Frederick Health purchased the State Farm campus and plans to make it the new destination for its home health care services and hospice, among other administrative offices.
The purchase was recently completed, Frederick Health Hospital CEO Tom Kleinhanzl said Friday.
The hospital paid $48 per square foot, he said, which makes the sale around $18 million. It was purchased through borrowing. No donor dollars were used, he said.
In 2013, State Farm sold the property, near Monocacy Boulevard in Frederick, for approximately $30 million to an equity firm, which kept it for about five years. The building was valued by the state in January 2018 at around $38 million.
The new location, to be named Frederick Health Village, will also have a new Frederick Health Call Center, which will help improve access to Frederick Health’s services, according to a press release from Frederick Health Hospital, formerly known as Frederick Memorial Hospital.
Discussions to expand into a new building had been going on for a while, Kleinhanzl said, with the hospital looking at leasing space before ultimately opting to buy a new property. Frederick Health Hospital is not moving, he said.
Before any services can move, the building needs to be modified to adjust for better Wi-Fi, computer cabling and other safety features.
The new property will allow for more expansion at the hospital, he said. The hospice and home health offices are planned to move in spring 2020. And in summer 2020, the hospital plans to start an expansion of its cardiac catheter laboratory, as well as upgrade its 20-year-old intensive care unit and update areas of its emergency department.
The goal of the purchase is to simplify access to hospital services, while also allowing for future service growth and expansion of the services already provided at the hospital, according to the press release.
While there are some ideas for what will go into the property, the hospital does not have set plans, outside of the hospice, home care and call center. It might also be the home of training centers, according to the release.
Another idea could be the expansion of telehealth and virtual health services, which are expanding in the health care system overall.
It is a property the hospital plans to develop over the next 10 years, so what the building will be used for is still being discussed and has the potential to change to meet the community’s needs, Kleinhanzl said.
“Now, the creative and interesting side of this can really begin relative to that intermediate and longer-term planning and thought process around how can we really leverage this site to achieve the health and wellness things we want to do in the community,” he said. “That’s the fun part. That’s what’s going to start now. So I don’t have a list to give you 100 things that we want to do out there, I can tell you we have a lot of great ideas.”
As of right now, the focus of the building will not be clinical, although that could change, he said.
The purchase announcement comes less than a month after the hospital and its overarching health care system announced a rebranding effort, as well as a new mission.
What can be accomplished at the new space follows the new mission to promote the well-being of the community, Kleinhanzl said.
“So it’s very important to the health system as a whole relative to growth for doctors, growth for outpatient clinics, growth for wellness programs, growth for you, whatever, anything, all those sorts of things,” he said. “So it fits very nicely in the greater scheme of all the things we’re trying to do in the community.”
The name Frederick Health Village comes from the idea of having many services in one location. Villages also expand and grow as the community does, Kleinhanzl said, similar to how the new building will change to meet community needs.
And yes, the address will change from 1 State Farm Drive, said Kelsey Shupe, a spokeswoman for the hospital. A new address has not been determined.