A 443-acre community development featuring retail, housing and recreational amenities is coming to Valley Children's Healthcare in Madera, Calif.
The health system shared plans for a major community development project, dubbed "The Hill," in an Aug. 29 news release. When complete, retail, hospitality, recreation and residential districts will surround Valley Children's main campus. Cost estimates have not yet been determined, a spokesperson told Becker's, adding the planning process is still in early stages.
The health system is in talks with potential partners and contractors to construct the districts in phases, a spokesperson said. An exact timeline on construction and completion has yet to be determined.
Plans for the residential district include up to 450 apartments and townhomes, while the retail district will feature at least 30 shops and a grocery store in a village-style environment.
Revenue from the project will support the healthcare system's ability to maintain and grow operations, "far beyond what the hospital will receive in reimbursement from state/federal programs and commercial insurance payouts," Valley Children's said in the news release.
"Our patients and families need more than a hospital and we need to ensure there is a sustainable financial future for Valley Children's," said Todd Suntrapak, president and CEO of the pediatric health system. "We have spent the last decade creating a solid foundation for Valley Children's, one that's absolutely vital in an era when so many hospitals in the Valley have had to sell, reduce services or close."
The healthcare system in California's Central Valley is fragile, with several hospitals on the brink of closure, leaders told Becker's last year. One of the largest financial challenges for many hospitals is dependence on state and federal programs such as Medicare and Medicaid, which don't reimburse providers nearly as much as commercial insurers. At Valley Children's, more than 72% of patients are publicly covered.