On Monday night during the City and Borough of Juneau Assembly meeting, members OK’d appropriating $8.1 million in hospital funds to Bartlett Regional Hospital for the purchase of Juneau Bone and Joint Center’s buildings and property. (Clarise Larson / Juneau Empire)

On Monday night during the City and Borough of Juneau Assembly meeting, members OK’d appropriating $8.1 million in hospital funds to Bartlett Regional Hospital for the purchase of Juneau Bone and Joint Center’s buildings and property. (Clarise Larson / Juneau Empire)

City OKs $8.1M for hospital purchase of Juneau Bone and Joint property

The finalized purchase to be negotiated in the coming months, hospital officials say.

Bartlett Regional Hospital continues to rapidly expand its reach in Juneau’s healthcare ecosystem as it moves forward with plans to purchase the property and buildings that currently house Juneau Bone and Joint Center, a privately owned orthopedic practice.

At the Monday night City and Borough of Juneau Assembly meeting, members unanimously gave the OK for the municipal-owned hospital to appropriate $8.1 million of hospital funds to purchase the property which currently houses two commercial buildings.

The acquisition is only for the property and buildings Juneau Bone and Joint Center is located on, meaning the center — along with other private businesses that lease from the two buildings located on the property — would pay rent to the hospital, but would not be owned by the hospital.

According to data provided to the city by the hospital, the commercial lease income stream that Bartlett would receive from the acquisition would equate to about $55,000 to $60,000 per month, or $660,000 to $720,000 annually.

Hospital leaders say the acquisition will allow Bartlett to expand its clinical and healthcare administration space in the new facility — which is conveniently located on the hospital campus — and will allow for future expansion through building additions and construction and provide “immediate access to positive cash flow.”

The plans for the acquisition follow a steady stream of investments and purchases made by the hospital recently. Earlier on Monday the hospital announced it had finalized its acquisition of Wildflower Court, an independent nursing facility located on the hospital campus. In mid-June the hospital unveiled its new $18 million crisis stabilization center, the Aurora Behavioral Health Center.

Last August the hospital also approved $2.4 million of hospital funds to purchase the Family Practice building.

Bartlett CEO David Keith told the Empire after the meeting that the next steps in the anticipated acquisition of the Juneau Bone and Joint property will be to begin negotiations with the current owners, BBGH Development LLC, which he anticipates will take around two to three months.

“We’re excited and we look forward to negotiating the price,” he said. “The beauty of this property is it will be an incredible piece of property to the hospital campus and we need it because we’re trying to expand services. We’re looking forward to adding services into that building in the future.”

Hospital Board President Kenny Solomon-Gross shared similar excitement and said the hospital plans to “really do our due diligence” before finalizing the purchase.

• Contact reporter Clarise Larson at clarise.larson@juneauempire.com or (651)-528-1807.

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