Temple University Hospital Inc. paid $12 million for the buildings, equipment, and supplies of the former Cancer Treatment Centers of American location at 1331 E. Wyoming Ave. in Northeast Philadelphia, Temple executives told bondholders Thursday.
“This opens a significant and historic new chapter in our health system’s history — one which speaks to our improving clinical outcomes, operational efficiency, positive financial performance, and long-term strength of our organization,” Michael A. Young, president and chief executive of Temple University Health System, said in a June 29 news release on the completion of the acquisition.
One aspect that made the Juniata Park property attractive to Temple was how it included a 90,000-square-foot medical office building for back-office functions. These duties had been conducted in a Nicetown/Tioga building that was damaged in a fire last August, Temple officials have said.
Before being displaced by the fire, Temple had been paying $5.5 million in annual rent for 100,000 square feet of office space at the former Budd Co. property, Temple University Health System’s chief financial officer, Nick Barcellona, said during a call with investors in May.
The purchase removes the need to rent such space.
And Barcellona said it was unlikely that Temple would need all of the new space for administrative functions because some employees will work from home at least part of the time.
The purchase of the former cancer hospital includes relatively new hospital beds, X-ray, machines, and operating-room equipment.
Temple is working on plans to bring a mix of health care services to the Juniata Park site, which the city values for tax purpose at $18.4 million.
Just how good a deal did Temple get?
When Cancer Treatment Centers of American bought the former Parkview Hospital from Tenet Healthcare Corp. in 2004 for $5.14 million, it said it would spend $44 million to transform it from a 200-bed general hospital into a specialty hospital. Before closing this year, the hospital was licensed for 74 beds.