Project Overview
In a large metropolitan market, being first to market is often critical. Medicus helped Parma Community General Hospital, the last major independent hospital in the Cleveland area, conduct a feasibility and financial viability study to develop an ambulatory surgery center and medical office building. Following board approval, Medicus developed a 20,000 square foot surgery center and a 40,000 square foot medical office building on a site adjacent to the main campus, and integrated them by building a climate-controlled connector. Parking was also added to ease congestion. To fund the project, Medicus recommended an off-balance sheet structure that provided Parma with the lowest cost of capital and enabled the hospital to complete construction in 10 months.
Project Services
- Strategic market planning
- Strategic facility and master planning
- Operations assessment
- Market and financial feasibility study
- Financial advisory
- Site analysis and selection
- Ownership and financial modeling
- Design/build development
- Physician marketing and leasing
Challenges
- Site topography limited campus planning options
- Medical office building needed to be pre-leased to targeted list of physicians
- Need for rapid deployment
- Hospital’s capital needs dictated an off-balance sheet structure for the project
Results
- Connected ambulatory surgery center and medical office building to existing hospital campus despite challenging topography
- Secured commitment from large orthopedic group to serve as anchor tenant of MOB
- Completed project in 10 months to achieve hospital’s goal to be first to market
- Evaluated all options and recommended an optimal financing and ownership structure that satisfied Parma’s strategic, financial and operational objectives