H2C Advises Yuma Regional Medical Center on Its Selection of a Developer for a Pipeline of Medical Office Buildings and a Clinic
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About Yuma Regional Medical Center
Yuma Regional Medical Center is the largest primary care and specialty care medical group in Yuma County, Ariz. What began in 1958 as a 75-bed community hospital has now become a 406-bed acute care facility that offers comprehensive, state-of-the-art medical care and services to the residents of Yuma and the surrounding communities. The System employs a staff comprised of 2,400 people, of which over 550 are medical practitioners. YRMC’s primary value is “Patients Come First,” and its approach to care is patient- and family-centered. The advanced medical care and treatment options offered to patients have brought YRMC national recognition. The System generated operating revenues of $528.2 million in fiscal year 2019. Learn more at www.yumaregional.org.
About Hammond Hanlon Camp LLC ("H2C")
H2C is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate, and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. H2C offers securities through its wholly owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
Kelly T. Duong
Hammond Hanlon Camp LLC
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H2C CLIENT TRANSACTIONS
NEW YORK — Nov. 24, 2020 — Hammond Hanlon Camp LLC's (“H2C”) real estate team served as the exclusive advisor to Yuma Regional Medical Center (“YRMC” or the “System”) on a developer selection process to retain a developer to build a pipeline of planned medical office buildings and a clinic (the “Pipeline”) throughout Greater Yuma, Ariz.
The majority of the planned developments will be occupied by the System. The Pipeline will enable YRMC to bolster its capacity for surgery and care at its main campus, consolidate specialties to enhance efficiency of care delivery, and expand its services in the growing Foothills and San Luis markets. Each planned development serves a unique operational purpose for YRMC, with construction of the first two developments expected to begin before the end of this year.
YRMC is a 406-bed, not-for-profit hospital and healthcare organization located in Yuma, Ariz., that benefits from a unique market position as the only acute care provider within a 65-mile radius. When completed, the new facilities will allow YRMC to realize its vision for its outpatient strategy that will provide care to patients in convenient locations in growth areas while also enhancing the services offered at its main campus.
Through a highly competitive, thorough, and disciplined process, H2C attracted a number of submissions for the proposed pipeline from a diverse group of developers—both local and national. MedCraft was identified as the best overall fit for the System, balancing a strong yield-based rent with comprehensive resources, flexibility, and extensive experience in developing healthcare facilities across the country.
“With H2C’s assistance, we were able to find the right development partner to execute our vision for our health system and the Yuma region,” said David G. Willie, CFO for YRMC. “H2C’s knowledge of the healthcare real estate space and its developers allowed us to home in on the most qualified groups quickly and, using their competitive process, to reach agreement on very favorable terms for our System.”
“YRMC has embraced an ‘asset-light’ approach to its real estate, which means that it prefers to lease, not own, buildings as well as outsource the development of new buildings to qualified development partners. This approach to real estate allows the System ultimate flexibility without sacrificing control, faster out-to-market timing, and favorable balance sheet treatment,” said PJ Camp, Principal for H2C.
H2C Vice President Matthew Tarpley added “Our developer selection process was extremely competitive, which allowed us to drive the expected lease rate down, compare potential partners’ key considerations, and ultimately select the developer that was the best in class. The System will now be able to develop the planned Pipeline and realize its vision without any upfront capital.”
"With H2C’s assistance, we were able to find the right development partner to execute our vision for our health system and the Yuma region."
–David G. Willie