St. David’s HealthCare plans to funnel more than $275 million into the Central Texas health care infrastructure during the next two years.

Plans include a new hospital in North Austin, a $50 million expansion at St. David's South Austin Medical Center, a $70 million expansion at St. David’s Medical Center and a $20 million investment for a new hospital in Leander, the company announced May 13.

The changes mark a milestone for St. David’s HealthCare, president and CEO David Huffstutler said.

“Very recently we’ve reached a point [at our existing facilities] where we’re at or about to exceed capacity," he said. "We work very hard to provide the best in care and service, … and I think this is largely a response to the demand we’ve seen from [the community]. They’ve specifically voted with their feet, and that’s why we have the capacity restraints we have today."

St David’s HealthCare is a joint venture partnership among the local nonprofit St. David's Foundation, Georgetown Community Health Foundation, and the Hospital Corporation of America. No philanthropic dollars will be used to support the projects, Huffstutler said.

"We’re in a rapidly changing system generally in health care and there are a lot of dynamics at play there," he said, adding if St. David's focuses on fundamentals, remains cost-conscious and focuses on its growth, it will be able to adapt as payment and delivery models change.

St. David’s has more than 8,700 employees and expects to hire approximately 600 new employees—250 now, with an additional 350 during the next five years—regionally. Austin Mayor Steve Adler said in a statement that the organization brings top-quality health care to the Austin area.

New hospitals


The 146,381-square-foot North Austin hospital will open on an 8.5-acre property and include an 80,000-square-foot medical office building next door.

The new North Austin hospital is expected to bring about 130 new full-time jobs to the area when it opens, according to St. David’s. The hospital will have 40 patient rooms, 10 operating rooms, a six-bed intensive care unit and an emergency department.

St. David’s has also acquired approximately 52 acres of land in Leander pending final agreements with the city of Leander. The company plans to invest $20 million and construct the facilities in phases, starting with an 11,200-square-foot freestanding emergency department to be completed in 2017.

The company plans to hire 25 employees to staff the center during its first year, and other plans for the site include a medical office building and an 80-bed hospital that would result in the creation of more than 200 jobs.

"We expect that very soon we will be developing plans for the full-service hospital in that community," Huffstutler added. "It has been good to work with the city so far."

Expansions


This summer, St. David’s Medical Center will see a $70 million expansion of its cardiac electrophysiology program, medical/surgical bed capacity and intensive care unit bed capacity. The project is slated to be completed within the next 18 to 24 months, and once it is completed the center will have more than 462 beds for patients and 19 operating rooms.

St. David's South Austin Medical Center expansion St. David's South Austin Medical Center at 901 W Ben White Blvd. will expand as a result of investments announced May 13.[/caption]

A $50 million expansion project is slated for St. David’s South Austin Medical Center and is expected to be completed in late 2017 or early 2018. The emergency department at the hospital will increase in size by nearly 14,000 square feet and add a new floor on top of its South Tower consisting of 26,000 square feet and including a new 34-bed medical and surgical unit. The hospital will hire 50 new full-time employees in the first year, with plans to double that number within five years.

Huffstutler said the planned expansions should not have any significant impacts on current patients or staff, and at this time St. David's does not anticipate closures as a result of the construction plans.

The company also opened a $7.7 million intensive care unit, or ICU, expansion to patients at St. David's Georgetown Hospital on May 6. The expansion increased the ICU from 2,200 square feet to 11,500 square feet and includes 10 critical care beds to help care for an increasing patient volume, according to the company.