Freestanding ED

Achieving more with less on the replacement campus of St. Anthony North Hospital in Westminster, CO.

St. Anthony North Hospital (SAN), a member of Centura Health, selected NexCore Group to develop, own, lease and manage its newest outpatient facility—the 48,000 SF Medical Pavilion I housing a freestanding emergency department, other hospital outpatient services and independent physician practices. NexCore initiated the project during the 2008 economic downturn, working with limited capital to complete the project 2 years earlier than expected. NexCore leveraged creative financial solutions, innovative design plans and visionary recruitment for the July 2012 Medical Pavilion I, paving the way for other key facilities on the 35-acre campus.

“NexCore’s ability to coordinate and negotiate successfully with City staff on entitlement issues and, at the same time, be sensitive to the political pressure that the neighbors could apply, was instrumental to the financial and operational success of our project.”

Deborah Horne

Vice President Business Development, St. Anthony North Hospital

A Foundation for the Future

In 2008, Centura Health approached NexCore to construct the first of several facilities on the 35-acre St. Anthony North greenfield campus, located on the southwest corner of the I-25/144th Avenue interchange in Westminster, CO. Medical Pavilion I and NexCore needed to achieve several strategic goals:

Lay the groundwork for the future St. Anthony North hospital, a $177 million, 92-bed facility scheduled for completion in 2015.
Serve as the entryway for all emergency services in the future hospital.
Supply comprehensive ambulatory and emergency services to the underserved residents of North Metro Denver (including the communities of Westminster, Thornton, Northglenn, Broomfield, Erie, Brighton and the surrounding areas).
Recruit a complimentary mix of tenants to bring St. Anthony a competitive advantage.

Facing Economic Uncertainty

Design and master planning for the project was initiated during—and highly influenced by—the 2008 economic downturn, leaving Centura and SAN pressed for capital. Compounding this concern, the future construction of the acute care portion of the campus was starting to look uncertain; NexCore was challenged with attracting specialists to an unfinished campus. The initial response from physicians was understandably cautious.

Entitlements and master planning would also prove tricky as the City of Westminster wanted to push the building closer to the street, affecting the plan for the remainder of the campus. Finally, NexCore saw a need to increase the size of the facility to achieve economies of scale and offer lower prices to tenants and patients.

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"It’s been such a pleasure to work with NexCore because of their shared commitment to our community. They have been tremendously helpful with all aspects of project development and physician recruitment."

Deborah Horne

Vice President Business Development, St. Anthony North Hospital

Step-by-Step Success

NexCore provided comprehensive strategic planning services to confirm the right mix of specialists, define the service area and analyze relevant demographic data at the block group level. NexCore also provided master facility and master site planning advisory services for the project.

Financing: To address capital constraints, NexCore funded the project and expanded the facility to achieve an economy of scale that was cost-effective not only for SAN but for tenants and patients as well.
Recruitment: NexCore painted a vision of the future for the campus and in doing so, recruited physicians who gave Centura a strong competitive advantage in their market. NexCore’s physician recruitment also supported the hospital’s ongoing business plan.
Master site planning: NexCore’s master site planning recommendations were instrumental in reducing the cost of both the first and second phase of development, including the forthcoming new hospital. NexCore recommended the first phase development plan include vertical development, placing the medical office portion of the building above the emergency department and diagnostic imaging, both of which lived on the 1st floor for easy access. NexCore also recommended the building be designed to “bolt-on” to the new hospital rather than remain a stand-alone facility, reducing costs and avoiding duplication.

Measurable Gain

Medical Pavilion I now offers convenient access to a broad array of hospital services to over 220,000 residents in the area, including:

24-hour emergency department
Full-service imaging center (MRI, CT, and general radiology)
Women’s breast imaging center
Gastrointestinal lab and surgery center
Clinic
Laboratory
Heliport (Flight for Life® emergency air transport).

Hospital-employed primary care physicians and specialty physicians—including cardiologists, neurologists, and orthopedists—provide a variety of additional services in the hospital clinic. Since the facility opened, over 30,000 patients have walked through the doors, using both the freestanding ED and the non-emergency services.

NexCore demonstrated the value of its expertise in integrating the dual roles of ambulatory planning and facility development implementation on the Medical Pavilion I project. This reduced the cost of the project, allowing NexCore to lower physicians’ rent, and accelerate the development schedule for the hospital component of the campus plan.

Design efficiencies achieved by integrating two buildings into one resulted in 16% reduction in construction costs. NexCore’s creative financial solutions achieved speed-to-market, allowing St. Anthony’s to proceed with the project 2 years ahead of schedule.