First Choice ER, LLC / Dignity Health
The property, built in 2014, is a 38,900 SF hospital located on 3.92 acres in Phoenix, Arizona and leased to First Choice ER, LLC, a subsidiary of Adeptus Health, Inc. (NYSE: ADPT). The hospital has three lines of service: General Services, Inpatient Services, and Surgical Services, and houses a full service emergency department, a surgery center, a sixteen-bed acute wing, four multi-organized service unit beds, a diagnostics imaging department, an on-site laboratory, and an on-site pharmacy. During the construction process, ElmTree provided 100% of the capital, monitored construction on a monthly basis, and processed all construction draws.
Mission Critical Nature:
First Choice ER, LLC performs thorough and extensive market due diligence and research on each site it considers for its emergency care facilities. Each analysis considers several key data including demographic statistics, three and five year population growth estimates, ER void per day, primary traffic counts, and secondary traffic counts, among others to identify markets and communities that have limited access to emergency medical care. Each site is then selected on the basis of providing emergency care to the most underserved markets and communities. First Choice utilizes a “hub and spoke” model with its ERs and larger hospitals. The program centers around a hospital with the various freestanding ERs acting as the spokes. Any procedure that is too complicated for the freestanding ER gets referred to the hospital. The key advantage of the hospital is it allows Adeptus access to Medicare, Medicaid, and Tricare government pay across all of its facilities in the market, including the freestanding ERs that are licensed under the brand. Dignity Health has publicly stated that it expected to spend approximately $75.0 million to develop and open Arizona General Hospital.