Tri-City, told local news outlets that buying the complex, instead of leasing it, is expected to save the public healthcare district about $1 million per year. He noted that Tri-City financed $26.5 million of the purchase with a loan from MidCap Financial, with the balance coming from a revolving line of credit and hospital reserves.
“This acquisition benefits the long-term financial health of Tri-City Healthcare District,” said Tri-City Medical Center CEO Larry Anderson in a statement.
“By purchasing these facilities, Tri-City Medical Center will save as much as $60 million by the end of the lease period and will increase its current liquidity by $10 million in addition to owning the Wellness Center and the Medical Office Building.”
Tri-City has been facing difficult financial times, as its June budget statement showed an $11.1 million loss. It has taken steps to lower costs in recent months, including staff layoffs and forming a partnership with the nearby Fallbrook Healthcare District.
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