Tag Archives: banner health

Alter Group's Arizona Health and Technology Park, AZRE Magazine May/June 2011

Mixed Use Medical Buildings in Arizona

Mixed Use Medical Buildings

Banner Health Systems’ 60-acre Gateway campus in Gilbert is buzzing with activity. The 120,000 SF MD Anderson Cancer Center is rising from the construction dust, a new mixed use medical office building was just completed, and an older office complex is being renovated and expanded.

The same healthcare giant just announced plans to build the Banner Health Center, housing doctors offices plus a variety of medical and lab services, on 11 acres in the Wells Retail Center in Maricopa.

And in one of the most unusual mixed use medical pairings, Arizona’s most prolific retail developer, Westcor (owned by Macerich), is teaming up with venerable healthcare provider John C. Lincoln to plot out 84 acres in northwest Phoenix for a community hospital/medical office/retail center/auto mall.

Healthcare-anchored, mixed use developments seem to be the current real estate trend. There are dozens around the state. Some are hospital centered, and others, such as the proposed Maricopa project and the 50-acre Arizona Health & Technology Park in Mesa, are designed to combine medically focused businesses and other community services.

The Mesa project’s plans include space for a dental clinic to serve the nearby Arizona School of Dentistry, other specialty outpatient service facilities, offices, and biotech research and development facilities.

Hamilton Espinosa, national healthcare specialist for DPR Construction, says clustering a variety of medical uses and complementary services is a national trend, not just a local one.

New hospitals are seldom designed as stand-alones. Campuses are master planned to grow as the surrounding community does, with room for expansion of inpatient beds, outpatient services and other ancillary services from specialized clinics to doctors’ offices to pharmacies and even restaurants and hotels.

It’s a natural progression, Espinosa says. Evolving medical technology has transformed many treatments that previously required a hospital stay into outpatient procedures. Add to the mix the need to rein in healthcare costs and — in Arizona, at least — a bounty of land.

Purchasing and master planning a big chunk of property, but building components as population and changing medical needs progress, makes sense in a cost-conscious and rapidly changing environment, Espinosa says.

He compares the mega-campus evolution to Arizona Department of Transportation (ADOT) planning of the state’s freeway needs.

“Healthcare providers have to be much more judicious in capital spending. There is more apprehension,” Espinosa says. “Like ADOT, they build what they can afford now and add later when they can afford it and as the census dictates (demand).”

Mixed-Use Medical,  AZRE Magazine May/June 2011

But far from being something new, master planning a campus that blends medical and other business services is old hat to Plaza Companies, says Sharon Harper, president of the Arizona-based real estate company.

Plaza pioneered the first mixed use, medically-anchored community in Peoria in 1982, Harper says. Plaza del Rio’s 185-acre campus was originally designed to meet all the needs of an active senior living complex and grew over time to also meet the needs of the thousands of employees who work in the ever-expanding community, Harper says.

It includes senior residences, skilled nursing facilities, dozens of doctors and dentists offices, several specialty hospitals, clinics and other outpatient medical centers, condos, apartments, shops, restaurants, schools, offices, science and research facilities. But there’s not a traditional inpatient hospital in the mix.

Next on the drawing board, according to Harper, are single-family homes.

Plaza del Rio is a hugely successful one-of-a-kind model of a medically-anchored, mixed use development, but Harper says big hospital-anchored campuses and small neighborhood-focused complexes are essential to the future of healthcare delivery.

Jason Meszaros, vice president for Irgens Healthcare Development Partners, which just completed Mercy Medical Commons, a medical office project adjacent to the Mercy Gilbert Medical Center campus, agrees that there is no one-size-fits-all solution. Arizona is relatively saturated with hospital beds, Meszaros says.

“The trend is we are done building hospitals for a while,” he adds.

The Desire For Mixed Use Medical Buildings

The focus for the foreseeable future will be filling out space on existing campuses with other services that make a hospital more competitive as a destination for patients, as well as for doctors and surgeons who want on-campus offices to cut daily commute times from inpatient to outpatient visits, he says.

“A hospital becomes an anchor for all types of real estate needs,” Meszaros says. “You most likely have hospitality needs, places for a family to stay. And you have lots of people who work there and in offices, and that drives retail. You need some place to eat lunch.”

But a bounty of available land on hospital campuses is only one motivation for mixing up healthcare real estate and other uses.

The changing needs and desires of aging baby boomers and new healthcare reform measures are also factors driving how and where medical services are provided now and into the future, says John Driscoll, president of Alter+Care, the healthcare division of the Alter Group. The company is developing the Arizona Health & Technology Park in Mesa.

“Boomers have been market changers over the years,” Driscoll says. “And the first boomers will be retiring this year.”

Lifestyle demands and the bubble of people moving to Medicare during the next two

Mixed-Use Medical,  AZRE Magazine May/June 2011

decades will require medical services that are more “competitive, attractive and affordable,” he says. And another 30 million insured people, many on Medicaid-like systems, means cost-effective real estate solutions will be key.

“There is no question in the future that healthcare providers will have to be more efficient,” Driscoll says.

Rather than a single model for healthcare real estate in the foreseeable future, there are several scenarios likely to emerge simultaneously based on a community’s needs and assets, he continues.

The giant, hospital-anchored campuses make sense for regional medical services, but the future focus will emphasize bringing healthcare closer and making it more convenient to those who use it on a regular basis.

Driscoll envisions smaller neighborhood-based destinations with a range of services such as medically-based fitness centers, post-surgery rehabilitation facilities, sports performance centers — “health villages with different kinds of services for people who are sick and to keep people well.”

“We’re seeing more co-mingling of medical and wellness services,” he says.

Future development also will be real estate-driven and may include adapting empty big boxes retailers to house medical services, he adds. Picture the shell of a former Borders Books or Ultimate Electronics housing a host of medical providers, such as acute care clinics, labs and medical imaging services.

Randy McGrane, managing director for Ensemble Real Estate, has already imagined that as the future of outpatient healthcare delivery. He adds that off-campus medical services are a bigger trend than the expansive hospital-centered developments.

The ratio of inpatient to outpatient medical services is about 60/40 now, McGrane says, but he predicts the numbers will reverse within 10 years.

Communities want medical services in their own neighborhoods, and retail centers are suffering from curtailed discretionary spending during the recession, he says. So, the empty retail anchor spaces are obvious and cost-effective solutions for both real estate segments.

In smaller neighborhood strip centers abandoned by a supermarket anchor, adding a clinic or urgent care facility could change the whole dynamic of the center. It could spawn new medical and/or retail services such as pharmacies or health-food shops, and the same type of services — dry cleaners, casual eateries and coffee shops, for example — that cluster around a supermarket to make a neighborhood commercial center a one-stop convenience for employees and customers, McGrane says.

And adding medical outpatient facilities to a big box-laden power center can re-energize flagging retail, bringing in new foot traffic and boosting business for all tenants, he says.

So who are the visionaries on top of the trends in changing healthcare delivery systems? Savvy industry giants already are planning multi-faceted networks that add satellite services in diverse locations, as well as boosting hospital campuses with a variety of services to remain competitive, according to the local industry experts.

The major players plotting out Arizona’s healthcare delivery systems of the future are the top hospital names, such as Scottsdale Healthcare, Banner Health, Catholic Healthcare West, John C. Lincoln and Abrazo Health Care, according to industry experts.

And the on-the-ball real estate developers, designers and construction companies have healthcare divisions in place ready to make it happen.

“There is growth in healthcare and in more sophisticated delivery of healthcare services,” Harper of Plaza Companies says. “It’s an exciting industry.

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www.altergroup.com
www.dpr.com
www.ensemble-llc.com
www.irgensllc.com
www.theplazaco.com

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AZRE Magazine May/June 2011

Good Samaritan Hospital - AZ Business Magazine Mar/Apr 2011

Arizona’s Health Care Industry Has Flourished From Cottages To World-Class Facilities

A Century of Care

From cottages to world-class facilities, Arizona’s health care industry has flourished

Mayo Clinic Hospital - AZ Business Magazine Mar/Apr 2011 In the nearly 100 years since Arizona became a state, the health care sector has become a powerful economic force.

According to a study by Arizona State University’s L. William Seidman Research Institute, Arizona’s hospital community alone employs more than 80,000 people and contributes $11.5 billion to the gross state product. Indirectly, hospitals create about 120,000 additional jobs, more than the combined populations of Coconino, Graham and Santa Cruz counties.

Sisters of Mercy

It all started some 17 years before statehood in January 1895, when the Sisters of Mercy had collected enough money to rent a six-bedroom cottage at Fourth and Polk streets in Downtown Phoenix. Each room was equipped with two beds for TB patients, and thus was born St. Joseph’s Sanitarium, predecessor of St. Joseph’s Hospital and Medical Center and the first hospital in Phoenix. Downtown Phoenix 1900s - AZ Business Magazine Mar/Apr 2011

In the mid-1940s, the nuns purchased 10 acres at Third Avenue and Thomas Road, which was part of an old dairy farm. Today, St. Joseph’s is a 670-bed, not-for-profit hospital that is one of the cornerstones of the state’s health care industry.

A second giant in health care, Good Samaritan Hospital of Phoenix, launched its first facility in an apartment building at Third Street near Van Buren in 1911. Initially incorporated as the Arizona Deaconess Hospital and Home, it opened with 15 beds.

One-hundred years later, Banner Good Samaritan Medical Center in Downtown Phoenix is the flagship of Banner Health, with more than 662 licensed patient care beds. Banner Good Samaritan employs more than 4,200 health care professionals and support staff. Nearly 1,700 physicians representing more than 50 specialties work with Banner Good Samaritan staff to care for more than 43,000 inpatients a year.

Another early entry in the health care scene was the State Asylum for the Insane, which was rebuilt after a fire in 1911. In 1924, the asylum was informally renamed Arizona State Hospital.

Established in 1943 as a community hospital, Tucson Medical Center is among the 300 largest hospitals in the country. It is licensed for 650 adult and skilled nursing beds, and serves more than 30,000 inpatients and 122,000 outpatients a year.

St. Luke Hospital - AZ Business Magazine Mar/Apr 2011In 1971, University Medical Center — a private, nonprofit hospital located at the Arizona Health Sciences Center adjacent to the University of Arizona in Tucson — was established. UMC is Arizona’s only academic medical center, and earlier this year it became an international focal point for neurosurgery and trauma care after a gunman shot and wounded U.S. Rep. Gabrielle Giffords (D-Ariz.) and killed six people.

In Northern Arizona, the Flagstaff Medical Center, a not-for-profit hospital, was founded in 1936. A part of the Northern Arizona Healthcare family, it has some 270 beds and its medical staff includes about 200 physicians. Among its specialties are cancer, heart and sports medicine.

Health care continues to be a concern on Indian reservations throughout Arizona, particularly in some of the remote regions. A relatively new program, the American Indian Research Center for Health is designed to improve the health status of Native Americans and increase the number of Native American scientists and health professionals engaged in research. Classes for the student-training component of the program are held at the University of Arizona.

Read more…

health care leadership awards - AZ Business Magazine Mar/Apr 2011

HCLA 2011- Institutional Or Education Program

Honoree: Home-Based Care Program, Cigna Medical Group

IHome-based Care Program, CIGNA Medical Group, 2011 Health Care Leadership Awardsn response to investigations concerning why some patients under a Medicare Advantage plan weren’t returning to their doctors, Cigna Medical Group established the Home-Based Care Program in 2004.

The program was created to assist these home-bound patients and to treat those who had recently experienced a severe health event and were about to face gaps in care.

The program has a team of physicians, physician assistants, registered nurses, practical nurses and social workers who visit patients in their homes to provide medical care. They monitor vital signs, provide treatment, review prescriptions, help patients take medications correctly, evaluate nutritional needs and coordinate with others to arrange community services.These interactions are recorded in an electronic health record and are shared with the patient’s primary care physician.

Patients in the program are maintaining, and in some cases improving, their health. There has been a 30 percent decrease in acute hospital admissions since the program began, due in large part to an improved ability to prevent life-threatening or severe changes in home-bound patients’ conditions.

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Mark Smith, System Director of Simulation/Innovation, Banner HealthFinalist: Mark Smith, M.D., System Director of Simulation/Innovation, Banner Health

In 2005, Dr. Mark Smith conceptualized and developed the first of Banner Health’s simulation centers at Banner Good Samaritan Medical Center. He currently serves as the system director of simulation and innovation for Banner.

Banner Health, one of the nation’s largest not-for-profit health systems, hopes to reduce medical errors and improve patient care by using high-tech mannequins that help simulate a variety of medical conditions and emergencies in its educational training centers. In 2009, Banner opened a second medical simulation training center in Mesa with more than 70 mannequins and a full-size emergency department, intensive care unit, pediatric/neonatal ICU and operating room.

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Finalist: Water Watchers Program, Phoenix Children’s Hospital

Water Watchers Program, Phoenix Children's HospitalArizona has the country’s second-highest number of child drownings. This devastating statistic is why the Injury Prevention Center at Phoenix Children’s Hospital created the Water Watchers program.
Water Watchers raises awareness about water safety, provides information about child drowning risks and teaches drowning prevention through a variety of outreach events throughout the year.

Water Watchers was co-founded by Druann Letter and Carol Achs, the mother and grandmother of Weston Letter, who drowned in 1998 at the age of three. The program has been recognized by the National Drowning Prevention Alliance, as well as the National Water Safety Congress.

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Surprise Medical Plaza, AZRE July/August 2011

Medical: Surprise Medical Plaza At The City


SURPRISE MEDICAL PLAZA AT THE CITY

Developer: Ensemble DevMan of Arizona
General contractor: TBD
Architect: Matthew Budge Associates Architects
Location:
Statler Blvd. & Litchfield Rd., Surprise
Size: 35,400 SF

Construction on the medical office building is slated to begin December 2010 and finish in July 2011. The project will be anchored by a Banner Health Urgent Care Center and is 70% pre-leased. Brokerage firm is Ensemble DevMan.

AZRE January/February 2011

Healthcare construction

Healthcare Facilities: Just What The Doctor Ordered

Construction of healthcare facilities in Arizona boldly forged ahead in 2010, despite an economy that refuses to rebound and uncertainty over the impact of federal healthcare reform.

Officials figure that Arizona’s population will continue to grow and age, and because of the new federal law more people will have access to health insurance, which indicates a greater need for healthcare facilities.

Major players in the healthcare field from the Metro Phoenix area to outlying rural communities are investing in the future in a big way. Arizona healthcare facility projects with a total estimated cost of nearly $1B are finished, nearing completion or in the planning stage.

Banner Health has four projects totaling almost $300M: Banner Ironwood in Queen Creek, Banner Good Samaritan in Phoenix (expansion), and the Banner MD Anderson Cancer Center and Banner Gateway Medical Office II in Gilbert.

“You might say we’re in the business of being futurists,” says Peter Fine, president and CEO of Banner Health. “The risk of investments is not for the faint of heart.”

Technology a Driving Force in Healthcare Facilities

There is concern regarding healthcare reform that focuses mainly on how reimbursements will occur. Federal officials are pushing for more accountability in patient care outcomes, tying reimbursements to those efforts. As a result, information technology is becoming a key factor.

Mark Peterson of SmithGroup, a design and engineering firm, is working with clients to create healthcare facilities that play a direct role in patient care. It’s called evidence-based design.

“We’re providing clients with building solutions that support their patient-care mission and can be proven that there is a direct correlation between building design and improved patient outcomes,” Peterson says.

While the need for healthcare facilities most certainly is growing, some say the bad economy is resulting in a slight decrease in the utilization of hospitals. Experts say people are going to their doctor more and using hospitals less than they did a few years ago, especially those who have lost their jobs and may not have insurance coverage for an expensive hospital stay.

Another trend, experts say, is an industry focus on the word “healthy,” rather than the word “sick.”

“With a focus on healthy, what does this landscape look like?” queries MaryAnn Guera, CEO of BioAccel, a nonprofit organization that drives economic development through commercialization of late-stage basic and applied research in the life sciences. “Health or sickness? The look of the buildings we need will change around that.”

Metro, Rural Areas See Activity

Jason Meszaros, vice president of Irgens Development Partners, says healthcare projects in the Phoenix area represent the only type of development “that has any legs.”

Compared to previous years, construction has fallen off somewhat, some medical condos are back on the market, and there is still a desire for medical office space on or near medical campuses, he says.

For Irgens, which is building a 51,000 SF medical office facility in Gilbert, and for most others in the field, activity in 2011 should be fairly moderate, Meszaros says. Healthcare reform, the economy and population growth are all factors.

“The healthcare reform act throws a little bit of uncertainty into it,” he says. “People are a little apprehensive to make a long-term commitment.”

Healthcare facilitiesEven so, there is no shortage of building activity in the healthcare field, not just in the metropolitan areas, but in rural parts of the state, as well. Money for these ongoing projects comes from various sources, including tax-exempt bonds, operating reserves, philanthropy and the federal government.

For example, Phoenix Children’s Hospital embarked on a $588M expansion project in 2008, which will be 90% completed by the end of 2010. Officials expect to have the ambulatory clinics open by January, and hope to occupy the 11-story patient tower by June, increasing the number of beds to 626 from 345.

Bob Meyer, Phoenix Children’s Hospital CEO, says the project is funded primarily with $320M in tax-exempt bonds, plus operating reserves, fundraising and philanthropy.

There were 900,000 children in Maricopa County in 2003 when Phoenix Children’s began planning for expansion. That number has increased to 1M, and by 2030 as many as 1.7M kids will be living in the Phoenix Metro area.

“That’s why we’re building the building,” Meyer says.

At the same time, people are living longer. The population over 80 continues to grow almost exponentially, creating an increase in demand for medical services.

“That’s what has most people in the industry concerned,” Meyer says. “Hopefully there will be magic drugs, but in today’s technology it’s going to be a challenge.”

Nathan Anspach, senior vice president for medical economics at John C. Lincoln Health Network, expects capital budgets to see increasing pressure from information technology investment. Basically, that means less money for hospital construction and more money earmarked for IT improvements.

“IT investments are going to be required as part of the healthcare reform act, and that will impact capital construction,” Anspach says. “Healthcare systems are all looking at IT investments for electronic records and electronic measures like WiFi, and that’s going to cramp the construction budget.”

Recognizing the growing importance of IT, John C. Lincoln is building a $6M data center adjacent to its new administrative headquarters in the North Valley near I-17. The 4,000 SF building is expected to be completed in the first quarter of 2011. Susan Fuchs, media relations specialist, says the new facility will provide “a more secure environment for data management and electronic medical records.”

“It’s the wave of the future,” she says.

An Investment for Arizona’s Future

At St. Joseph’s Hospital and Medical Center, affiliated with Catholic Healthcare West, Bob Campbell, vice president for business development in Arizona, says, “We are looking at making investments in our whole continuum of services, everything from physicians’ offices, outpatient services, joint ventures, hospitals that we have, and health plans that we operate.”

Suzanne Pfister, vice president of external affairs, says CHW is moving toward partnerships, not solely construction projects. She mentions a joint venture with SimonMed, an outpatient medical imaging system.

“Under healthcare reform, we see more of a push toward preventative, lower-level healthcare, less expensive healthcare,” Pfister says. “What we’re looking at is — how can the right patient be in the right place? Maybe that’s not a hospital. Maybe it’s urgent care, or into family practice with an after-hours clinic.”

In partnership with United Surgical Partners, CHW is building an orthopedic surgery hospital at 40th St. just south of Loop 202. The 75,000 SF facility is expected to open next spring.

Other healthcare facilities in the planning stage include a 16,000 SF cardiac catheterization lab at Chandler Regional Medical Center, and a 145,000 SF expansion of the patient tower adding about 100 beds.

“Connecting the dots between construction and healthcare reform is really going to force hospitals to partner more with community physicians and outpatient options,” Pfister says.

Banner Good Samaritan Medical Center launched a $71M expansion of its surgical services department. When completed in 2012, there will be 20 state-of-the-art operating rooms, 76 preoperative and postoperative bays, a new waiting room with technology to keep families apprised during the surgery process, plus other amenities, according to Banner Good Samaritan CEO Larry Volkmar.

In outlying areas, construction is underway at what will be called Florence Hospital at Anthem northwest of Florence, says Gilbert Hospital CEO David Wagner. Completion of the 96,000 SF building, which will include an 18-bed correctional unit, is targeted for next summer.

Other rural projects include the 75,000 SF Marana Health Center for MHC Healthcare, slated for completion in March, and the $4.2M Superstition Mountain Mental Health Center in Apache Junction.

Meanwhile, USDA Rural Development, an arm of the federal Department of Agriculture, has committed $28.6M, including loans, for Arizona healthcare projects this fiscal year, says spokeswoman Dianna Jennings.

Other projects aided with federal funds are: the Pinal Hispanic Council Clinic in Coolidge, Copper Queen Rural Health Clinic in Palominas-Hereford, and the La Paz Regional Hospital in Parker.

Peterson says the economy is having an impact on the way people approach their own healthcare, and that’s having an impact on new hospital construction.

“Private sector clients are moving ahead with strategic plans for future master planning
and how best to position their organizations in urban areas,” Peterson says. “That’s true in Phoenix and Tucson and a little bit in Northern Arizona. It’s all about capturing the market and having the best possible response to healthcare reform and emerging changes to the economy.”

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AZRE Magazine November/December 2010

Most Admired Companies - AZ Business Magazine Sept/Oct 2010

2010 Most Admired Companies Award Winners

Arizona Business Magazine and BestCompaniesAZ are honored to unveil the winners of our inaugural Arizona’s Most Admired Companies Awards.

With 43 winners, we think you’ll agree the awards selection committee has done an outstanding job in determining some of the most admired companies in our state.  Our primary goal in developing this program was to find those organizations that excel in four key areas: workplace culture, leadership excellence, social responsibility and customer opinion.  This list features the most prestigious companies in our state, providing us the opportunity to learn from the best.

Adolfson & Peterson Construction
Headquarters: Minneapolis
Year Est.: 1991
No. of Employees in AZ: 69
Recent Award: AIA Kemper Goodwin Award – 2009
WEB: www.a-p.com

AlliedBarton Security Services
Headquarters: Conshohocken, Penn.
Year Est.: 1957
No. of Employees in AZ: 1,047
Recent Award: Brandon Hall Research Award for Best Integration of Learning and Talent Management – 2009
WEB: www.alliedbarton.com
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American Express
Headquarters: New York
Year Est.: 1850
No. of Employees in AZ: 7,219
Recent Award: Fortune Magazine’s Most Admired Companies – 2010
WEB: www.americanexpress.com
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Arizona Charter Academy
Headquarters: Surprise
Year Est.: 2001
No. of Employees in AZ: 61
Recent Award: Elks Lodge Community Partner of the Year – 2010
WEB: www.azcharteracademy.com
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Banner Health
Headquarters: Phoenix
Year Est.: 1999
No. of Employees in AZ: 27,528
Recent Award: Gallup Great Workplace Award – 2009
WEB: www.bannerhealth.com
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BeachFleischman PC
Headquarters: Tucson
Year Est.: 1991
No. of Employees in AZ: 104
Recent Award: Accounting Today’s Best Accounting Firms to Work For – 2009
WEB: www.beachfleischman.com

To buy a print version of the 2010 Arizona’s Most Admired Companies
go to MagCloud.com

Arizona's Most Admired Companies November-December 2010

Surprise Medical Plaza, AZRE July/August 2010

Medical: Surprise Medical Plaza At The City


SURPRISE MEDICAL PLAZA AT THE CITY

Developer: Ensemble DevMan of Arizona
General contractor: Low Mountain Construction
Architect: Matthew Budge Associates Architects
Location: SWC of Litchfield Rd. and Statler Blvd., Surprise
Size: 35,400 SF

The $8M medical office building in Surprise will be 2 stories and will beanchored by a 20,000 SF suite occupied by a Banner Health primary care practice, women’s health group, urgent care center and imaging center. Completion is expected by 1Q 2012.


AZRE July/August 2010
Arizona Business Magazine hosts their "2010 Health Care Leadership Awards" to honor those in the Health Industry

2010 HCLA – Hospital Executive

Honoree: Peter Fine, CEO, Banner Health

Peter Fine, CEO Banner Health.2010 Health Care Leadership Awards

Peter Fine, CEO Banner HealthPeter Fine, president and CEO of Phoenix-based Banner Health for more than nine years, leads the nonprofit organization with 22 facilities in seven states and more than 35,000 employees.

Banner is the largest private employer in Arizona and admits more than 234,000 patients annually. In 2009, Fine oversaw, managed and implemented more than $1 billion in capital investment, including the $109 million M.D. Anderson Banner Cancer Center on the campus of Banner Gateway Medical Center in Gilbert, opening in 2011; and the $356 million Cardon Children’s Medical Center at Banner Desert Medical Center in Mesa.

Ironically, while Fine was in discussions with Houston-based M.D. Anderson in 2008, he was diagnosed with throat cancer. While undergoing treatment, Fine maintained his management and leadership at Banner Health. Today, is he cancer free, and shares his experience with others as an inspirational model of leadership, courage and dedication to excellent patient care. Fine was hired as CEO of Banner Health in November 2000.

Today, Banner provides more than $65 million in charity care annually and is nationally recognized for its patient safety efforts. Under Fine’s leadership, Banner has weathered the current economic recession, generating nearly $5 billion in annual revenue. At Banner, Fine oversees a system-wide initiative called Care Transformation that unites clinical care with leading-edge clinical computer systems to provide better, safer care to patients.

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Finalist: Laurie Eberst, President and CEO, Mercy Gilbert Medical Center

Laurie Eberst is the Presidet and CEO of Mercy Gilbert Medical Center
Laurie Eberst isn’t your typical hospital executive. An RN with an MBA, Eberst has been president and CEO of Mercy Gilbert Medical Center since 2004, and with the exception of a seven-year time period, she has been with Catholic Healthcare West, which operates Mercy Gilbert, since 1979.

Laurie Eberst is the Presidet and CEO of Mercy Gilbert Medical Center.  She visits with patients on a daily basis, recognizing that these encounters are the most important meetings she has on any given day. The conversations resulting from these meetings enable Eberst to ensure that each patient is receiving the best possible medical treatment. That’s not all.

One of Eberst’s favorite events is the quarterly Tea with Laurie. Every employee who is mentioned in a letter from a patient or family is invited to have tea with Eberst at this recognition event. She also holds town hall meetings and monthly birthday celebrations for employees. Eberst was drawn to health care because she has the true, nurturing nature of a caregiver.

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David Veillette, CEO, Cancer Treatment Centers of America (CTCA)

David Veillete is the CEO and President of Cancer Treatment Centers for America (CTCA)Most mornings, you won’t find David Veillette, president and CEO of Cancer Treatment Centers of America (CTCA) at Western Regional Medical Center, sitting at his desk. More likely he’s at the inpatient unit, chemotherapy infusion area or outpatient clinic visiting with patients and their caregivers to learn about their experience at CTCA and how his staff can improve upon it.

David Veillete is the CEO and President of Cancer Treatment Centers for America (CTCA). With more than 35 years of experience in the health care field in clinical and leadership roles, Veillette has held national registries in cardiovascular, perfusion, radiology and pulmonary technologies. Under his guidance and leadership, the hospital has flourished, providing cancer patients in the Western United States with a new and unique option in cancer care.

When other hospitals say, “There is nothing more we can do,” Veillette says they mean there is nothing more they can do. He believes there is always more that can be done, and champions that philosophy at CTCA.

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Anderson Banner Cancer Center, AZRE March/April 2010

Medical: M.D. Anderson Banner Cancer Center


M.D. ANDERSON BANNER CANCER CENTER

Developer: Banner Health
Contractor: DPR Construction
Architect: Cannon Design
Size: 120,000 SF
Location: Higley Rd. & US 60 in Gilbert

The $107M development will include a 3-story building dedicated to outpatient services. The center will treat inpatients on two floors inside Banner Gateway Medical Center, which was built in 2007. Construction on the cancer center began December 2009, with completion scheduled for fall 2011.

AZRE March/April 2010
red-banner

Best Medical Project 2010

Banner Ironwood Medical Center

Banner Ironwood is a 24-bed, start-up facility with the ability to grow to 86 beds without any building expansion. The selection of sustainable products was highly considered throughout the design and construction process. BIM was an integral piece of the project’s design and construction process, allowing the team to design and deliver the project in 22 months — six months for design and 16 months for construction. One unique approach utilizing BIM that McCarthy and SmithGroup developed was the virtual mock-up of a typical patient room. Using this mock-up, the construction team was able to show user groups months ahead of physical construction how the room would appear, as well as figure out the measurement and placement of critical equipment.

Developer: Banner Health
Contractor: McCarthy Building Companies
Architect: SmithGroup
Size: 230,000 SF
Location: Gantzel & Combs roads, Queen Creek
Completed: September 2009

Honorable Mention: Banner Thunderbird
Medical Center Tower Best Medical Project 2010

Developer: Banner Health
Contractor: McCarthy Building Companies
Architect: NTD Architecture
Size: 332,890 SF
Location: 5555 W. Thunderbird Rd., Glendale
Completed: October 2009


AZRE Red Awards March 2010 | Previous: Best Office Project | Next: Best Educational Project


Peter Fine President and CEO Banner Health

Peter Fine, Now CEO Of Banner Health, Drove A Taxi As His First Job

Peter Fine
President and CEO
Banner Health

Describe your very first job and what lessons you learned from it.
Once I got past delivering newspapers as a little kid, my first job with significant responsibility was driving a taxicab outside of New York City. I did this starting the summer after high school, and did it for each year while in college, plus the year after college. It was 12-hour shifts, 6 a.m. to 6 p.m., six days a week. Things learned included the value of hard work, and no matter what the job is you have a responsibility to do it right because someone is depending on you.

Describe your first job in your industry and what you learned from it.
My first job in the health care industry was working as an administrative assistant in a small hospital and I had responsibility for the admitting department. What I learned was that frontline workers know a lot about what is going on, all you have to do is ask them.

What were your salaries at both of these jobs?
As a cab driver, I would make about $50 a day and as an administrative assistant, I made about $13,000 per year.

Who is your biggest mentor and what role did he or she play?
I had three mentors who taught me lessons I actively use on a regular basis. Art Malasto was CEO of a hospital in Indiana, where I was an assistant administrator. He taught me that “visibility breeds credibility, credibility breeds trust, so if you wanted to be trusted, you have to be visible.” Gary Mecklenburg was a CEO at a hospital in Chicago, where I was a senior vice president. He taught me to “plan the work and work the plan.” In other words, you have to plan to know where you want to go, and you have to work the plan if you want to get there. It’s a simple concept that many times cannot be executed.Finally, Ed Howe, a health system president that I worked for in Milwaukee, taught me that to stay focused, you have to “tune out the static.” That lesson has helped me to stay focused on what needs to be done, no matter what else is going on around me.

What advice would you give to a person just entering your industry?
Make sure you have a passion for complexity and a high tolerance for ambiguity, and always remember that misery is optional.

If you weren’t doing this, what would you be doing instead?
I’d be coaching a 12-year-old soccer team or coaching a college lacrosse team.

Susan Edwards - Banner Health

Susan Edwards – President Of The Arizona Region At Banner Health Systems

The health care industry remains a bright spot in Arizona’s dismal economic landscape, with Banner Health shining among the very brightest.

Headquartered in Phoenix, the not-for-profit health system has 12 hospitals in the Valley and is the second-largest employer in Arizona behind Wal-Mart with more than 26,000 full-time employees.

Banner’s Arizona region President Susan Edwards says the state’s growing population has enabled the company to expand and provide high-quality medical services to communities throughout the Valley. Since 2002, Banner has opened two new hospitals, started construction on a third, expanded a number of current facilities and purchased land for future growth.

“Banner has been in a growth mode for quite some time,” Edwards says. “And even though the population growth in Arizona has slowed down, we are committed to completing the projects on the table. We are a strong company and we run our hospitals very effectively. It’s not just about getting bigger and growing. It’s about continually improving how we structure our facilities and providing excellent patient care.”

Edwards maintains she is very optimistic about the future of the health care industry, despite the increasing costs of doing business, lack of health care workers and the government lowering reimbursements to health care providers.

“When the industry is challenged, we have to make major changes and adapt,” she says. “We also have to keep a close eye on operations so we get through the tough times.”

Banner is currently scrutinizing business practices at all levels of its hospitals to see where it can make improvements on the company’s bottom line. Employees working on the front lines were asked to provide feedback on making business practices more efficient, and in twoweeks Banner officials received 412 suggestions. A suggestion that has already been implemented is going to save Banner $100,000 annually, Edwards says.

Edwards, 52, has been president of Banner’s Arizona region since 2002. Prior to Banner, she served as both executive vicepresident and chief operating officer of St. John’s Health System in Detroit, and interim president and chief executive officer of St. John’s Hospital, a 600-plus bed tertiary hospital. Before that, she held health care leadership roles in Pennsylvania, Michigan and Ohio.

Edwards was born and raised in Sparta, N.C. She holds a bachelor’s degree in biology from Emory and Henry College, a master’s of health administration degree from Duke University, and a law degree from Wayne State University.

www.bannerhealth.com

Medical supplies

Applying Supply Chain Management Techniques To The Health Care Industry

Businesses in the 21st century frequently attribute success to the ability to tame their supply chains.

The business of hospitals, in comparison, is quite different. Hospitals are service organizations with diverse customers, including physicians who have strong commitments to given manufacturers and products. Patients, of course, are customers, and their treatment often requires costly items. Because their customer base is so diverse, and because the associated costs can be high, it is increasingly important for hospitals to purchase materials at the best price possible.

One of the distinguishing characteristics of the health care industry is the prevalence of national group purchasing organizations that leverage the purchasing power of many hospitals. In Phoenix, Premier provides Banner Health and St. Joseph’s Hospital and Medical Center with strategic procurement services. Mayo Clinic is a member of Novation, giving it access to services that support standardization for expensive clinical items. Amerinet assists Scottsdale Healthcare in managing purchasing costs and improving processes.

Escalating costs
Increased costs associated with health care represent a challenge, however, it is not always clear why or where health care costs are escalating. The escalation of supply costs, frequently at greater than 10 percent annually, means that supply costs are the second-highest area for hospital expenditures after labor.

Paul Carmichael, director of materials management at Phoenix Children’s Hospital (PCH), fears that manufacturers will not continue to absorb supply-cost increases on their own. In addition, an aging population that demands a high quality of life will also drive up overall costs.

Hospitals require significant supplies. Mayo Clinic Arizona, for example, itemizes more than 100,000 products. Banner Health, which operates 22 hospitals in Arizona, reported $2.2 billion in net revenue, with supply expenses estimated at $390 million. Of this, $190 million were expended for medical/surgical supplies and $90 million for pharmaceuticals.

Doug Bowen, Banner’s materials manager, points to the challenges associated with pharmaceutical costs that now consume almost a quarter of supply expenses. Banner very strategically employs centralized control and standardized processes to optimize its supply operations. Bowen believes that Banner’s data warehouse system will disseminate best practices across the system.

Ryan Kirane is materials manager for Mayo Clinic Arizona and points with pride to the integration of the supply chain organization across the Mayo network and the subsequent supply chain excellence. In Arizona, Mayo’s net patient revenue of more than $500 million is balanced against a supply expense of approximately $125 million — signaling supply-intense procedures such as implant surgery. With pharmaceuticals making up about $45 million in expenses, Mayo echoes Banner’s concern with the cost of medications.

Each hospital faces different challenges in managing the supply environment. PCH, whose patients range from infants to adolescents, requires up to a third more products due to patient-size requirements. PCH utilizes advanced supply chain management technologies, such as “just-in-time” stock replenishment, to maintain low levels of inventory, yet excellent access to products. It has also worked with its national distributor, Owens & Minor, to utilize activity-based management principles,leading to improved product access and efficiencies. With almost $360 million in total patient revenue, PCH reports more than $62 million in supply expenses for the thousands of different items necessary to deliver care.

Solving the problem
In 2004, the Health Sector Supply Chain Research Consortium was founded at the School of Health Management and Policy at ASU’s W. P. Carey School of Business. The consortium brings together U.S. firms to solve problems unique to the health care supply chain.

Eugene Schneller, Ph.D., is professor and Dean’s Council of 100 Distinguished Scholar in the W. P. Carey School of Business, School of Health Management and Policy. He can be reached at gene.schneller@asu.edu.

Healthcare Technology, AZRE Magazine May/June 2008

High-Tech Touch: Looking At Healthcare Technology

Healthcare construction projects are on the rise in Arizona and across the United States. Spurring the increase is competition among hospitals, aging facilities, growing populations and demand for new and changing healthcare technology. Industry experts estimate the boom will exceed $60 billion a year by 2010.

Construction costs are also soaring and putting pressure on an already stretched healthcare system. Between 1999 and 2006, construction costs in San Francisco jumped from $190 PSF to over $600 PSF. They also rose dramatically in the Phoenix market. Kip Edwards, system vice president for design and construction of Banner Health, created the following chart to illustrate cost escalation between 2004 and 2009.

“Our biggest challenge is always cost,” says Edwards. “It used to be $1 million a bed to build a hospital, but now it’s closer to $2 million.”

Edwards says one of the biggest factors driving capital costs is Information Technology. Hospitals and medical facilities at one time budgeted hundreds of thousands of dollars to pay for IT, but now must budget millions. Additional resources are also necessary to create flexibility for future growth, such as producing excess capacity for the continued addition of information systems, sizing up computer closets and HVAC systems and adding extra electrical power for future needs.

Healthcare Technology: Building Information Modeling (BIM)

To help manage these growing costs, many healthcare construction teams are using BIM, a technological tool designed to detect problems prior to construction and reduce downtime in the field. BIM enables users to create a virtual 3D model of an entire building, including walls, finishes, heating and air conditioning, plumbing, electrical, etc. Each trade creates its own 3D model at the start of a project. The models are then imported into a software program called Navisworks, which analyzes the drawings to detect collisions in the project.

Sharon Harper, CEO of The Plaza Companies, contends BIM is one of the most important pieces of technology used to develop healthcare facilities today.

“Healthcare facilities are extremely complex and each area has specific challenges,” she says. “The ceiling in an operating room, for example, is full of pipes and ducts because the room has special air requirements. With BIM, we can build all that into the model and then run conflict resolution to maintain control over what goes into the ceiling. BIM helps us optimize the design, and make it better and less costly.”

Information Highway

Server-based project management systems are also widely used today to help run healthcare construction projects. Orcutt|Winslow, a Phoenix-based architectural firm, creates a Web site for each of its projects through an online database they call Virtual Project. Members of the construction team can log onto the Web site anytime from anywhere, and check the progress of the project. They can also look at staff hours, schedules, updates, construction documents, the project’s budget and floor plan.

“The Web sites allow our project teams to share information quickly and effectively,” says Neil Terry, a partner at Orcutt|Winslow. “Before Web sites, we used scanners and fax machines and e-mailed PDFs. But e-mail has limitations on the size of file you can send, whereas any size file can be uploaded to a Web site.”

Computerization

Steve Steinberg, former senior director of Lauth Property Group, says great advancements in healthcare and the market sector’s construction have taken place over the last five years, due to the computer and its ability to analyze information quickly and distribute it globally. He also contends that healthcare delivery is on the cusp of a paradigm change.

“The face of healthcare delivery is changing,” Steinberg says. “Hospitals are becoming infused with research and development components so delivery of care will become more personalized and specific to a person’s profile. That means hospitals will have doctors and nurses, plus added care givers like scientists, on their team who will advise on genetic and molecular levels and create treatments that are custom-designed for each person.”

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Links for more information about healthcare technology:

www.bannerhealth.com

www.lauth.net

www.owp.com

www.theplazaco.com

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Per Diem Offices

UTAZ Development in Gilbert is building medical per diem offices in several locations around the Valley to help attract doctors and specialist to local hospitals.

The purpose of the per diem offices is twofold: (1) to provide physicians and healthcare practitioners an opportunity to establish a new practice or expand an existing practice in a new community; (2) and to provide temporary medical offices for practitioners waiting for new office space to be completed.

The daily, short-term lease rates associated with these per diem offices allow the practitioner flexibility in the number of hours and days they will occupy the space, thus minimizing the cost and risks associated with typical lease terms.

“This concept is not unlike the executive office suites created for general office use,” says Terri Tobey, senior vice president of sales and marketing for UTAZ. “The difference is that the UTAZ per diem offices are designed specifically to accommodate the medical user.”

The 1,500 SF per diem offices include architectural and design features that create a welcoming and healing environment. Each office also has a procedure room and basic exam rooms that are fully furnished and stocked with basic medical supplies, as well as individual locked storage for each lessee to secure their own specific supplies.

Physician and healthcare practitioners can lease the space on a per-day or per half-day basis, one to six days per week. Lease rates are $150 per half day, $300 for a full day. Terms can be as short as six months or as long as two years.

UTAZ provides all basic medical supplies such as exam table paper, cotton swabs, tongue depressors and other disposals. They also supply basic exam equipment such as otoscopes, blood pressure devices and thermometers, as well as office equipment such as phone, fax and copy machine.

“We’re trying to help the Valley attract doctors and specialists,” Tobey says. “There’s still a great need for medical professionals in Arizona. The challenge is finding the perfect location with the attributes needed for success.”

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 AZRE Magazine May/June 2008