NexCore Group partnered with Providence Holy Family Hospital to develop a new four-story, 104,200 SF medical complex consisting of a three-story medical office building (MOB) and the addition of a hospital-owned surgery/oncology center. To accommodate the growing need for on-campus physician office space on a tight campus, the MOB was built on top of the surgery/oncology addition and linked to the hospital at the outpatient entry for convenient access to outpatient services in one central location.
The hospital wanted to expand the surgery center while maintaining ownership (a requirement to meet local code, ASC licensing standards, and JAHCO accreditation), but budget constraints limited its options. NexCore crafted a flexible ownership structure and creative development solutions to reach all strategic goals. NexCore included the expansion of the surgery center in the project budget, achieving economies of scale and kept the center under hospital ownership.
The MOB was leased in a physician office market that was extremely cost conscious and competitive, due to the community’s payer mix. By stacking the MOB on top of the hospital’s expanded first floor, NexCore was able to reduce the MOB rental rate to meet the Spokane market. NexCore used these rates to attract the right physicians to the campus, which has strengthened the hospital’s strategic position in a highly competitive market.
“We’d worked with consultants before that were out of the area and found that very challenging. That was not the case with NexCore Group. It was really like they were a local group in terms of their availability, their timeliness, and their frequent site visits. This project came in on time and under budget, and there were actually monies returned to the hospital.”