Bayfront Buyer Orlando Health Aims To Own The Interstate-4 Corridor

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Bayfront Health St. Petersburg plays a key role in the future of Orlando Health.

The Orlando-based non-profit, which expects to close on its purchase of Bayfront this week, wants to capitalize on the Interstate 4 corridor, from Daytona Beach to Florida’s west coast, said Bernadette Spong, chief financial officer.

“Our growth strategy is to own the I-4 corridor,” Spong said during an investor presentation for a bond issue planned by Orlando Health. “That goal of achieving the I-4 strategy or I-4 dominance continues to be something we are focused on, and St. Petersburg helps us.”

Orlando Health is offering $515 million in bonds, with some of the money raised used to finance the purchase of Bayfront. Neither Orlando Health nor the hospital’s current owner, Community Health Systems, has disclosed the purchase price. The deal is scheduled to close Wednesday, and Orlando Health’s new leadership team will take over on Thursday.

“We are very excited about the opportunity to bring the Orlando Health culture to St. Petersburg,” Spong said. “Bayfront is actually older than Orlando Health. It’s about 110 years old. Orlando Health is about 103 years old. We see a lot of opportunities to improve the healthcare that’s provided at Bayfront and the market growth … We are poised and ready to grow that market share in Pinellas County.”

Bayfront Health St. Petersburg

Bayfront Health, at 701 6th St. S., is the largest hospital in St. Petersburg, with 480 licensed beds and a level two trauma and tertiary care center. The hospital reported a net loss of $10.5 million on $236.9 million in operating revenue in 2018, according to the most recent Florida Health Market Review.

The Covid-19 pandemic made Orlando Health realize the importance of geographic diversity.

“Central Florida was hit pretty hard with the closing of the theme parks and tourist industry and we realize and recognize the importance of diversifying our footprint into the western part of the state,” Spong said.

“Orlando Health’s financial performance tracks patient volume closely,” said John Miller, vice president of finance. “Through February, the system’s volumes were high and operating margin was above 10 percent. But the system posted volume declines and operating losses in March through May, as Disney, Universal and other tourist attractions shut down, stay-at-home orders were issued and elective surgeries were put on hold. When theme parks reopened, stay-at-home orders were lifted, and elective surgeries resumed, volumes started going up and operating performance was strong in June through August.”

For the nine months ended June 30, Orlando Health reported $2.56 billion in net patient revenue and $228.5 million in income from operations. Orlando Health is heading into the Bayfront deal well-prepared,  with lessons learned from a brief affiliation with Lakeland Regional Health.

“The Lakeland leadership didn’t have a good understanding of what the transaction required,” said Sponge. “I think we are much wiser and are doing things in a more consolidated fashion, and being very open with the leadership as to what to expect with the consolidation and the acquisition effort that we didn’t do with Lakeland. We learned a lot with that experience and I think that will benefit us down the road. The deal with Bayfront is not identical, she said, but Bayfront’s seller, Community Health, has been divesting hospitals around the country and knows what it is getting into.”

Orlando Health itself is a turnaround story.

“When John and I got to Orlando Health about five years ago, they had a loss in 2012 or 2013, and they were looking to be bought,” Sponge said. “They had a poor balance sheet, terrible income statement, no real strategic growth plan, no strategy really. We have come in, we have strengthened the balance sheet. We are very proud of what we have accomplished. Credit agencies have recognized that Moody’s Investors Services assigned A2 ratings to the new bond issue and S&P Global Ratings assigned an A+ rating. Both are investment grade ratings. Both agencies have a stable outlook on the bonds.”

“S&P’s rating reflects “multiple years of very strong operation and cash flow,” Stephen Infranco, credit analyst, said in a news release. “The management team has successfully guided the organization over the past five years and is positioning the health system to compete effectively in a challenging landscape and competitive market.”

Moody’s also acknowledged the system’s strong historical performance, but said the Bayfront deal adds some risk, because Orlando Health is entering a new market.

“Integration into Orlando Health and building a clinical foothold will be integral to improved and durable financial performance in this very competitive Tampa-St. Pete market,” Moody’s said.

Orlando Health expects to price the bonds on Wednesday, with the expected settlement date as early as Wednesday, Oct. 7.

Bonds are used by corporations, government entities and others to finance projects and operations. They are a type of financial instrument that represent a loan made by an investor — often big institutional investors such as pension funds or endowments — to the borrower. They are typically sold in large increments, often $1,000 or more.

 

Source: St. Pete Catalyst

Cambridge-Based BioLabs Selects Dallas Site For Central U.S. Hub

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Dallas-Fort Worth‘s 23-acre Pegasus Park office campus is the future landing site for life sciences firm BioLabs’ central U.S. hub.

Cambridge, Massachusetts-based BioLabs plans to open BioLabs at Pegasus Park inside the under-development Pegasus Park campus. The future tenant also plans to occupy private lab and office space at the site.

The redeveloped Pegasus Park near Stemmons Freeway in Dallas (PHOTO CREDIT: Small Investments, Lydia Hill Philanthropies and GFF)

Pegasus Park is the brainchild of J. Small Investments and Lyda Hill Philanthropies, which partnered to transform a former ExxonMobil office campus into a mixed-use development with specialty hubs and office sites dedicated to life sciences, biotech and philanthropic tenants.

To date, CoStar Group has identified 188 sites in DFW dedicated to life sciences tenants, with over 15,000 employees.

“The largest tenant so far is Alcon Laboratories, which occupies 1.6M SF at 6201 South Freeway in Fort Worth. Other DFW life and medical sciences tenants include Stryker, Abbott Labs and Pfizer,” CoStar Group Director of Market Analytics Paul Hendershot said. “With a rich history of technology and innovation, Dallas-Fort Worth is in a strong position to grow its already robust life sciences industry cluster.”

Still under development, the new life sciences campus sits off Stemmons Freeway between Southwestern Medical District and the Dallas Design District. J. Small Investments acquired the campus in 2015 from ExxonMobil and intends to convert the site into a mixed-use development offering 550K SF of office space, with a biotech hub featuring 37K SF of lab and training space.

“BioLabs is one of the biggest names in the biotech startup industry. Their decision to choose Dallas as their first location in the central U.S. is significant for our city, region and state,” CEO of LH Capital Inc. and Lyda Hill Philanthropies Nicole Small said in a statement.

 

Source: Bisnow

Four Creative Solutions From Other Industries To Be Utilized In Healthcare Design

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Across various industries architects and designers are adapting their designs to accommodate new needs like additional space or include durable materials ideal for increased cleaning.

These new fundamental needs have inspired designers to seek innovative solutions that help the peace of mind for those accompanying the space. Learn from these four industry applications and how they can be utilized in healthcare design.

1. Cleanable Sound Barriers

As social distancing barriers come in many forms are being implemented in corporate offices, it can be replicated in healthcare design as well. The commonly seen plastic barrier divider or fabric curtain may allow for easy cleaning but does not have great acoustical properties. The best of both worlds come in the form of a fully encapsulated panel that absorbs high levels of sound are ideal. For hygienic wall panels or acoustical ceiling tiles, check out Saint-Gobain Ecophon Hygiene™ that is great for absorbing sound with the ability to sterilize too. They are even bleach-cleanable and have proven reliable to aid a turn over a patient room with optimal clean. An excellent option for healthcare to control sound beautifully with an ease of cleaning.

2. Freshness From Wall To Wall

Many international hotel brands have amplified their cleaning protocol and are finding new ways to comfort guests outside of their homes. With every surface material being disinfected frequently, it’s important to source materials that do not breakdown with excessive cleanings. An area that may have been overlook in the past are the walls in hotel rooms, lobbies and hallways. Select a highly durable wall solution like DuPont™ Tedlar™ Wallcoverings is an excellent solution. Tedlar™ Wallcoverings are mold and mildew resistant and can withstand even the harshest chemicals without cracking the surface.

3. Fade-Resistant Exteriors

With project budgets tightening, the need to keep designs timeless with a contemporary feel is increasingly important. A fade resistant exterior using an architectural fabric that is long lasting helps with less frequent renovations in the future. From Napa Valley wineries to East coast universities, Shelter-Rite® by Seaman has created structures that protect people and their facilities for decades. Reimagine elements of healthcare facilities, such as a sparkling white tent entrance to a medical center or a trendy tensile fabric stretched overhead in an outdoor hospital corridor or café. The UV-fade protected colors allow designers to match the exterior of the buildings or tie the interior shades to the outside

4. Disinfecting Every Surface, Even Mile High

Just like hotels, the airplane industry is coming up with new ways to comfort travelers with increased cleaning after every flight. Major airlines are making headlines with the new cleaning chemicals being adopted to combat the COVID-19 virus. Yet what may come as a surprise to many frequent flyers, is that the cabin surfaces are protected with a superior film that slows the growth of bacteria. From the sidewalls to the bulkhead partition, these areas are covered by Tedlar® PVC films. The thermoform capabilities of Tedlar® are ideal to the many curves and bends on the airplane interiors. This same film can be applied to the case goods in medical facilities, or the flooring of the hospital.

 

Source: healthcare design