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News release

CHICAGO, IL

Adventist Health to Advance Operational Efficiency with 8.1 MSF Real Estate Outsourcing of 19 Hospitals in Four Western States

New partnership with JLL will create centralized systems and processes and drive operational savings


CHICAGO, Sept. 18, 2013 — In an era marked by rising costs, change and uncertainty, healthcare systems are looking at new ways to reduce expense and drive bottom line profitability. Adventist Health, a system of hospitals and related facilities in four western states, is advancing its corporate agenda to drive operational efficiencies that improve their patients’ experiences by outsourcing the real estate and related management of its 8.1-million-square-foot portfolio to Jones Lang LaSalle. This move allows Adventist Health to achieve several performance advantages including: to centralize real estate and related facilities operations; apply widely accepted best practices both from within healthcare and the corporate sector; and create greater efficiencies and cost savings from its 8.1 million square foot portfolio of owned and leased space. The health system operates 19 hospitals with more than 2,700 beds located in California, Hawaii, Oregon and Washington. It has engaged Jones Lang LaSalle’s (JLL) Healthcare Solutions group to provide real estate and related consulting services designed to significantly enhance profitability.

“For the past year, Adventist Health has concentrated on a comprehensive strategy designed to keep our system competitive while transforming the health care experience,” said Bill Wing, Senior Vice President, Adventist Health. “To deliver on that goal, we have partnered with JLL, a leader in the real estate services industry. Together, we will maximize efficiency, transparency and responsiveness to patients, staff, physicians and the community—ultimately enabling our team to do what we do best: improve the health of people and communities.”  

The collaborative initiative between JLL and Adventist Health will leverage JLL’s healthcare expertise in facilities, transaction and project management as well as lease administration and occupancy planning. In addition, JLL will provide enhanced expertise on the environment of care, life safety, emergency management and regulatory compliance--all areas that enhance efficiencies and the overall patient experience. The long-term goal of the partnership is to generate substantial cost savings and operational efficiencies over the course of the 10-year contract.

“Today’s healthcare environment, with shrinking margins, increased competition, lower reimbursements and other financial pressures, warrants that systems proactively identify and capitalize on opportunities to create greater efficiencies and reduce costs,” said Richard Hunt, managing Director of Jones Lang LaSalle’s Healthcare Solutions group. “Sophisticated systems like Adventist Health are turning to their real estate and related functions as a source of opportunity, allowing them to focus on mission critical activities:  patient care.”

Adventist Health, based in Roseville, Cal., includes more than 170 clinics (hospital-based, rural health and physician clinics), 14 home care agencies, seven hospice agencies, and four joint-venture retirement centers. Adventist Health has a total workforce of 28,700, including more than 21,000 employees, 4,500 medical staff physicians, and 3,000 volunteers.

“When systems outsource their real estate and plant operations to JLL, they obtain performance- enhancing technology and practices that add value to an organization, quickly,” said Pete Bulgarelli, Executive Director of JLL’s Healthcare Solutions group. We will combine an outstanding Adventist Health staff with JLL’s expertise to create an industry leading real estate platform that supports Adventist Health’s core mission”.

JLL’s Healthcare Solutions group now third-party manages 135 hospitals, almost 10,000 beds and more than 25million square feet of hospital and healthcare related real estate for clients including Kindred Healthcare, Charleston Area Medical Center and Adventist Health. The firm has more than 650 healthcare professionals supporting its clients.

Jones Lang LaSalle’s Healthcare Solutions group  partners with hospitals and healthcare systems throughout the nation, delivering comprehensive inpatient and ambulatory facility management, strategic consulting, real estate capital advisory, program management, property management, transaction services, lease administration and energy/sustainability advisory services. Through its work, the Healthcare Solutions group connects healthcare business strategies to real estate solutions, driving efficiencies and enhancing quality.  For the last five years JLL has been ranked among the top five development firms in the Modern Healthcare Magazine’s Design & Construction Survey. For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s U.S. media center Web page. Bookmark it here:  http://www.us.am.joneslanglasalle.com/UnitedStates/EN-US/Pages/News.aspx

For information specific to healthcare, please visit:  www.us.am.joneslanglasalle.com/healthcare.

About Adventist Health
Adventist Health is a faith-based, not-for-profit integrated health care delivery system serving communities in California, Hawaii, Oregon and Washington. Our workforce of 28,900 includes more than 21,200 employees; 4,500 medical staff physicians; and 3,200 volunteers. Founded on Seventh-day Adventist health values, Adventist Health provides compassionate care in 19 hospitals, more than 170 clinics (hospital-based, rural health and physician clinics), 14 home care agencies, seven hospice agencies and four joint-venture retirement centers. Visit AdventistHealth.org for more information.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.