Unloading medical office buildings and other real estate can free up capital for renovations, according to an article on the Healthcare Finance website. But many hospitals and health systems are reluctant to relinquish control of medical office buildings.
However, when RWJBarnabas Health needed to renovate Clara Maass Medical Center in New Jersey, hospital leaders found funding in the form of medical office buildings that were located on the property. By unloading those buildings, RWJBarnabas could effectively free up the necessary capital for a much-needed intensive care unit to replace the one that was aging.
“We were fortunate enough to have three medical office buildings on the property that we managed," said Thomas Biga, president of the hospital division at RWJBarnabas Health. "When you look at invested capital, our goal is, 'How do we invest our assets in ways that benefit the patients?'"
By selling the auxiliary buildings, the system was able to replace the ancient ICU and also invest in a 180,000 square-foot entrance.
In a recent article from Building Operating Management on the FacilitiesNet website, facility managers discuss best practices for keeping renovation projects on budget and on time.
Major work on an existing building means dealing with one-of-a-kind existing conditions as well as a unique history that ranges from equipment performance to occupant experience.