Project Overview
In 2004, Rush University Medical Center (RUMC) announced plans for the most comprehensive capital program in its history. The $1 billion "Rush transformation" encompasses plans to invest in new technology, build new facilities and improve patient care processes, while at the same time reorienting the entire physical campus around patients and their families. The campus has been designated by the City of Chicago as its first "Green Campus".
The first phase of this transformation includes a 220,000 sq. ft. Orthopedic Ambulatory Building (OAB) / Center of Excellence that is jointly owned by RUMC and Midwest Orthopaedics at Rush (MOR) under an air rights lease structure. The OAB opened in fall 2009 and is the first healthcare facility in Chicago to achieve Gold LEED® Certification. Sustainable design features include a green roof that covers nearly 50% of the roof to reduce urban heat and run-off, dual flush toilets to reduce potable water needs, enhanced building commissioning, significantly increased ventilation to improve indoor air quality, and use of materials that maximized recycled content and minimized VOC's. Over 90% of construction and demolition waste was also diverted from landfills.
The interior layout of MOR's clinical space was designed to improve the patient experience by maximizing daylight and provide dramatic views of downtown Chicago's skyline. The eastern façade includes a distinctive curtain wall designed in tandem with the new hospital across the street to form a gateway to the RUSH campus.
Project Services
- Development Advisory
- Program / Project Management
- Market and Financial Feasibility
- Ownership Structuring
- Financing Procurement
- Master Site Planning
- Zoning / Entitlement Coordination
- Operations Planning
- Leasing
Challenges
- Satisfying the diverse needs of dual owners.
- Consolidated 10 MOR offices to improve financial performance and operational efficiency.
- Determining the right mix of services to include that achieve a reasonable ROI.
- Complex ownership structure and project accounting requirements.
- Mitigation financing / interest rate risk.
- Logistical coordination and integration with campus modernization program, including utility / supply chain tunnel, below grade central dock, new central utility plant, and bridge connector to re-configured parking structure.
- Complex entitlement process - part of Planned Development, the Illinois Medical District and TIF District.
- Incorporating minority participation.
- Integrating cost effective sustainable design concepts.
Results
- Planning incorporated functional and design requirements of both owners within tight budgetary constraints.
- Consolidation of offices and mix of services in OAB exceeded MOR projected operational savings and ROI.
- Structured ownership documents to achieve MOR, hospital and lender requirements, legal compliance and significant tax savings for MOR.
- Designed and managed complex cost accounting system.
- Secured 24-month rate lock / forward commitment to minimize interest rate / financing risks.
- OAB, parking, parking connector, central plant, and tunnels designed and constructed in coordination with campus master plan.
- Secured entitlements to maintain project schedule.
- Exceeded minority participation targets / goals.
- Achieved LEED® Gold Certification within budget and with proven payback in utility savings.