Botsford Hospital Announces $160 Million Renovation Project
Only months after announcing an affiliation with Beaumont Health, Botsford Hospital has announced that its Farmington Hills, MI, campus will receive a $160 million renovation.
Construction should begin next summer. “This has been overdue for a number of years as more and more patients in the surrounding communities rely on Botsford,” Botsford CEO Paul LaCasse told Crain’s Detroit Business.
The construction project will add a five-story tower and 80 beds, which will bring the hospital’s number of private patient rooms to a total of 160.
The emergency room and trauma center will also be expanded, and more critical care and observation units will be added. Additionally, the hospital will receive nine new operating rooms for further surgical procedures.
“Right now we are in a space that is too small. Our ER and trauma center has 65,000 patient visits per year. We need space for up to 88,000 because we expect volume to increase,” LaCasse said.
Eight hospitals have agreed to combine into Beaumont Health.
The merger, including Oakwood Healthcare Inc. and Botsford Hospital as well as Beaumont Health, was announced in the summer.
Part of the impetus behind the move was the fact that it would provide Botsford with greater access to capital for necessary renovations. “Access to capital is driving many of the consolidations in health care. The same is true for Botsford,” LaCasse said. “Our financial performance is good, our cash performance good, but we are not in position to invest in facilities and campus [improvements on our own].”
However, the merger is seen as being mutually beneficial. Brian Connolly, CEO of Oakwood, said a major goal of the affiliation will be greater operating efficiency. About $134 million can be saved by using a single electronic health record system and consolidating administrative duties, he said. Experts estimate that, in general, electronic medical records increase efficiency by about 6% annually.
But LaCasse emphasized that patient care will also be improved through consolidation of EHRs and increased continuity. “If you are a patient in Southeast Michigan, visiting [any Beaumont Health hospital or clinic], you will have a common record,” LaCasse said. “It will be passed from one organization to another.”