Yale New Haven Health System

Hammes helped Yale New Haven evaluate real estate alternatives to better position the system to accommodate future growth. Hammes specifically looked at opportunities to improve operating efficiencies, lower occupancy costs and minimize real estate risk.

Location:

New York, New York

Opportunity:

  • Real Estate Advisory

Type:

  • Real Estate Optimization Plan

Size:

Approximately 700,000 SF (Total portfolio)

Background

Yale New Haven Health System is affiliated with the Yale University School of Medicine and is headquartered in New Haven, Connecticut.

Challenge

The system needed support reviewing its existing ambulatory services, identifying opportunities to consolidate fragmented and/or redundant services and quantifying the space implications of consolidating services. The goal of site consolidation was to reduce the system’s 200+ sites to a more geographically and service-oriented appropriate grouping of sites.

Solution

Hammes Healthcare conducted an in-depth real estate portfolio analysis for Yale New Haven Health. This included an in-depth study of the local real estate market to benchmark the system’s current facility costs and evaluation of the financial impact of pursuing various facility alternatives including the renovation of existing facilities, relocating to alternative leased space and development of a new, consolidated ambulatory facility.

Hammes also completed an analysis of the system’s real estate operations including alternatives for more efficient coordination, portfolio enhancement and integration/consolidation of non-core assets. Strategies were developed on an individual asset basis, which incorporated the system’s strategic, operational and financial objectives.

Yale New Haven Health benefited from the real estate optimization plan in the following ways:

  • Reduced lease costs and improved control of system real estate costs
  • Economies of scale and operational efficiencies (reduced total support staff shared space and overhead)
  • Larger, more visible and attractive branded sites that increased convenience for patients
  • Accommodated growth and promoted clinical group practice in combined flexible sites