NEW YORK CITY-Working to keep up with changing demands, New York-Presbyterian Hospital is planning to build a new ambulatory care center, as well as a takeover of New York Downtown Hospital, according to Crain's New York Business. The projects—valued collectively at over $1 billion—were approved Thursday by state health regulators, according to the paper.
A spokesperson for New York Presbyterian declined to comment. The hospital is moving ambulatory care services out of its existing buildings. It plans to build an ambulatory care center at 1283 York Ave., across the street from New York-Presbyterian-New York Weill Cornell Center Campus at 525 E. 68th St. The new building will house surgery, primary care and infusion therapy services, radiology, MRI, PET scanner and linear accelerator services, according to Crain's. The project will cost $895.5 million, the business publication reports.
"Here's a project that certainly is in the forefront of what is happening in ambulatory care," says Jeffrey Kraut, senior vice president for strategy at North Shore-LIJ, speaking as a member of the state committee that approved New York-Presbyterian's projects, in Crain's.
NYP's plan follows in the footsteps of Montefiore Medical Center and the North Shore-LIJ Health System in building ambulatory centers. These one-stop facilities provide patients with preventative and specialty care, as well as other services previously delivered at the hospital, Crain's reports.
The state's Public Health and Health Planning Council, a body that regulates large construction projects by New York State hospitals, will vote on New York-Presbyterian's projects on April 11. New York-Presbyterian plans to pay for the ambulatory center by fundraising $395.5 million of the cost and taking on a $500 million mortgage at 6% interest for a 25-year term, according to Crain's. Construction is set to start on Aug. 1, 2014.
A second project for New York-Presbyterian is the renovation of 10 existing inpatient units located at its Milstein Building on the Columbia University campus. That project will cost $111.4 million, funded through donations. Construction is scheduled to begin in December.
The hospital's emergency department at Columbia is getting a $74 million overhaul, to be financed through fundraising. When finished, that department will have 66 acute care treatment areas, up from 45, and 22 rapid medical evaluation areas, up from 10, Crain's reports. Construction will finish by April 1, 2017.
New York-Presbyterian disclosed in its state filings that it earned a profit of $159 million in the first 10 months of 2012. Its tab for the three construction projects is about $1.08 billion.
The state health planning committee also gave preliminary approval to New York-Presbyterian's proposed takeover of New York Downtown Hospital, Crain's says. According to the hospital's certificate of need application, New York Downtown lost $12.5 million in the first 11 months of 2012. New York-Presbyterian's application disclosed that to improve operations, Crain's reports, New York Downtown management has reduced head count.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
