Project Overview
Medicus Capital, in conjunction with our service partner Navigant Consulting, helped Kishwaukee Health System determine the best long-term facility solution to realize the system’s vision to become a regional healthcare provider. An essential component of this project was a medical office building in a joint venture ownership arrangement between the hospital and Medicus Capital.
The MOB is a 40,000 square foot, $8 million facility that features offices for cardiology, a sleep lab and neuro-diagnostic institute, bariatric medicine, physician timeshare suite, hospital data center, hospital administrative offices and a coffee shop.
Located in a rural yet fast-growing area 60 miles west of Chicago, the MOB is part of the 100-bed, $102 million replacement hospital project on a greenfield site. The MOB opened simultaneously with the new hospital in October 2007 and is ninety-six percent leased.
Project Services
- Strategic market planning
- Strategic facility and master planning
- Delivery system planning
- Operations assessment
- Technology assessment/planning
- Financial analysis/capital planning
- Program/project management
- Development
- Ownership Structuring
- Financing Procurement
- Marketing and leasing
- Off-balance sheet / Off-credit financing / ownership of MOB
- Joint venture structuring
Challenges
- Capital constraints created by new hospital facility required innovative, off-balance sheet structure to develop medical office building
- Integrating MOB design with higher-end image of new hospital at cost supported by low market rents in rural market
- Integrating hospital data center in MOB
- Medical staff development plan implemented in later phase of project development
Results
- Medicus developed the medical office building without capital funding or credit support from the hospital
- MOB design and construction successfully integrated with hospital design
- Hospital data center located in lower level of building
- Joint venture ownership arrangement between Medicus Capital and hospital
- Recruitment of new physicians to community and as tenants to MOB