As 2016 approaches, the scheduled openings of a number of large-scale projects – including an extensive outpatient services facility – promise to substantially increase the delivery of various forms of healthcare in the Memphis area, particularly eastern Shelby County.
In fact, the current growth trend is expected to continue as hospitals look at the Affordable Care Act and how it will affect their operations and efficiencies.
According to Bret Perisho, vice president of finance and chief business development officer for Regional One Health, construction on its 110,000-square-foot, outpatient services building on its east campus at 6555 Quince Road is almost complete. The five-story building has been under renovation this year to accommodate a women’s reproductive clinic, a physical rehabilitation center, a multi-specialty and primary care clinic, an outpatient pharmacy and a comprehensive imaging center.
“Our goal for the east campus facility is comprehensive integrated care,” Perisho said. “We want individuals to have an efficient patient experience. This campus will provide a full range of specialists who will take care of a variety of specialties. For instance, we will have a cardiologist, endocrinologist, urologist and an internist on staff. Some of these physicians will rotate between our downtown and east campus locations.”
Currently, the women’s reproductive clinic, which includes urogynecological services, the outpatient rehab center and multi-specialty clinic are open for patient care. According to Perisho, the front entrance and canopy is scheduled to open this month. The imaging center is expected to open in January once the first floor renovation is complete, which is the last phase of the project.
Once complete, Regional One will have operations on the first, second and fifth floors. The building has been renovated to accommodate 50,000 square feet for medical space and 60,000 square feet for office space.
Perisho estimates that the total project’s renovation cost will be $10 million to $12 million upon completion.
In addition, a certificate of need has been filed for a 20,000-square-foot, one-story emergency department next door to the Regional One outpatient services building. A hearing is scheduled this month, and if approved by the state, Baptist Memorial Health Care Corporation and Regional One Health will undergo a joint venture to construct and operate a co-branded, free-standing emergency department on four acres of the property.
“We feel that there is a need for this type of service in the southeast portion of the county,” Perisho said. “It will be easily accessible from the freeway, and patients can drive to the location from anywhere in the county in about 20 minutes.
Patients will be able to walk over to the east campus to continue outpatient treatment.”
Perisho said the site is ready for construction, and if the certificate of need is approved this month, construction could begin quickly.
Construction is expected to be complete in April 2016 on Crestwyn Behavioral Health, a 60-bed, 61,000-square-foot psychiatric hospital in Germantown.
The one-story hospital is a joint venture between Nashville-based Acadia Healthcare, which owns and operates Delta Medical Center; Baptist Memorial Health Care Corporation and St. Francis Hospital. Crestwyn will offer inpatient mental health services, including adolescent, adult, addiction and geropsych programs. Acadia will manage the day-to-day operations.
“There are not any behavioral services like this offered in this part of the county, “ said Bill Patterson, interim chief executive officer of Delta Medical Center and project coordinator for Crestwyn Behavioral Health. “Lakeside, Delta Medical Center and St. Francis are operating at capacity, and we felt there was a need for a free-standing location that offers additional behavioral services.”
Methodist Le Bonheur Healthcare has many expansion projects in the pipeline throughout the Mid-South. A 161,000-square-foot renovation to the UTMG building, which will accommodate West Cancer Center in Germantown, is almost complete, according to Dave Rosenbaum, vice president of facilities management for Methodist Le Bonheur Healthcare. Most operations are housed inside the building now with additional services from The West Clinic moving in November. The building is expected to be fully operational at the end of the month.
In addition, renovations to the entrance and lobby of Methodist North Hospital will be completed by the end of the month. Construction is underway to expand the emergency department at Methodist South Hospital from 9,950 square feet to 22,750 square feet. Construction is expected to be complete by the end of next year. According to Rosenbaum, construction will begin in the first quarter of 2016 to renovate the intensive care unit at Methodist South Hospital.
“These hospitals haven’t been renovated in certain areas since they were built 30 years ago,” Rosenbaum said. “We are bringing them up to current standards so it is a better environment for patients, staff and families.”
Also, Methodist plans to move various administrative functions into Crosstown Concourse in Midtown, which is scheduled to open the first quarter of 2017.
“We are working with our designer now and are selecting contractors to work on the space,” Rosenbaum said. “We have employees located in third-party lease properties throughout various parts of the city, and they will move to Crosstown when it’s complete.”
Methodist will occupy 115,000 square feet inside Crosstown. Also, other medical and wellness-related tenants will occupy over 620,000 square feet, including the Church Health Center, which will consolidate its current 14 buildings under one roof and will occupy 150,000 square feet of space, according to Todd Richardson, co-leader of Crosstown Concourse.“The primary goal for us now is finishing the shell and core where tenants can start building their internal space in January,” Richardson said. “So far, we are on schedule to do that.”
Richardson mentioned that tenants will have the entire year to wrap up internal renovations and should be able to move on schedule in the first quarter of 2017. Out of 1.1 million square feet, only 60,000 square feet is vacant. Richardson’s goal is to lease the remaining space next year.
As 2016 approaches, several Mid-South hospitals and medical-related entities are looking at what’s next on the horizon for building development. According to Kelly Truitt, executive vice president of CB Richard Ellis Memphis, a local commercial real estate agency, the Affordable Healthcare Act will be a factor in how hospitals look at expansion.
“I think there was some delay in strategic planning for future development to see if the Affordable Care Act (ACA) would stay or if any changes would be made,” Truitt said. “Now that we know the law is here to stay, I think we will see some planning focused on efficiencies. Also, hospitals are going to want to be more accessible to patients and how they deliver services. We are already seeing that with all of the medical expansion out east. I think we will see quieter growth in 2016 than we saw in 2014 or 2015 as hospitals get their strategic planning together.”
Truitt’s prediction aligns with Methodist’s development strategy on future expansion. According to Rosenbaum, the ACA is being considered in the hospital system’s strategic plan for future development.
“We are currently doing our strategic planning for the next five years and are keeping the Affordable Care Act in mind,” Rosenbaum said. “Our goal through 2020 is to provide accessible facilities in neighborhoods so better healthcare can be provided. We want to have the right facility to give the patient what they need. We want to bring the healthcare to them.”
RELATED LINKS:
Regional One Health, www.regiononehealth.org
Methodist Le Bonheur Healthcare, www.methodisthealth.org
Crosstown Concourse, www.crosstownconcourse.com