Fletcher Allen proposes to buy property in South Burlington for $51 million

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Fletcher Allen proposes to buy property in South Burlington for $51 million

Tue, 06/03/2014 - 12:55pm -- tim

Fletcher Allen Health Care filed a Certificate of Need (CON) application with the Green Mountain Care Board today seeking approval to purchase two parcels of real estate located adjacent to Hinesburg Road in South Burlington: the majority of the 92-acre Mountain View Business Park, containing Tilley Drive where Fletcher Allen leases two buildings, and an adjoining undeveloped 38-acre parcel. The proposed combined purchase price for both properties is approximately $51 million. A CON application is necessary when a proposed hospital expenditure exceeds $3 million.

“As the academic medical center partner of a four-hospital network, we must ensure we have the resources and flexibility to meet evolving patient care needs,” said John Brumsted, MD, president and CEO of Fletcher Allen Health Care and Fletcher Allen Partners. “Purchasing these properties would give us the opportunity to expand our campus in South Burlington to meet growing demand for outpatient services (a national trend), invest in a smart buy-vs-lease strategy, and preserve space on the Medical Center Campus for the most acute care needs.”

In a statement announcing the CON, Fletcher Allen said it remains committed to using its Medical Center Campus in Burlington for inpatient care and closely-related outpatient services.

A Master Facility Plan analysis demonstrated that it is prudent to invest in real estate now for future outpatient care use, as interest rates remain historically low. The analysis shows that purchasing buildings already occupied by Fletcher Allen, as well as non-Fletcher Allen occupied buildings, the associated land and adjacent property, will pay for itself within 19 years.

Like any careful family or business planning big projects, Fletcher Allen has been putting aside funds for the overall Master Facilities project. The institution is also in a good position to issue bonds or mortgage these properties.

Mountain View Business Park 

Fletcher Allen occupies two of the five buildings in the business park. One houses the Orthopedic Specialty Center; the other is occupied by the outpatient cardiology clinic, cardiac rehabilitation, endocrinology and the Pain Clinic. The other two buildings are occupied by an oral surgery practice and a mix of businesses. A fifth building on the site is owned by a private OBGYN practice and is not part of the proposed sale. The park is permitted to construct four additional buildings.

Adjacent Property

Like the business park, this parcel is already zoned for development. The purchase of the adjacent property is contingent upon completing all of the due diligence required to determine the feasibility of future construction on the site.

To learn more about Fletcher Allen’s plans, visit outpatient plans and the Master Facilities Plan page on the organization’s website. The Web site contains information on this and other major initiatives, such as the inpatient bed replacement project and the new Mother-Baby unit. This Master Facilities Plan page will serve as a hub of information about all of our Master Facilities planning efforts going forward.

About Fletcher Allen Fletcher Allen Health Care, together with our partners at the University of Vermont College of Medicine and the College of Nursing and Health Sciences, is Vermont’s academic medical center. Fletcher Allen, along with Central Vermont Medical Center, CVPH Medical Center and Elizabethtown Community Hospital, are members of Fletcher Allen Partners, established to develop a more coordinated system of care throughout the region. Fletcher Allen also serves as a regional referral center -- providing advanced care to approximately one million people in Vermont and northern New York -- and as a community hospital for approximately 150,000 residents in Chittenden and Grand Isle counties. For more information about Fletcher Allen, find us online at http://www.fletcherallen.org or on its Facebook, Twitter, YouTube, and blog sites at www.fletcherallen.org/socialmedia

Source: Fletcher Allen Health Care 6.3.2014. Photos by Vermont Business Magazine.