Capital Spending Reflects New Era in Healthcare

Rene Letourneau, for HealthLeaders Media , February 10, 2014

Reading Health is also spending on inpatient construction in 2014. "We are at the beginning stages of investing $350 million in new facilities," Jones says. The plans are mainly for a tower that includes surgical and perioperative suites and 100 new patient beds on the top floors and for operating room replacements.

"We will be replacing 24 existing ORs, six of which will be hybrid ORs," Jones says. "While we have continued to upgrade the equipment, the oldest of the rooms themselves were built in the '70s and are quite small. … It is time to invest in the facilities and build completely new surgical towers—structures that will allow us to have OR suites that can accommodate teams and equipment and that are also laid out in such a way to be able to manage those rooms much more efficiently and economically."

At South Nassau, plans are underway to renovate two medical units to convert 38 double-bed rooms to 23 single-bed rooms. "We are continually making investments here to update our existing plant to bring it up to today's standards," Bogen says.

The hospital will also construct an $80 million building for inpatient care within the next few years. However, looking ahead, Bogen says South Nassau will soon turn its capital spending attention to population health management and away from its brick-and-mortar assets.

"That strategic plan and how it relates to health reform and population health management will probably bring some real change as far as how we invest our capital in the future," he says. "This is certainly our last significant on-campus project for the foreseeable future."

Reprint HLR0214-10

This article appears in the January/February 2014 issue of HealthLeaders magazine.

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