Allina Health said Monday it will invest $22 million to expand Mercy Hospital in Coon Rapids.
The Minneapolis-based health system said the new 120,000-square-foot building will feature the Virginia Piper Cancer Institute, as well as specialty care, outpatient surgery services and obstetrics/women's care. The four-story building will be across the street from Mercy, connected by a skyway.
Allina has gone through a mini building surge over the past three years, with at least six projects either in the works or already completed. They include a $50 million partnership between Children's Hospitals and Clinics of Minnesota and Abbott Northwestern Hospital for a Mother Baby Center in south Minneapolis, a $5 million to $8 million emergency department addition to the WestHealth facility in Plymouth, a medical clinic in Ramsey and the J.A. Wedum residential hospice in Brooklyn Park.
A recent report by Cushman & Wakefield/NorthMarq said the medical office market isn't immune to the economic downturn, but that the market's vital signs in the Twin Cities are stable.
This is partly due to the increased medical needs of aging baby boomers and the future effect of health care reform, as providers prepare for a surge in patients who were previously uninsured, according to the report.
The expansion at Mercy Hospital had been planned for some time. Jeff Peterson, Mercy's interim president, said the "project will enable the hospital to enhance patient care and expand the services offered in our community." That community includes northern suburbs stretching from Maple Grove to Blaine.
Amenities at the addition will include a patient dropoff entrance, additional parking, hands-free entrances, extra-wide corridors and an acoustically sensitive design to maximize privacy.
Ground will be broken in October, with the new building opening to patients in November 2013.
Frauenshuh HealthCare Real Estate Solutions is the developer on the project and will own the building, while Allina will own the land. Kraus Anderson Construction Co. is the general contractor and Pope Architect will design the project. Allina's $22 million investment will pay for its lease, furniture and equipment.
Janet Moore 612-673-7752