Mergers & Acquisitions
- The University Medical Center and the University of Louisville have entered a partnership that brings together University Hospital and the James Graham Brown Cancer Center with KentuckyOne Health. All current UMC policies for women's health, end-of-life care and its pharmacy remain unchanged. UMC will continue to manage and operate University Hospital's Center for Women and Infants. The partnership will be structured as a joint operating agreement between UMC and KentuckyOne in which KentuckyOne will oversee most of the day-to-day operations. UMC will retain ownership of its assets and will operate the Center for Women and Infants.
- The boards and sponsors of Catholic Health East, Newtown Square, Pa., and Trinity Health, Novi, Mich., signed a non-binding letter of intent to come together into a unified national health. The boards also announced that Joseph R. Swedish, president and CEO of Trinity Health, would become president and CEO of the anticipated new organization, and that Judith M. Persichilli, president and CEO of CHE, would become executive vice president. The new system would have annual operating revenues of about $13.3 billion and assets of about $19.3 billion, and would return almost $1 billion to its communities annually in the form of charity care and other programs. The development of the consolidation is in its preliminary phase. Over the next few months, the systems' boards and management will pursue the potential consolidation and conduct due diligence with a goal of reaching a Definitive Agreement in spring 2013.
- Beaumont Health System, Royal Oak, Mich., and Henry Ford Health System, Detroit, have signed a letter of intent to combine their operations into a new $6.4 billion organization.The boards of the two not-for-profit systems authorized the development of the organization, which will include all of the assets, liabilities and operations of both Beaumont and Henry Ford under unified executive leadership and with integration of their 10 hospitals and 200 other patient care sites. Both partners have entered a period of exclusive negotiations and due diligence. A definitive agreement for the new, not-for-profit organization is expected to be complete in the first half of 2013.
- Montefiore Medical Center signed an agreement with Simone Development to lease an 11-story, 280,000-square-foot building at Hutchinson Metro Center. The project, scheduled for completion in the third quarter of 2014, will provide space for multidisciplinary approaches to care and integrating technology that allows Montefiore to provide necessary treatments without the need for hospitalization. The building will include an ambulatory surgery center, featuring 12 operating rooms and four procedure rooms; an advanced imaging center; onsite laboratory services and pharmacy; as well as new primary and specialty care practices. The initial lease agreement is for 16 years with the option to extend the lease or purchase the tower.
- The Children's Hospital of Richmond at Virginia Commonwealth University, located on the Medical College of Virginia campus, will build a new 245,000-square-foot, multistory, high-tech ambulatory pavilion for pediatric services. The pavilion will include diagnostic and treatment services for children, bringing into one location the majority of outpatient pediatric services currently on the MCV campus. Medical student education and clinical research studies will be included at the facility. It will contain four levels of pediatric care clinics including six specialty clinic pods, each with 12 exam rooms, a treatment room, support spaces and nurse work core. Also featured in the new pavilion will be pediatric-dedicated imaging, surgical and endoscopy procedure rooms, hematology/oncology and pediatric faculty offices. The Children's Pavilion is scheduled to be complete in.
- The U.S. Army Corps of Engineers, Savannah District, awarded McCarthy Building Companies Inc. a contract for the second phase of renovations on the Winn Army Community Hospital in Ft. Stewart, Ga., medical campus. The $38 million, four-year project consists of a 43,000-square-foot addition and 55,000 square feet of renovated medical space, including an emergency department, a nutritional department, outpatient ancillary and administrative departments. The ED and Family Medical Clinic will double in size. Currently, McCarthy is working on Phase I, a $23 million clinical renovation, including a 65,000-square-foot addition and 1,000-square-foot alteration to the hospital. The project architect is Leo A. Daly. Completion of the expansion and renovation is scheduled for October 2016.
- Princeton Baptist Medical Center, Birmingham, Ala., completed phase one of its east expansion project. With an anticipated completion date of May 2013, the three-phase construction project includes a 100,000-square-foot expansion along with 60,000 square feet of improvements to the original structure. Phase two is expected to be complete later this year. Phase one of the project includes 16 new operating rooms to replace the current operating rooms and introduces the hospital's first hybrid OR. The hybrid OR technology provides solutions to save critical time and keep cardiovascular, orthopedic spine, neurosurgical and vascular procedures minimally invasive. Space for a second hybrid operating room has been included for future expansion. In addition, the hospital addition includes a new gastrointestinal department, six GI procedure rooms, a new central instrument processing department for the entire hospital, a chapel and conference center, patient and visitor lobbies, and waiting rooms. Brasfield & Gorrie is the construction company on all phases.
- The $397-million Nemours Children's Hospital opened in October. The 630,000-square-foot hospital has 95 beds, all private rooms, a full-service pediatric emergency department, a NICU and PICU, and anchors a 60-acre, fully-integrated health campus that includes a new Nemours Children's Clinic and extensive research and education facilities.
- St. Joseph Medical Center, Houston's only downtown hospital, opened St. Joseph Medical Center in The Heights to provide access to health care for communities in northwest Houston. While Select Specialty Hospital will continue to occupy the building and provide long-term acute care services, St. Joseph will open a full service emergency department on the ground floor. The entire fifth floor has been transformed into a 48-bed unit for inpatient and outpatient care. The sixth floor contains four operating rooms, day surgery, post-anesthesia care, administration and support services. A wide range of diagnostic imaging including a new 64-slice CT scanner will be onsite for inpatient and outpatient care. Lab and pharmacy services will be housed there as well.
- St. Joseph Hospital, Eureka, Calif., opened its new North East Wing on Nov. 11. The 100,000-square-foot addition houses a pre-operative department, post-anesthesia care unit, surgical suite with eight operating rooms, catheterization lab, intensive care unit, progressive care unit, expanded emergency department, diagnostic imaging, sterile processing, expanded lobby and family lounges and additional patient and visitor comforts. The $145 million project came about as a result of an unfunded mandate requiring all hospitals to comply with updated state seismic laws by 2013. Though parts of the existing St. Joseph Hospital facility are compliant, the original building built in 1954 is not.
- Hospital for Special Surgery, New York, opened the Alfred and Norma Lerner Children's Pavilion, a "hospital within a hospital" that provides one-stop care for children with musculoskeletal conditions. With specialists, medical labs and rehabilitation all in one place, the pavilion focuses entirely on pediatric orthopedics and rheumatology. The space has more than 31,000 square feet dedicated exclusively to pediatric musculoskeletal medicine and includes the following: 10 new private patient rooms designed and furnished specifically for pediatric musculoskeletal patients and their families; a dedicated nursing station with a direct view of every patient room; outpatient facilities; an expanded pediatric imaging suite; orthopedically safe play areas for all, including siblings; a specialized, child-friendly pediatric gym; colorful exam and treatment rooms; and a nature-influenced design throughout, including special flooring made of recycled glass and LED lighting that gives the effect of flowing "rivers" of light for easy-to-follow navigation.
- Kindred Healthcare Inc. intends to open a 100-bed transitional care center (licensed for skilled nursing care) in Indianapolis on a site adjacent to St. Francis Health Indianapolis Campus. The center will specialize in intensive short-term rehabilitation therapy, including cardiac and orthopedic rehabilitation. Groundbreaking is expect in the first quarter of 2013, with the opening in the first quarter of 2014. Kindred plans to open a new 150-bed transitional care center in Las Vegas on a site adjacent to Universal Health Services Inc.'s Spring Valley Hospital Medical Center. The center will specialize in intensive short-term rehabilitation therapy, including cardiac, pulmonary and orthopedic rehabilitation. Groundbreaking is expected in the first quarter of 2013, with an opening in the first quarter of 2014. Kindred has opened a 67-bed transitional care hospital in Dayton, Ohio, with all private rooms and services such as an expanded intensive care unit, expanded radiology department with CT scanner and therapy gym.