"Gloucester is a proud community with a lot of independent spirit. The community was fiercely behind Addison Gilbert.
College Street Partners was sensitive, creative, and uniquely honest in its ability to promise the community a better healthcare
facility while simultaneously saving Northeast Health millions of dollars. Now, that’s hard to find in a strategic partner!"
–Edward Holden, Director of Plant Operations, Addison Gilbert Hospital
Background
The Addison Gilbert Hospital (AGH) in Gloucester, Massachusetts has provided healthcare services to the Cape Ann Community for over 100 years. AGH’s 10-acre campus consisted of eight interconnected buildings of various ages, condition, and utilization.
Problem & Opportunity
AGH was experiencing high operating costs, operating inefficiencies, and ongoing significant capital outlays for plant improvements. Furthermore, NHS had to rationalize services and decide which services should move to its hub campus and which services should stay at Addison Gilbert. The financial ramifications of renovating, demolishing, or liquidating the real estate assets were a core part of NHS’s long-term vision.
Solution
NHS hired College Street Partners (CSP) as a strategic advisor to do a utilization study of Addison Gilbert’s existing facility. CSP revealed a 30% underutilization of the current space, a shortage of parking, and looming capital improvement expenses. CSP identified optimal amounts and locations of space for remaining, onsite services. Surplus space was exposed and analyzed for the highest and best market use.
Result
College Street Partners developed and implemented a master plan to:
- Monetize excess real estate by selling and renovating the building for allied physician practices
- Demolish obsolete buildings and add new parking spaces
- Re-design and renovate core hospital buildings for acute care and other essential services
- Reduce the design and construction costs throughout the design/ build phase of the project
- Win community-wide support by modernizing the core hospital, making a positive commitment to the community’s future healthcare services, and respecting the residential and medical character of the neighborhood
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