Intensive Care: The Saint Joseph Heritage Project Comes to Life | FTI Consulting

Intensive Care: The Saint Joseph Heritage Project Comes to Life

SCL Health

Center for Healthcare Economics and Policy

June 20, 2015

Denver Construction SCL Health

Situation: SCL Health designed an ambitious capital improvement program during a time of economic growth. Then the economy took a nosedive.

Headquartered in Denver, faith-based nonprofit healthcare organization SCL Health operates eight hospitals, four safety net clinics, one children’s mental health center and nearly 200 ambulatory service centers across Colorado, Kansas and Montana. With $2.3 billion in revenue, the network employs more than 500 healthcare providers and some 15,000 full-time associates. Additionally, SCL Health regularly assists its local communities, having contributed over $220 million in community benefits through its services for the poor, including health screenings, educational programs, community donations and research in 2013 alone.

In 2007, SCL Health developed a five-year, $2 billion capital improvement plan to expand and modernize its facilities. Along with improving patient care and expanding programs offered to the communities being served, the capital plan focused on strategic projects to enhance market share in an environment where competing hospitals already had upgraded facilities and increased service offerings.

"FTI Consulting has been, and I know will continue to be, a strong partner as Planning & Construction continues to meet the challenges of our changing role with SCL Health. Thank you for your support and guidance."

Director, Project Controls, SCL Health

Executive changes and the economic slowdown in 2008 and 2009 drove SCL Health to adjust its approach to facility planning and construction in order to advance its modernization strategy and keep its expansion plans on track. This included restructuring SCL Health’s project teams and processes for greater oversight and control of capital expenditures to ensure program success.

FTI Consulting's Role: Helping control costs and minimize risk while keeping the improvement program on track in a challenging economic environment

Faced with intense regulatory, financial and competitive pressures, SCL Health turned to FTI Consulting’s Construction Solutions practice for assistance. FTI Consulting has an extensive record of providing facility development and construction advisory services to other leading healthcare systems across the nation. In addition, both SCL Health’s Vice President of Facility Development and its Director of Project Controls had previously worked successfully with members of FTI Consulting’s project team.

Based on proven relationships and results that FTI Consulting had delivered to other healthcare clients, SCL Health retained the Construction Solutions Practice in early 2009. FTI Consulting’s performance during this initial engagement led to a series of other projects in which FTI Consulting helped SCL Health develop and administer its construction contracts, enhance capital program controls, create systemwide project management policies and procedures, assess progress and manage construction schedules, all while controlling costs and mitigating risks.

Outcome: A stronger healthcare system, a healthier community

FTI Consulting’s services have enabled SCL Health to avoid project costs, take advantage of cost saving opportunities, and produced substantial cost recoveries. To date, FTI Consulting has helped SCL Health shepherd several major capital projects to successful completion.

During the course of the engagements, FTI Consulting’s Construction Solutions group assisted SCL Health with a variety of high profile facility development projects, including the $150 million expansion of its Lutheran Medical Center, the $40 million creation of two new patient care floors at St. Mary’s Hospital Century Tower and the construction of a new $17 million Good Samaritan Cancer Center. The largest project — a $623 million fast-track initiative to demolish the old Saint Joseph Hospital and replace it with a brand new state-of-the-art 826,000 square-foot facility — is being delivered on schedule and under budget. The hospital is slated to open in December 2014.

By monitoring costs, evaluating schedules, conducting benchmark studies, enhancing program controls, efficiently managing projects and facilitating the implementation of a centralized system to manage the systemwide capital improvement portfolio, FTI Consulting helped SCL Health modernize and expand in ways that have enabled the organization to fulfill its goal of providing responsive healthcare to communities across Colorado, the Midwest and elsewhere.

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Neil Gaudion

Senior Managing Director, Leader of Americas Construction Solutions