Jones Regional Medical Center (JRMC) knew that their 1960’s hospital needed a major upgrade to continue to meet the challenges of today’s healthcare delivery.
An exhaustive examination revealed that a replacement facility was the only logical alternative. St. Luke’s Hospital in Cedar Rapids, JRMC’s parent organization within the Iowa Health System, challenged JRMC to provide at least one-third of the total capital required in order to go forward with plans for a replacement facility.
The Plan: Acting as the developer, Russell purchased JRMC’s existing hospital campus for its appraised value. We then configured a lease-to-own agreement with two community partners, Community Care, Inc. (CCI) and Jones County Public Health and Administrative Center. The agreement consisted of the existing JRMC campus being renovated for use by these two community partners for a new residential care facility and an expansion of the Jones County’s center.
The project scope included the 46,000 s.f. replacement Critical Access Hospital on green field site including:
- Central nurses station
- 22 Private patient rooms
- Emergency Department
- Waiting Rooms
- Reception Area
- Laboratory
- Procedure / Physician Room(s)
- Offices
The Results: JRMC moved forward with the construction of their new $12M facility because of their success in raising more than one-third of the capital costs. St. Luke’s Hospital could adhere to its capital budget for this project while providing wonderful new opportunities for the community.
CCI was able to transfer its 30 residents from Edinburgh Manor into a vastly upgraded new home. Jones County benefited by helping these residents while saving operating capital for their own services.
Financial Benefits: JRMC saved approximately $1.5M in total resource costs. CCI saved $2-$3M in construction expenditures. Jones County saved at least $500,000.
Russell solved multiple challenges for three clients through one comprehensive solution, and in the end, the whole community benefited.
