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Arizona’s 25 Most Influential Minority Business Leaders

What would you do it you opened the pages of this magazine and saw Jerry Colangelo listed as one of the 25 Most Influential Minority Business Leaders in Arizona? You’d do a double take, but it’s not out of the realm of possibilities.

Consider this: Among 439,633 Arizonans under age 5 in 2012, this is how the Census broke down those numbers:

• Hispanic: 196,776 (44.8 percent)
• Non-Hispanic white: 171,888 (39.1 percent)
• American Indian and Alaska Native: 22,198 (5 percent)
• Black: 18,617 (4.2 percent)
• Asian: 11,311 (2.6 percent)
• Two or more races: 18,088 (4.1 percent)
• Native Hawaiian/Pacific Islander: 755 (0.17).

If you combine numbers like that with the fact that 91.7 percent of the nation’s population growth between 2000 and 2010 was attributed to racial and ethnic minorities, with the largest segment of population growth occurring in the Hispanic community, lists like this — the 25 Most Influential Minority Business Leaders in Arizona of 2014 — could become obsolete in our lifetimes.

Until we get there and as our state’s minority population moves toward majority status, it’s important to notice that the state’s most dynmanic business leaders have helped fuel our economic recovery and growth … and many of them just happen to be minorities. And while the future looks bright, we still have work to in overcoming outdated perceptions. According to a 2012 Minority Business Enterprise Report commissioned by the Arizona Hispanic Chamber of Commerce and the Phoenix MBDA Business Center, a significant portion of minority-owned businesses in Arizona have had problems earning the trust of their customers, suppliers, peers and lenders and need support from within the business community to help break down some of these misconceptions and stigma.

The 25 Most Influential Minority Business Leaders in Arizona, whom you will meet below, have changed that perception.


Benito AlmanzaBenito Almanza
Arizona president
Bank of America
Heritage: Mexican-American
A graduate of Stanford University and the University of Santa Clara, Almanza has been with Bank of America for 34 years. He is a member of the Teach for America Arizona Board.
His hope for professional legacy: “Working every day with great teammates to make our community better and surrounding myself with strong leaders and developing them to replace me.”

Glynis BryanGlynis Bryan
CFO
Insight Enterprises Inc.
Heritage: Jamaican
Bryan is responsible for setting the company’s financial strategies; ensuring the company has the appropriate financial and operating controls and systems in place to support future growth; and serving as a financial and business advisor to the leadership team.
Her hope for professional legacy: “Setting a standard of excellence in an organization and helping teammates reach their full potential.”

Debbie CottonDebbie Cotton
Director
Phoenix Convention Center
Heritage: African American
Cotton manages a staff of 240 employees, a budget of $47.5 million and is the city’s chief representative to the state’s tourism and hospitality industry.
Her hope for professional legacy: “Throughout my career, I’d like to be remembered for adhering to high ethical standards and inspiring individuals to pursue careers within public service.”

Gonzalo de la Melena Jr.Gonzalo de la Melena Jr.
President and CEO
Arizona Hispanic Chamber of Commerce
Heritage: Peruvian and Mexican
De la Melena, who directs the state’s leading advocate representing more than 60,000 Hispanic business enterprises, has 20 years of global brand management, business development and Latino marketing experience gained from conducting business in more than 30 countries.
His hope for professional legacy: “For helping the lifeblood of our economy, small businesses, prosper – especially minority-owned businesses, now one-fourth of Arizona’s total. Our future global competitiveness depends on it.”

Diane EnosDiane Enos
President
Salt River Pima-Maricopa Indian Community
Enos is the 23rd president of the Salt River Community and the second women elected to the office. Enos is the first member of the Community to become a lawyer and practiced in the Maricopa County Public Defender’s Office for 11 years.
Heritage: Onk Akimel O’Odham, or one of the River People otherwise known as Pima
Her hope for professional legacy: “The top qualities I’d like to be remembered for is someone who was unafraid to try something new and to do it with integrity for the good of my people.”

rufusRufus Glasper
Chancellor
Maricopa Community Colleges
Heritage: African American
As the CEO of one of the nation’s largest systems of community colleges, he is leading MCCCD to address the community’s education and workforce training needs.
His hope for professional legacy: “An educator who focused on human rights and education for first-generation college students, quality healthcare, workforce and jobs, and re-framing an institution for the future.”

Deborah GriffinDeborah Griffin
President of the board of directors
Gila River Casinos
Heritage: Gila River Indian Community member and Mexican-American
Griffin leads Arizona’s largest minority-run business with more that 2,500 employees.
Her hope for professional legacy: “I would like to be remembered for creating a legacy of self-sufficiency and volunteerism in my community. My Tribe needs only to seek within themselves and have confidence in the beauty of their abilities to continue this legacy.”

Edmundo HidalgoEdmundo Hidalgo
President and CEO
Chicanos Por La Causa
Heritage: Mexican-American
His hope for professional legacy: “I would like to be remembered as someone who made a difference in the community. The Hispanic community is at a breakaway point because of our demographics and the opportunities we establish for our youth will have a tremendous impact on our state. As the Hispanic community goes, so will the State of Arizona. My focus has always been in support of education and ensuring that young people get the opportunities I received as I was beginning my career. I am blessed to have been mentored by many individuals who were willing to invest in me and I have the responsibility to do the same.”

leezieLeezie Kim
Partner
Quarles & Brady
Heritage: Korean-American
Kim returned to Quarles & Brady after four years of service as a White House appointee to the U. S. Department of Homeland Security and as general counsel to Arizona Gov. Janet Napolitano.
Her hope for professional legacy: “As a trusted counselor to and partner with leaders in business, government and politics who found new ways to get things done that make life a little better for us all.”

david_kongDavid Kong
President and CEO
Best Western International
Since he was named president and CEO in 2004, Kong has guided Best Western International through a brand resurgence, winning numerous awards for training, social media and ecommerce initiatives. Brand Keys ranked Best Western No. 1 in customer loyalty for four consecutive years.
Heritage: Asian
His hope for professional legacy: “I’d like to be remembered for having made a positive difference – in Best Western, in the industry and the lives of all our associates and our hotel staff.”

paulPaul Luna
President and CEO
Helios Education Foundation
Luna leads Helios Education Foundation, a philanthropic organization dedicated to creating opportunities for individuals in Arizona and Florida to succeed in postsecondary education. He is the former president of Valley of the Sun United Way and has held positions with Pepsi, IBM and the Office of Governor Bruce Babbitt.
Heritage: Hispanic
His hope for professional legacy: “That I cared about our community and helped make it better.”

steve_maciasSteve Macias
President and CEO
Pivot Manufacturing
Macias serves on the Governor’s Council on Small Business and is co-chair of the Supply Chain/Buy Arizona Committee, which is exploring ways government can help promote Arizona businesses.
Heritage: Hispanic
His hope for professional legacy: “Someone who made a positive impact in promoting manufacturing as a worthwhile and valuable industry that provides quality jobs to the community.”

louis_manuelLouis J. Manuel, Jr.
Chairman
Ak-Chin Indian Community
Heritage: Tohono O’odham Nation and Ak-Chin Indian Community
Manuel has diversified his Community’s economy with Ak-Chin Farms, Harrah’s Ak-Chin Casino, Santa Cruz Commerce Center and a partnership with the Super Bowl Host Committee.
His hope for professional legacy: “That my decision making gave value and sustainability in promoting a strong future and self-reliance for the people I serve.”

clarenceClarence McAllister
President and CEO
Fortis Networks
Heritage: Black Latino
McAllister was born in Panama and earned degrees in electrical engineering from ASU and an MBA from Nova Southeastern University. In 2000, he and his wife Reyna started Fortis, a certified 8a and HUBZone government contractor specialized in engineering, construction and technology services.
His hope for professional legacy: “As an immigrant who came to this country in search of the American Dream, and built a business that employs more than 100 Americans.”

alfred_molinaAlfredo Molina
Chairman
Molina Jewelers
Heritage: Hispanic
Molina went from fleeing Cuba as a boy without a change of clothes to rocking the jewelry world by selling the Archduke Joseph diamond for $21.5 million, the most ever paid at auction for a colorless diamond.
His hope for professional legacy: “I would like to be remembered as someone who made a difference. I believe that every individual is a precious jewel and it is my commitment and social responsibility to ensure they become brilliant.”

rodolfo-pargaRodolfo Parga, Jr.
Managing shareholder
Ryley Carlock & Applewhite
Heritage: Mexican
Parga has been named in multiple editions of Southwest Super Lawyers®, including in 2014. He also serves on the doard of Chicanos Por la Causa, a leading nonprofit helping advance and create economic and educational opportunities.
His hope for professional legacy: “I would like to be remembered as always trying my best to do the right thing, and being fair and loyal.”

Dan PuenteDan Puente
Owner
D.P. Electric
Heritage: Hispanic
Puente founded D.P. Electric in 1990 out of his garage with one truck and has built it into the largest Hispanic-owned company in Arizona.
His hope for professional legacy: “As an individual who created a company that set industry standards, gave back to an industry generous with opportunity and helped people grow personally and professionally.”

terry_ramblerTerry Rambler
Chairman
Arizona Indian Gaming Association
Heritage: San Carlos Apache Tribe
In addition to his AIGA leadership role, Rambler is chariman of the San Carlos Apache Tribe and president of the Inter Tribal Council of Arizona.
His hope for professional legacy: “Strong vision, consistent oversight, yet humble leadership that helped build successful partnerships in economic development, cultural preservation, and the expansion of tribal sovereignty.”

Terence-RobertsTerence Roberts, M.D., J.D.
Radiation oncologist
Banner MD Anderson Cancer Center
Heritage: African-American
Roberts specializes in stereotactic radiosurgery and tumors of the brain, spine, and prostate. He also received a law degree from Stanford University and practiced corporate law in the Silicon Valley for start-up companies.
His hope for professional legacy: “I would like to be remembered professionally as compassionate, knowledgeable and having integrity. Also as someone who innovated in an era of health care reform.”

Steve SanghiSteve Sanghi
Chairman, CEO and president
Microchip Technology
Heritage: Indian
Sanghi, named president of Microchip in 1990, CEO in 1991 and chairman in 1993, is the author of “Driving Excellence: How The Aggregate System Turned Microchip Technology from a Failing Company to a Market Leader.”
His hope for professional legacy: “For building Microchip Technology into one of the most successful semiconductor companies, which achieved an unprecedented 100 consecutive profitable quarters in a brutally competitive industry.”

roxanne_song_ongRoxanne K. Song Ong
Chief presiding judge
Phoenix Municipal Court
Heritage: Chinese American
Song Ong, who chair the Arizona Supreme Court Commission on Minorities, was the first Asian female judge in Arizona and first minority to be named as Phoenix chief judge.
Her hope for professional legacy: “It would be my great honor to be remembered for three primary things: (1) my work in judicial and civics education, (2) the promotion of cultural competency and diversity in the judicial and legal profession, and (3) promoting access to justice for all Arizonans through legal services and education.”

Charlie-ToucheCharlie Touché
Chairman and CEO
Lovitt & Touché, Inc.
In 2004, Touché became chairman and CEO of one of the largest insurance agencies in the United States, with nearly 200 employees in three offices and more than $300 million in total premiums.
Heritage: Hispanic
His hope for professional legacy: “I’m proud to say that during this entire century, we’ve remained a client-driven, hands-on kind of company with people who will roll up their sleeves and jump in the trenches to help those we do business with.”

lisa_uriasLisa Urias
President and CEO
Urias Communications
Heritage: Mexican
Urias has built an award-winning advertising, marketing and public relations agency that specializes in the diverse markets of the American Southwest, particularly the Hispanic market.
Her hope for professional legacy: “Having a nationally-known agency that successfully connects corporations to multicultural markets through ad campaigns, public relations and community outreach for mutual benefit and respect.”

lonnie_williamsLonnie J. Williams, Jr.
Partner
Stinson Leonard Street LLP
Heritage: Black
The Yale graduate’s practice focuses on commercial business and employment-related matters. He is a fellow of the American College of Trial Lawyers, one of the premier legal associations in America.
His hope for professional legacy: “Martin Luther King said, ‘if it falls your lot to be a street sweeper, go on out and sweep streets like Michelangelo painted pictures.’ Professionally, I would like to be remembered like that street sweeper.”

kuldip_vermaKuldip Verma
CEO
Vermaland
Heritage: East Indian
Vermaland, founded by Verma, holds more than 24,000 acres of land in Arizona with a portfolio valued at $500 million. Nabha, the tiny Indian village Verma was born in, could fit many times into the acreage he now controls in the desert Southwest.
His hope for professional legacy: “I saw a dream and pursued it. Success without humility is a curse, but Success with your values intact is a blessing.”

MD-Anderson-HDR-1a

Expanded Banner MD Anderson to open April 1

Banner MD Anderson Cancer Center will open the second phase of its outpatient facility on April 1, a major addition which will greatly expand specialty cancer treatment services and prevention programs in Arizona.

The three-story addition includes The James M. Cox Center for Cancer Prevention and Integrative Oncology, additional clinic and infusion space, a separate hematology/stem cell transplant clinic, and expanded radiation oncology space.

The Cox Center, established through a $5 million grant from The James M. Cox Foundation, will provide preventative health consultations for patients to determine their risk for cancer. Medical experts also will offer integrative health consults for patients undergoing cancer treatment as well as cancer survivors. The center will feature services to assist patients during their cancer journeys, such as acupuncture, massage, exercise, nutrition programs and counseling.

“Expansion of our cancer services will allow us to continue advancing the level of cancer care in Arizona through multidisciplinary treatment and access to cutting-edge research,” said Dr. Edgardo Rivera, medical director of Banner MD Anderson. “These expansion projects are more than just adding rooms, space and equipment. Our team approach ensures each patient receives a comprehensive plan of care for his or her individual diagnosis.”

For radiation oncology, the expansion adds two new linear accelerators to the current three. These advanced radiation devices are used to treat a broad spectrum of tumors throughout the body, while enabling treatment of highly complex cancers that require extreme targeting precision. The new machines are housed in rooms with patient amenities such as ceiling-mounted video screens, featuring a variety of relaxing nature scenes patients can choose to watch during their treatments.
Patients undergoing treatment for blood cancers will receive care in the new stem cell transplant/hematology clinic, located on the third floor. This clinic will care for patients with a variety of blood cancers such as leukemia, lymphoma, multiple myeloma and many more, as well as stem cell transplant patients.

Additional infusion treatment areas will provide more space for patients receiving chemotherapy and other intravenous treatments.

Thirty additional clinic rooms will expand the capacity of the Multidisciplinary Clinic. Physicians, nurses, nurse practitioners, pharmacists and additional care providers see patients in this clinic, which is usually divided by disease type.

Banner MD Anderson will hold a free “Power of Prevention” community event from 9 a.m. to 1 p.m., March 22 at the facility, 2946 E. Banner Gateway Drive. This will include tours of the new Cox Center and additional treatment areas. Learn more about the event at www.BannerMDAnderson.com/events.

clinical research advantage

Banner Health launches pharmacy services division

Banner Health is improving medication management and providing more convenient access to pharmacy services for patients by launching a new Banner Pharmacy Services division. The new division will include a Banner Family Pharmacy network and a Compounding Pharmacy Center and will ensure improved care and services for patients and provide opportunities for cost savings through an integrated operational approach to pharmacy services throughout Banner.

The Banner Family Pharmacy will include a network of retail pharmacies placed within Banner Health hospitals and larger Banner Medical Group (BMG) health centers to provide patients with more convenient access to pharmacy services and medications. Banner Health pharmacists will provide counseling to improve outcomes, limit side effects and negative drug interactions and recommend cost-effective alternative medications. Most patients can also receive first doses of many medications before they leave the care setting, which will help with medication compliance.

Banner Health will also establish a Compounding Pharmacy Center that will insource and centralize compounding, packaging and distribution of many medications to Banner Health hospitals and Banner Family Pharmacies, ensuring greater quality control and cost savings.

Pam Nenaber has been named chief executive officer of Banner Pharmacy Services. Nenaber has extensive health care leadership experience. She most recently served as the chief operating officer for Banner Medical Group and prior to that, as chief executive officer at Banner Gateway Medical Center and Banner MD Anderson Cancer Center.

Joining Nenaber in development of the new division is Tina Aramaki, PharmD, who has been hired as vice president of Banner Pharmacy Services. Aramaki has 33 years of pharmacy experience in progressive leadership positions and most recently served as system director of pharmacy services for Intermountain Healthcare. She will lead the design, development and implementation of Banner Health’s pharmacy services delivery model and will be responsible for all pharmaceutical operations across the system.

“The launch of our new Banner Pharmacy Services division allows us to implement a unique and comprehensive approach to pharmaceutical care for the benefit of our patients,” said Jim Fernando, Western Region president for Banner Health. “I’m confident that Pam and Tina’s leadership will guide us as we integrate pharmacy services across Banner’s entire continuum of care.”

Headquartered in Phoenix, Banner Health is one of the largest, nonprofit health care systems in the country. The system manages 24 acute-care hospitals, the Banner Health Network and Banner Medical Group, long-term care centers, outpatient surgery centers and an array of other services including family clinics, home care and hospice services, and a nursing registry. Banner Health is in seven states: Alaska, Arizona, California, Colorado, Nebraska, Nevada and Wyoming. For more information, visit www.BannerHealth.com.

Judith Wolf

Dr. Judith Wolf – 50 Most Influential Women in Arizona Business

Dr. Judith Wolf – Chief of surgery, Banner MD Anderson Cancer Center

Wolf provides leadership and medical guidance for the surgery program at the cancer center. She has held numerous academic and administrative appointments at MD Anderson over the last eight years, and has served as the principal investigator for a multitude of research grants and protocols related to gynecologic cancers.

Surprising fact: “Until my late 20s, I was not athletic. Now, I run or exercise every day, have run 15 marathons and started a 5K race to raise money for ovarian cancer research.”

Biggest challenge: “Providing the best comprehensive care for people with cancer drives me to make sure we build the best cancer center in the Southwest and makes it exciting to come to work every day.”

Fifty Most Influential Women in Arizona Business – Every year in its July/August issue Arizona Business Magazine features 50 women who make an impact on Arizona business. To see the full list, read the digital issue >>

healthcare

Banner Goldfield Medical Center will open on Friday

Banner Goldfield Medical Center (formerly Arizona Regional Medical Center) will open its doors for patient care at 7 a.m. on Friday, June 14.

The hospital has been temporarily closed for one month while Banner systems and practices were implemented. During that time, new technology and equipment was installed and hospital staff underwent training.

Banner Goldfield Medical Center, located on Ironwood and Southern roads in Apache Junction, Ariz., will provide state-of-the-art, patient-centered care to the communities of Apache Junction and Gold Canyon. The 30-bed hospital will offer an array of medical care, including: emergency services, intensive care, medical/surgical care, progressive care, surgery, imaging, pharmacy and lab.

Banner Goldfield is part of nonprofit Banner Health. Banner Health was recently recognized as a top health system in the nation by Truven Health Analytics. As a Banner Health facility, Banner Goldfield will uphold Banner’s standard of efficient and effective medical care.

The hospital will utilize electronic medical records to ensure the highest level of patient care management and recordkeeping. In addition, the highly skilled on-site care team will be paired with the latest medical technology to provide excellent patient care. Patients in the Intensive Care Unit will be monitored by the Banner iCare team, which provides 24-hour remote monitoring of patients by physicians and nurses via closed-circuit cameras and technology. Banner iCare staff will work hand-in-hand with physicians and nurses at Banner Goldfield to provide an added level of care for patients.

Banner Goldfield will work closely with Banner’s neighboring health facilities and specialty hospitals in the East Valley to meet the health care needs of each and every patient. Patients requiring advanced heart care will have access to Banner Heart Hospital, a center that consistently ranks among the top hospitals in the U.S. for heart care. Patients in need of pediatric care will have access to experts and an array of pediatric services at Cardon Children’s Medical Center. In addition, Banner Health offers specialized care to East Valley residents in the areas of cancer, high-risk obstetrics, orthopedics and weight loss on the campuses of Banner Baywood Medical Center, Banner Desert Medical Center, Banner Gateway Medical Center and Banner MD Anderson Cancer Center.

Banner Goldfield Medical Center is located at 2050 W. Southern Ave. in Apache Junction, Ariz. For more information, visit www.BannerHealth.com/Goldfield or call 480-733-3300.

Banner MD Anderson Lantern Of Hope

$2M Grant from Piper Supports Fight Against Cancer

With a generous $2 million grant from Virginia G. Piper Charitable Trust, the Cancer Has Met Its Match campaign benefitting Banner MD Anderson Cancer Center is near its $20 million goal. The grant from Piper Trust, in support of the campaign, provides funding for capital, programs and services that will impact patients, their families and the community.

Launched in January 2011, the Cancer Has Met Its Match campaign has attracted support from more than 1,000 individual, corporate and foundation donors that share an interest in fighting cancer. The campaign has been on a path to success since its inception thanks to the involvement of dozens of dedicated community and business leaders who comprise the campaign cabinet.

In particular, Richard Adkerson, president and CEO of Freeport-McMoRan Copper & Gold, has been invaluable as the chair of the campaign, while Arizona Cardinals’ star receiver Larry Fitzgerald has taken an active role as honorary chair. Additional outstanding leadership has been provided by co-chairs Steve Rizley, senior vice president of Cox Communication and Kari Yatkowski, founder of Corporate Citizen.

Located in Gilbert, Ariz., the Banner MD Anderson Cancer Center, part of the Phoenix-based nonprofit Banner Health system, relies on philanthropic support to fund education and outreach activities, patient support programs, the latest technology and more. Another significant gift received in Fall 2012 from the James M. Cox Foundation will fund the creation of the Center for Cancer Prevention and Integrative Oncology, which will incorporate traditional cancer treatments with evidence-based integrative therapies, such as acupuncture, yoga or meditation, to aid pain and stress management.

The Cancer Has Met Its Match campaign seeks to raise the remaining $311,000 by June 30, 2013. A second fundraising effort will follow to secure support for additional capital and programmatic efforts associated with the ongoing expansion of Banner MD Anderson. Work is currently underway on a 130,000-square-foot expansion project at Banner MD Anderson Cancer Center which will double the total clinic exam rooms to 60, add three linear accelerators used in radiation treatment and include 13 additional infusion bays. It will also expand the Laboratory Intake Center and Welcome Center, as well as the Cox Center for Integrative Oncology and Cancer Prevention.

pharmaceuticals

Arizona bioscience job growth outpaces nation

Arizona’s bioscience sector added jobs at nearly four times the national rate over the past decade and experienced double-digit job growth during the economic recovery, a new report shows.

Since Arizona’s Bioscience Roadmap was launched in 2002, Arizona’s bioscience jobs have increased by 45 percent to 99,018 in 2011. Nationally, the growth rate during this time was 12 percent. While hospitals dominate Arizona’s bioscience jobs, the state’s non-hospital subsectors grew 14 percent in 2011 alone.  During the economic recovery years of 2009-11, the state’s bioscience jobs increased 11 percent while there was no gain across the state’s private sector.

The new performance analysis of Arizona’s bioscience sector, commissioned by the Flinn Foundation, also found that the number of bioscience establishments in Arizona continues to grow faster than the national average and bioscience wages in the state are outpacing those in other private-sector industries.

The 10th-annual study, released Feb. 5 by the Battelle Technology Partnership Practice, did reveal funding challenges for the state.  In 2012, Arizona fell to its lowest venture capital investment level since 2009 and suffered a drop in National Institutes of Health funding while the top-10 funded states advanced.

“Arizona’s bioscience sector continues to significantly outperform the nation in terms of job and establishment growth and has made impressive gains in building a more concentrated industry base,” said Walter Plosila, senior advisor to the Battelle Technology Partnership Practice.  “However, more attention must be paid to academic research performance and venture capital investment to continue the trend in years to come.”

Plosila added that progress has been made over the past decade on all 19 actions recommended by Battelle in 2002, including substantial progress on nine.

The Roadmap was launched in 2002 as a long-range plan to make the state’s bioscience sector globally competitive. The Roadmap was commissioned by the Phoenix-based Flinn Foundation, which committed to 10 years of major funding of Arizona biosciences and formed a network of committees involving statewide experts to implement its recommendations.

There was also a major increase in bioscience establishments, rising 31 percent since 2002 to 892 firms, which is above the national growth rate of 23 percent.

Bioscience jobs in Arizona pay an average salary of $56,328, or 28 percent higher than the $44,098 for all private-sector industries. Since 2002, bioscience salaries have increased 44 percent.

“After 10 years, Arizona has carved a niche in the highly lucrative and competitive biosciences field,” said Martin Shultz, chair of Arizona’s Bioscience Roadmap Steering Committee. “We’re one of the nation’s top emerging bioscience states, and our growth in high-wage jobs continued during both good economic times and bad.”

In terms of research dollars, NIH funding in 2012 was $174 million, or 19 percent greater, than the 2002 figure. This is a decrease from $184 million in 2011. While NIH funding, the gold standard for biomedical research funding, did increase slightly faster than the national average of 18 percent over the past decade, Arizona is no longer meeting its goal of obtaining funding at a growth rate higher than the top-10 funded states. In addition, its share of the funding pool remains nearly the same as it was in 2002.

The latest data also shows:
•    The largest non-hospital bioscience subsector continues to be research, testing and medical laboratories. This group now boasts about 8,900 workers across 466 establishments, roughly a 60 percent increase in both employees and firms since 2002. The other subsectors are drugs, pharmaceuticals and diagnostics; hospitals; medical devices and equipment; and agricultural feedstock and chemicals.
•    Venture capital investment was $22 million in 2012, which is the lowest figure since 2009. This was a drop of 68 percent from 2011, compared with a national decline of 49 percent.
•    Bioscience-related academic research and development expenditures at Arizona’s universities reached a record $452 million in 2011, a 55 percent increase since 2002. Arizona’s growth had outpaced the nation until 2009, but now trails the overall U.S. growth rate of 74 percent.
•    Arizona universities spun out seven bioscience companies in 2012. University discoveries have now led to 67 new bioscience startups since 2002 as well as 180 bioscience patents.

There were a number of major developments in 2012 that showed the collaborative nature of Arizona biosciences, including the completion of major projects, the approval of future pursuits, and an emphasis on education.

The University of Arizona opened its new Health Sciences Education Building on the Phoenix Biomedical Campus that enabled the UA College of Medicine-Phoenix to increase enrollment and for Northern Arizona University to begin Phoenix-based physician assistant and physical therapy programs. In addition, final approval was granted by the Arizona Board of Regents for the UA Cancer Center-Phoenix to be built on the same campus in partnership with St. Joseph’s Hospital and Medical Center.

A number of incubators and accelerators opened or expanded with more in the planning stages. BioInspire, an incubator for medical-device startups, opened in Peoria; GateWay Community College in Phoenix opened the Center for Entrepreneurial Innovation; the Arizona Center for Innovation at the UA Science and Technology Park in Tucson opened upgraded facilities and launched new programming; Flagstaff received funding for a planned accelerator; and the statewide Arizona Furnace accelerator began awarding seed money and access to incubation space.

Among other major developments, the inaugural Arizona SciTech Festival attracted 200,000 participants from across the state during February and March 2012, making it one of the largest in the nation; Banner Alzheimer’s Institute launched a $100 million trial to prevent or delay Alzheimer’s disease; a new skin-cancer drug first tested by Translational Genomics Research Institute and Scottsdale Healthcare received expedited approval from the Food and Drug Administration; Arizona State University began leading the first national algae biofuel testbed; Mayo Clinic announced plans for a new cancer center on its north Phoenix campus; and Banner MD Anderson Cancer Center in Gilbert announced a $63 million expansion.

On Dec. 4, 2012, the Flinn Foundation and bioscience leaders from across Arizona came together at the Arizona Biltmore to celebrate the 10th anniversary of the launching of Arizona’s Bioscience Roadmap. The Foundation announced it has committed to continue funding Arizona biosciences and coordinating the Roadmap as it enters its next chapter.

“We recognize this is a long-term pursuit,” said Jack Jewett, president and CEO of the Flinn Foundation. “We will continue to strive to improve the lives of Arizonans today and tomorrow through new medical discoveries, access to clinical trials and the recruitment of top researchers, while also attracting high-wage jobs that will strengthen Arizona’s economy.”

The Flinn Foundation is a Phoenix-based, private, nonprofit philanthropic endowment. It was established by Dr. and Mrs. Robert S. Flinn in 1965 with the mission of improving the quality of life in Arizona to benefit future generations. The nonprofit philanthropy supports the advancement of Arizona’s bioscience sector, the Flinn Scholars program, arts and culture, and the Arizona Center for Civic Leadership.

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Banner MD Anderson expanding

Banner MD Anderson Cancer Center on the Banner Gateway campus will break ground in January 2013 on an expansion of its outpatient cancer facility, offering a new service and additional equipment and treatment areas to meet the needs of its rapidly growing patient population.

The 111,000-square-foot expansion will take place to the south of the existing 130,000-square-foot building and will add:

·  Three linear accelerators (two at opening and one vault for future use) for a future total of six, used for external beam and internal radiation treatments
· 30 additional clinic exam rooms for a total of 60 rooms
· 13 additional infusion bays for a total of 53
· Expansion of Laboratory Intake Center and Welcome Center
· The Cox Center for Integrative Oncology and Cancer Prevention, funded in large part by a grant from the James M. Cox Family Foundation
· Dedicated space for the Stem Cell Transplantation and Cellular Therapy program
· Additional shell space for future expansion needs

“We’re proud to be living our vision of providing premier cancer services in the Valley,” said Todd Werner, CEO of Banner MD Anderson. “Our patients deserve nothing less than the best care and treatment options available.”

Banner MD Anderson will break ground on the $62.6 million expansion project on Jan. 22. The newly added area will open in spring 2014.

“We’re excited that we can expand our facilities and in turn, serve more people,” said Maggie Row, vice president of clinical operations for MD Anderson Cancer Network. “We look forward to enhancing our services in partnership with Banner Health and continuing to elevate the quality of care available in Arizona.”

Since opening in 2011, the cancer center has experienced rapid growth in outpatient volume. The center’s model of multi-disciplinary care, coupled with its relationship with The University of Texas MD Anderson Cancer Center in Houston, has attracted more than 5,000 patients and resulted in 50,000 patient visits since opening. In addition, more than 50 subspecialty physicians are now providing cancer care to patients in need.

The new Cox Center for Integrative Oncology and Cancer Prevention will incorporate traditional cancer treatments with evidence-based integrative therapies, such as relaxation techniques to aid in pain and/or stress management. The center will include individualized prevention, screening and diagnosis programs, rehabilitation and community outreach programs, and will also be an invaluable community resource for cancer prevention education.

Project architects are HKS, Inc. and the general contractor is DPR Construction.

Banner MD Anderson Lantern of Hope

The Lantern Of Hope Wins IALD Award Of Excellence

Banner MD Anderson Cancer Center’s Lantern of Hope positioned at the entry to Banner MD Anderson Cancer Center in Gilbert was recognized among 15 architectural lighting design projects throughout seven countries at the 29th Annual International Association of Lighting Designers (IALD) International Lighting Design Awards.

The ceremony was May 10 in Las Vegas.

Positioned at the entryway of the $109M cancer center, the award-winning Lantern of Hope’s vivid, uniform glow serves as a beacon of hope and a symbol of the center’s commitment to the eradication of cancer. Judges noted the subtle color usage as a distinct differentiating factor within the project as many times color is over utilized in lighting design projects. Judges also noted the exceptional execution and design composition of the silhouette lighting in the vertical tower and the even wash of the horizontal awning.

“Symbols of hope abound at Banner MD Anderson Cancer Center,” said cancer center CEO Todd Werner. “We are honored that our lantern provides inspiration among such prominent architectural lighting design projects across the world.”

The Lantern of Hope was created with accessibility, maintenance and longevity in mind. Robust, yet small scale, IP66 luminaries with long-life LEDs were selected to withstand the hard desert climate and are situated in a double row at the base of the four-story panel spans in single rows at the bottom of the single-story spans.

The panels cladding the structure were cut to represent the canopy of the Palo Verde tree, also known as the “nurse” tree, fittingly, and filter sunlight to the entry and balconies through a fabric scrim by day while being backlit at night to create an inspiring visual icon. Playful contrasts of light and shadow provide a soft, luminous space of transition to the building during the day and relaxing vantage points for the ever-changing natural light show are offered from adjacent second and third floor balconies.

Generally, the Lantern of Hope glows in lavender – the universal color for cancer awareness. Through the use of a DMX control package, Banner MD Anderson officials can also use the Lantern of Hope to communicate cancer awareness months, holidays and special events through smoothly fading color and kinesis.

In addition to the Lantern of Hope, the center was designed merging the “high-tech” world of medicine with the “high touch” needs of cancer patients to provide holistic care. The center’s unique environment also incorporates proven evidence-based design theories to enhance healing such as natural light, artwork, water features and views of nature. Patient and family amenities at Banner MD Anderson include an expansive lobby, outdoor balconies, large patient rooms and treatment areas as well as unique boutique retail services.

Architect for the Banner MD Anderson Cancer Center was Cannon Design. General contractor was DPR Construction.


Located at US 60 and Higley Road, the 130,000 SF state-of-the-art facility is housed on the Banner Gateway Medical Center campus in Gilbert. Banner MD Anderson joins Arizona’s leading health care provider with the nation’s leading cancer center to provide patients and their families the highest quality care possible. Top areas of patient care include medical oncology, radiation oncology, surgery, pathology, laboratory, diagnostic imaging and other supportive clinical services.

HCL Awards 2012 - Edgar Staren

HCL Awards 2012: Hospital Administrator, Dr. Edgar Staren


Hospital Administrator

Dr. Edgar Staren

Cancer Treatment Centers of America

Dr. Edgar StarenAs a CEO, surgeon and cancer survivor, Staren is the “triple threat” that cancer fears and patients look to for assistance. As a seven-year cancer survivor and renowned surgical oncologist, Staren not only brings an expert eye to all of his employee and patient responsibilities, he brings a spirit of empathy, compassion and hope that touches everybody he interacts with at CTCA. Staren is often found in employee huddles around the hospital, providing expert insight to CTCA employees and listening to their needs, or discussing the necessity of new technology or a procedure to ensure CTCA physicians offer the highest level of care to patients. However, the role Staren values most – cancer survivor – provides rare insight into CTCA patients’ day-to-day needs. It’s not uncommon to find him discussing the day’s events with patients during his rounds, offering advice when asked or just a sympathetic ear when needed. Staren is more than a CEO. He leads with an expert and empathetic hand and lives CTCA’s mission, vision and values every day in every task to ensure CTCA provides the life-saving care that its patients cannot find anywhere else.

cancercenter.com


Finalist

Pam Nenaber

Banner Health

Pam NenaberBesides leading one of the top performing hospitals in the Banner Health system, Nenaber served a critical leadership role during the planning, building and ultimate opening of the Banner MD Anderson Cancer Center, which opened in September 2011. Her leadership also fostered the successful integration of a team of more than 300 highly-specialized employees who now serve the community and its cancer care needs. In addition, Nenaber regularly mentors hospital leaders. Her most recent mentorship success was with a department director who was promoted to associate administrator at a sister Banner Health hospital.

bannerhealth.com


HCL Awards 2012 Winners & Finalists

AZ Business Magazine March/April 2012

RED Awards 2012 - Banner Health

RED Awards 2012: Developer of the Year, Banner Health

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Developer of the Year was Banner Health.


Developer of the Year

Banner Health

Honorable Mention for Best Healthcare Project: Banner MD Anderson Cancer Center

Banner HealthBanner Health continued its strategic investment in healthcare during 2011 spending hundreds of millions of dollars to ensure the healthcare needs of Arizona residents are met. In September, Banner Health opened phase one of its signature $109M Banner MD Anderson Cancer Center on the Banner Gateway campus in Gilbert. This 130,000 SF facility ushered in a new era of cancer care in Arizona.

In 2011, Banner Health also:

  • Began construction in Maricopa on the 80,000 SF Banner Medical Center, a public/private partnership with the city, creating $130M in economic impact over the next decade.
  • Expanded its pediatric unit at Banner Thunderbird adding 16 beds. The $1.5M expansion is part of a $290M campus expansion project that has added nearly 200 beds.
  • Opened a 100,000 SF, $21M new emergency department at Cardon Children’s Medical Center in Mesa with 103 patient spaces.
  • Began a $71M, 136,000 SF million expansion of Banner Good Samaritan Medical Center’s Surgical Services department.

bannerhealth.com


Video by Cory Bergquist


RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2011

RED Awards 2012 - Phoenix Children's Hospital

RED Awards 2012: Best Healthcare Project, Phoenix Children's Hospital

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Best Healthcare Project was Phoenix Children’s Hospital.


Best Healthcare Project

Phoenix Children’s Hospital

Developer: Phoenix Children’s Hospital
Contractor: Kitchell
Architect: HKS
Size: 760,000 SF
Location: 1919 E. Thomas Rd., Phoenix
Completed: October, 2011

Phoenix Children's HospitalPhoenix Children’s Hospital is the largest pediatric hospital in the Southwest and one of the biggest in the country. The facility embraces sustainability techniques. They include energy conservation through sun-shading screens found in each room, cutting an overuse of paper through online distribution and maintaining air quality while utilizing recycled materials. PCH was built to keep up with the expected growing population in Maricopa County. The team produced a pediatric hospital four months early and $50M under budget. Inspection and renovations were completed at night to avoid disrupting the neighboring hospital. Open forum meetings between the owner, architect and contractor with nearby residents contributed to the building productivity and swiftness. Before opening the facility, Kitchell executed an All-Systems Testing method that verified the effectiveness of every life-safety feature. The value and efficiency of this trial run led the Phoenix Fire Department Fire Safety Advisory Board to vote on implementing the All-Systems Test in every project that calls for a Fire and Life Safety Report. The project is a winner of the Valley Forward Merit Award – Environmental Technologies-Central Energy Plant, and the 2011 Modern Healthcare Design Award.

phoenixchildrens.com


Video by Cory Bergquist


Honorable Mention

Banner MD Anderson Cancer Center

Developer: Banner Health
Contractor: DPR Construction
Architect: Cannon Design
Size: 133,000 SF
Location: 2946 E. Banner Gateway Dr., Gilbert
Completed: June, 2011


Video by Cory Bergquist


RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2012

MD Anderson Cancer Center Lantern of Hope - AZRE Magazine September/October 2011

Banner MD Anderson Cancer Center Brings Hope, Treatment To Arizona

The MD Anderson Cancer Center on the Banner Gateway campus in Gilbert represents a new era of hope, treatment and care for cancer patients and their families.

And like many Banner Health facilities, the MD Anderson Cancer Center was designed and built with patient care in mind. Using the proven model called “evidence based design,” the center’s design is specifically built with healing and comfort in mind. Features such as a healing garden, a bistro-style café, a community learning center and even a boutique offering wigs and other personal items all work in concert to provide the best possible experience for cancer patients and their families. The facility, which opens Sept. 26, was designed by Cannon Design and built by DPR Construction — both leading firms with significant experience designing and building health care facilities.

The design also seamlessly merges the “high-tech” world of medicine with the “high touch” needs of cancer patients to provide care in a holistic way. Natural light, art work, water features and views of nature all work in harmony at the center. In addition, patients receiving chemotherapy and other infusion treatments will get this care in a bright, open environment with floor-to-ceiling windows that provide mountain views — patients can even receive treatments on outdoor balconies while enjoying the Arizona weather.

“We are here to offer hope, comfort and industry-leading care to cancer patients and their families,” said Pam Nenaber, CEO of Banner Gateway Medical Center and the Banner MD Anderson Cancer Center. “The design of our facility will enable us to serve the community well.”

A Medical and Architectural Marvel

Several years in the making, the 133,000 SF, $109M state-of-the-art facility will deliver an unprecedented level of cancer care in Arizona. The center is a collaboration between Phoenix-based Banner Health and the University of Texas MD Anderson Cancer Center in Houston. The center is MD Anderson’s first full clinical extension outside of Houston and will support the multi-disciplinary care approach pioneered at MD Anderson, continually ranked as a leading provider of cancer care.

“Building on an existing occupied campus can be challenging,” said Hamilton Espinosa, national healthcare specialist for DPR Construction. “With all projects, we work through phasing and logistics plans to ensure that construction does not impact operations, paying special attention to traffic and emergency vehicle operations.

“One of the unique elements of the building is what we call ‘the Lantern of Hope,’ a three-and-a-half story architectural feature at the main entrance. Made of Gore Tenara architectural fabric, which is the same fabric used for the retractable roof over Centre Court at Wimbledon, and cut aluminum panel, the feature lights up akin to a ‘beacon of hope’ and includes a water feature underneath to serve as a place for reflection.MD Anderson Cancer Center - AZRE Magazine September/October 2011

The Lantern of Hope was built by Chandler-based Kovach Inc., a nationwide exterior cladding contractor. Kovach provided the aluminum panels that make up the lantern’s distinctive silhouette. Starting with 30,000 pounds of raw aluminum, the panels took shape in Pennsylvania where they were milled into 38 massive plates. They were then transported to Minnesota where each one was cut into a unique pattern using a computer controlled high pressure water jet cutting tool.

Upon arrival in the Valley, each panel received structural fixtures necessary to mount them onto the lantern’s framework. As a final step, the panels were finished with a copper slag blast treatment to give them their final appearance, each weighing more than 700 pounds. The structure, which mirrors branch patterns found on the palo verde tree, rises nearly 60 feet above the center’s open-air entry area.

The design also presented an opportunity for Cannon to showcase its expertise in the project.

“Designing for a cancer patient varies quite a bit from designing for other typical healthcare patients,” said David Polzin, one of the design and planning leaders. “A cancer patient can access care over 100 times during the first year following diagnosis for surgery, radiation treatment, chemotherapy, physician visits, imaging scans, etc.

“When we first started this project, the client team was considering locating the cancer center on one of their downtown urban hospital campuses which would have been challenging for patients to access. During project, the client agreed that locating the cancer center on the Banner Gateway campus in Gilbert would provide better access for patients.”

The cancer center is sited and designed as a standalone building on the campus to provide convenience for patient access, Polzin said. A guiding principle for the building design was to merge the “high tech” with the “high touch” needs of cancer patients and their families. The building design includes simple wayfinding on each of the three floors, along with orientation to the desert landscape. For radiation patients who come for treatment over the course of 30 days in a row, convenient parking is located directly outside the center.

For infusion/chemotherapy patients whose treatment can last anywhere from two hours up to eight hours, the infusion center is located on the top floor with views to the mountains.

The Future is Now

The Banner MD Anderson Cancer Center will also inject some economic muscle into the state. Besides employing hundreds in well-paying health care jobs, the center is already attracting other health care and related industries.

A major hotel chain is planning to open a hotel nearby and other retail spaces are planned and in the works. The cancer center adds to a growing bio-medical cluster in Gilbert while town officials have been busy pushing the synergies health care operators bring to the region.

“The new Banner MD Anderson Cancer Center represents a major milestone towards our strategic goal of becoming a regional and national leader within the rapidly advancing life science industry,” Gilbert Mayor John Lewis said. “We’ve established new services, resources, and incentives to enhance our life science and business environment and attract organizations that will have a positive impact on our future economic growth.”

The Banner MD Anderson Cancer Center’s three-story outpatient facility will employ roughly 250 staff and 70 specially trained physicians. There are 30 multi-specialty clinic exam rooms, nine radiation oncology exam rooms and 40 infusion therapy stations. In addition, 76 inpatient rooms at Banner Gateway will be dedicated to cancer patient care. The center is the first of three phases — later plans call for an additional 200 SF expansion.

For more information about the Banner MD Anderson Cancer Center, visit MD Anderson Cancer Center’s website.

AZRE Magazine September/October 2011

 

Banner MD Anderson Cancer Center - AZ Business Magazine September/October 2011

Q&A Dr. Edgardo Rivera, Banner MD Anderson Cancer Center

Dr. Edgardo Rivera of Banner MD Anderson Cancer Center brings more than medical excellence to his leadership role — he brings his own life experience with the disease. Dr. Rivera’s brother died from cancer and his father is currently fighting cancer. These personal experiences, Dr. Rivera says, help in his understanding and sensitivity when dealing with his patients, families and colleagues.

As medical director, he is responsible for developing the Banner MD Anderson Cancer Center’s clinical vision, strategy and focus. In this role, Dr. Rivera directs all cancer program clinical activities and acts as the lead clinical representative. Dr. Rivera is a medical oncologist who most recently worked as the medical director at Methodist Hospital’s Breast Center in Houston.

Dr. Rivera explains his vision and goals for the Banner MD Anderson Cancer Center.

Q: What is your vision for the Banner MD Anderson Cancer Center?

“Our vision is that Banner MD Anderson Cancer Center will become a regional resource for cancer patients and their families. We will offer a new level of hope to those fighting this terrible disease. Each patient will receive a personalized care plan to meet their specific needs, designed by our highly skilled, compassionate staff.”

Q: What makes MD Anderson unique?

“For 70 years, MD Anderson has been defined by a single, powerful idea — to eliminate cancer through outstanding programs which integrate patient care, research, prevention and education. Now, this powerful commitment will be available in Arizona.”

Q: Why should patients choose to be cared for at the Banner MD Anderson Cancer Center?

“There are many reasons. First, our physicians at Banner MD Anderson are specially trained in cancer care and work closely with cancer experts in Houston. Our research-based treatment and advanced technology ensure patients receive the latest treatment options customized to their specific cancer. In addition, each patient has a team of experts who work together to tailor treatment plans based on the patient’s unique needs and guide the patient through the treatment process. Also, our nurses have special training or certifications in oncology care. The expertise level of all of our staff is exceptional as our team comes from the most respected and advanced cancer facilities in the world.”

Q: How will Banner MD Anderson Cancer Center’s care be similar that the model of care in Houston?

“Patients here in Arizona will receive the same type of care as patients in Houston. We will tailor our care to the needs of our local patients. As evident in Houston, we will treat the whole person, not just the disease, by incorporating personal and family needs into each patient’s care plan. It is a unique and highly-personal approach.”

Q: What influenced your decision to become a cancer physician?

“My brother was diagnosed with cancer when he was 26 and he died from the disease when he was 30. I knew then, I had to make a difference in people’s lives. This is a once-in-a-lifetime opportunity, and I’m proud to be a part of it.”

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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AZRE Magazine May/June 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