Kingman Regional Medical Center’s (KRMC) Board of Directors announced the purchase of approximately 160 acres of land near its Hualapai Mountain Campus from W.C. Kingman Crossing, L.L.C., who had purchased the site in January 2007 with plans to develop the area as a major medical and retail center. KRMC acquired the land for $5.3M – less than half of the acquisition cost approximately ten years ago.
In making the announcement, KRMC Chief Executive Officer, Brian Turney, shared the Board of Directors reasons for making the investment.
“First, we have already made a major investment in that area with the purchase of the Hualapai Mountain Campus. We continue to develop those medical facilities, which now house a specialty hospital for acute rehabilitation services, outpatient rehabilitation services, a pain management clinic, a new spine and sports injury clinic, and various support services. We anticipate more inpatient and outpatient services will be added over time and feel our purchase of additional land will allow more input in what is developed around the campus – whether medical or retail in nature.
Secondly, KRMC’s Board of Directors believes the economic health of both the City and KRMC are strongly interrelated. Over the past ten years, KRMC has been the largest driver of economic growth for the Kingman area – having quietly added over 800 jobs, many high paying, to the local economy. We now employ over 1800 individuals and are the largest employer in Mohave County. Economists indicate that the typical healthcare job adds two additional jobs to the local economy.
Although we have had success in bringing talented physicians and healthcare providers to our community, recruiting these types of individuals remains one of our biggest challenges. As we attempt to recruit these individuals and their families we find they are consistently looking for six things: good weather, good housing options, a strong school system, reasonable shopping options, a forward-thinking community, and working for a healthcare system that is committed to growing and improving. At this time, reasonable shopping options continues to be a stumbling block. Although people are now able to obtain many retail goods and services online, these types of professionals and others in the community still would like more retail, eating, and entertainment options locally. We believe successful development of Kingman Crossing can, to a degree, augment these options.
Thirdly, it was clear that the previous owners of the land were not in a position to facilitate the development of Kingman Crossing. We believe the purchase of the land removes a barrier to development and hopefully will provide opportunities to develop the land sooner rather than later. Obviously there are other factors that can affect the timing of development, but the Board of Directors feels we should do what we can to support the responsible development of the land. In doing so, it has the potential to significantly benefit KRMC and our community as a whole.
Finally, having an economically healthy hospital and health system is vital to the community. Having resources to grow and improve is vital. Many hospitals, including KRMC, are feeling the pinch as governmental payers continue to make cuts in reimbursement. About 80 percent of KRMC’s patients are insured by Medicare and AHCCCS (Medicaid). We regularly search for ways to trim costs and become more efficient, but feel we must develop additional revenue sources if we are to “thrive” and not just “survive” in the long term. We believe, in time, the Kingman Crossing investment can become an alternative source of revenue that will, in the long term, benefit KRMC, its employees, and our community.
KRMC looks forward to working with the community, its leaders, and others to develop plans that will help Kingman Crossing move forward in a thoughtful, responsible manner. Although there are hurdles to overcome, our Board of Directors believes Kingman is positioned to become an even more vibrant, growing community and this investment represents a significant commitment to make that happen.”