7 hospital construction projects costing $300M or more


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Below are seven hospitals or health systems that recently announced, started or completed construction projects worth more than $300 million in the last two months, reported by Becker’s Hospital Review.

1. MetroHealth breaks ground on 264-bed Cleveland hospital
MetroHealth System in Cleveland broke ground April 15 on an 11-story, 264-bed hospital, part of a $946 million revamp.

2. Mount Carmel to open $361M hospital April 28
Mount Carmel Health System in Columbus, Ohio, will open its $361 million, 210-bed replacement hospital April 28.

3. McLaren Health to close 2 hospitals, consolidate services at new $450M facility
McLaren Greater Lansing (Mich.) will shutter two hospitals in South Lansing when its new consolidated $450 million campus near Michigan State University opens.

4. UPMC starts constructing $400M rehab, vision facility
Pittsburgh-based UPMC Mercy broke ground March 14 on a nine-story rehabilitation and vision tower. It is expected to cost $400 million.

5. New York hospital plans $2B campus revamp
Northwell Health’s Lenox Hill Hospital in New York City is preparing a $2 billion revitalization that will include upgraded clinical areas and residential apartments.

6. Sutter opens 274-bed hospital in San Francisco
California Pacific Medical Center Van Ness Campus, an 11-story, 274-bed hospital owned by Sacramento, Calif.-based Sutter Health, opened in San Francisco March 2. The hospital project cost about $2.1 billion.

7. Penn Medicine alters design of $1.5B pavilion
The design team responsible for Philadelphia-based Hospital of the University of Pennsylvania’s $1.5 billion pavilion has changed its plans for the layout and shape of the building. It is expected to open in 2021.



Jefferson CEO Dr. Stephen Klasko renews contract through 2024 — 5 notes from his tenure


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Stephen Klasko, MD, president of Thomas Jefferson University and CEO of Jefferson Health, signed another five-year contract with the Philadelphia-based health system, a spokesperson told Becker’s Hospital Review March 20.

Five things to know about the contract and Dr. Klasko’s first five years with Jefferson:

1. Dr. Klasko, who began leading the health system in 2013, will serve as president of Thomas Jefferson University and CEO of Jefferson Health through 2024.

2. Under Dr. Klasko, Jefferson has grown from three to 14 hospitals. Jefferson’s growth has largely taken place by merging boards across regions. The system has pending deals with Philadelphia-based Einstein Healthcare Network and Temple University’s Fox Chase Cancer Center, also in Philadelphia.

3. At the same time, Jefferson Health has gone from a $1.5 billion system to a more than $5 billion system, generating more than $100 million in savings and efficiencies.

4. New philanthropic initiatives led to the Sidney Kimmel Foundation in Philadelphia donating $110 million to Jefferson Medical College in 2014, representing the largest gift in its history. The college was renamed the Sidney Kimmel Medical College that same year.

5. Under Dr. Klasko’s leadership, Thomas Jefferson University now hosts design curriculum for medical students and operates the No. 3 fashion school in the country.



Penn State, UPMC Pinnacle rivalry intensifies


UPMC Pinnacle on Jan. 8, 2019 announced plans to expand its West Shore Hospital in Hampden Township in Cumberland County.

Harrisburg, Pa.-based UPMC Pinnacle revealed plans Jan. 8 to expand its hospital facility in Mechanicsburg, Pa. The announcement came several months after its rival, Penn State Health, submitted plans to build a 108-bed hospital roughly 1 mile away from UPMC’s hospital, according to Penn Live reports.

UPMC Pinnacle West Shore opened in 2014 with 102 beds. Officials said in their Jan. 8 announcement that an expansion was necessary, as the hospital “has consistently operated at 90 percent capacity.” Officials expect to complete the expansion, which will add 58 beds, by fall 2020.

Penn Live first reported Hershey, Pa.-based Penn State Health’s decision to build a 108-bed hospital in June 2018. Officials at the time said the decision to build a hospital was made because a large portion of their patients travel from the Mechanicsburg region, and that the new hospital will allow them better access to care. Officials said they aim to begin construction in the spring and open the hospital by June 2021, the report states.

To access the full report, click here.




15 hospital, health system construction projects worth $300M or more


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Below are 15 hospitals or health systems that recently announced or completed construction projects worth more than $300 million in the last three months, reported by Becker’s Hospital Review.  

1. Georgia approves $1.5B Children’s Healthcare of Atlanta hospital: 3 notes
Georgia approved Children’s Healthcare of Atlanta’s certificate of need application to replace the 325-bed children’s hospital in Atlanta with a larger one containing 446 beds, also in Atlanta.

2. California hospital opens $340M emergency pavilion
Washington Hospital in Fremont, Calif., opened its $340 million emergency and critical care pavilion Nov. 12.

3. Banner University Medical Center opens 16-story tower 
Phoenix-based Banner University Medical Center opened its 16-story, $417.9 million patient tower Nov. 6.

4. Hackensack University Medical Center to break ground on $714M expansion next year
Hackensack (N.J.) University Medical Center is on track to begin its $714 million expansion in the first quarter of 2019.

5. City approves part of UPMC’s $2B expansion plan
The Pittsburgh Planning Commission approved on Oct. 23 UPMC’s plan to build a vision and rehabilitation hospital in Pittsburgh as part of the system’s $2 billion expansion.

6. Santa Barbara hospital completes $820M renovation
Santa Barbara (Calif.) Cottage Hospital completed a series of renovations Oct. 10 that totaled more than $820 million.

7. U of Maryland Shore Regional Health plans $350M replacement hospital
Baltimore-based University of Maryland Shore Regional Health filed a certificate of need for a $350 million hospital to replace Shore Medical Center in Easton (Md.)

8. $738M Coney Island Hospital renovation advances
Brooklyn, N.Y.-based NYC Health + Hospitals-Coney Island’s $738 million renovation plan will move forward after receiving a key approval from the state.

9. Maine Medical Center advances $525M expansion project
Portland-based Maine Medical Center is moving forward with the final phase of its $525 million expansion project, a six-story building with 64 inpatient beds.

10. Mayo Clinic invests nearly $800M to expand in Florida, Arizona
In an effort to meet rising patient demand, Mayo Clinic will invest nearly $800 million to expand its campuses in Arizona and Florida.

11. New York health system gets $180M loan for $480M expansion
Utica, N.Y.-based Mohawk Valley Health System secured the last piece of funding to finance its $480 million expansion project.

12. University Health System advances plans for $452M expansion
San Antonio-based University Health System is moving forward with its $452 million hospital expansion, which includes building a 302-bed tower.

13. Essentia Health seeks bonds for $800M campus upgrade
Duluth, Minn.-based Essentia Health is looking to secure $800 million in bonds to fund its campus upgrade.

14. Rural South Carolina hospital fears nearby $325M facility will wipe it out: 5 things to know
The Medical University of South Carolina, based in Charleston, got the greenlight from regulators to build a $325 million hospital in Berkeley County — an approval Orangeburg, S.C.-based Regional Medical Center says will threaten its viability as a rural healthcare provider.

15. JPS Health Network seeks $800M toward $1.2B in campus upgrades
Fort Worth, Texas-based Tarrant County Hospital District, which does business as JPS Health Network, is seeking voter approval for an $800 million bond proposal that would fund more than $1.2 billion in hospital upgrades.


Georgia approves $1.5B Children’s Healthcare of Atlanta hospital: 3 notes


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Georgia approved Children’s Healthcare of Atlanta’s certificate-of-need application to replace the 325-bed children’s hospital in Atlanta with a larger one containing 446 beds, also located in Atlanta, according to Georgia Health News.

Here are three things to know:

1. Children’s Healthcare of Atlanta received the approval in early November after filing the CON in June. No other hospital system opposed the construction. The $1.5 billion project is the largest in Georgia’s CON program history. 

2. Children’s Healthcare of Atlanta’s CEO Donna Hyland said in a statement to Georgia Health News the hospital is “pleased that the Department [of Community Health] recognized the long-term value of this new hospital for Georgia’s current and future generations of children. We remain laser-focused on top-quality patient care and operational excellence at all of our facilities as we plan to start construction on the new hospital in early 2020.”

3. To meet growing demand, Children’s Healthcare of Atlanta announced plans for its new hospital in November 2017. The proposal includes an advanced pediatrics center, support buildings, over 20 acres of green space, walking trails, a central energy plant, parking decks and funding for nearby road improvements.




Bon Secours’ hospital proposal in Suffolk gets an edge over Sentara’s expansion request


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In a race to build-out hospital services in the northern part of Suffolk, Bon Secours has received an edge over Sentara.

State health staff, who reviewed expansion requests from both health care systems this summer, recently provided a recommendation of conditional approval for Bon Secours. Its proposal seeks to add 18 in-patient beds and four operating rooms to a facility at the Harbour View campus.

The plan calls for a two-story, 76,000-square-foot facility on the northeast corner of Bon Secours Drive and Harbour Towne Parkway. Bon Secours executives say it’s an effort to better reach western Hampton Roads patients and establish a short-stay, surgically focused hospital.

Within days of each other, Bon Secours and Sentara filed letters to state health officials seeking permission to add or move beds to their respective northern Suffolk campuses.

Bon Secours filed its letter of intent first to apply for a “certificate of public need” to move hospital beds and a few surgery rooms from its Maryview Medical Center in downtown Portsmouth. Days later Sentara submitted a similar request for in-patient beds, operating rooms and a CT scanner at its Sentara Belleharbour campus on Route 17 Bridge Road.

That plan would involve moving beds from Sentara Obici Hospital. Hospital executives have said the shift would meet patients closer to where they are: About 14 patients at Obici each day are coming from Belleharbour, said Dr. Steve Julian, president of Obici, in a June interview.

But the Sentara project “duplicates” services already available in the district, according to the state’s review, and would contribute further to the hospital system’s market dominance. Staff recommended denial of the request, stating it could be “harmful to competition in the region.”

In a statement issued through a spokesman, Julian said Sentara was disappointed with the review but would consider next steps in the state’s certificate of public need process.

“We believe our application offered the most benefit for the least cost in a hospital-ready building already under construction,” Julian said in the statement.

The competing mini medical center proposals demonstrate how hospital systems vie for turf – and how the state tries to weigh those requests in the balance of keeping health care costs reasonable for patients.

The state health commissioner will render a final decision on the projects later this year.

Two letters of opposition against the Sentara project appear to have factored into the staff’s preference for the Bon Secours plan.

Dr. Joseph Verdirame, former president of the medical staff at Obici, wrote that, since acquiring Obici, Sentara has migrated many resources away from downtown Portsmouth and central Suffolk to Belleharbour and Sentara Norfolk General. He believes those shifts are detrimental to care in central Suffolk.

In another letter, Virginia Slocum, strategic operations planning manager at Chesapeake Regional Healthcare, said Sentara doesn’t have enough competition and that allowing it to spend more on expansion could drive “increases in health care costs” for consumers. 



Pittsburgh council greenlights UPMC’s $400M expansion plan


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Although area residents, union members and community activists spoke out against the project, the Pittsburgh City Council approved Pittsburgh-based UPMC’s proposal for a $400 million expansion, according to a Tribune Review report.

Thirty-seven people spoke in opposition of UPMC’s plan to expand its Mercy complex in Pittsburgh during a discordant meeting July 31 that lasted more than five hours. The critics demanded the hospital giant allow employees to unionize, pay more in wages and accept all patients, including ones without insurance.

Despite objection, the city council approved the project in a 7-2 vote after a councilman negotiated with the hospital giant. In the negotiations, UPMC agreed to provide an addiction clinic, mental health services and job opportunities for minorities as it moves forward with its construction plans.

The $400 million project is part of a $2 billion systemwide expansion UPMC announced last year. Plans for UPMC Mercy hospital call for a vision and rehabilitation hospital that has a specialty research and treatment center for eye ailments.

“We look forward to moving ahead with construction of the UPMC Vision and Rehabilitation Hospital at UPMC Mercy and continuing our work on initiatives to benefit the Uptown and Hill District neighborhoods and residents,” Paul Wood, a UPMC spokesperson told the Tribune Review.