The Green Mountain Care Board conducts a site visit at the O’Brien Farm property that Fletcher Allen Health Care proposes to purchase. The Tilley Drive Mountain View Business Park, also under consideration, is visible across the field.

GMCB Tours SB Site Proposed for FAHC Expansion

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Thursday September 11, 2014

The Green Mountain Care Board made a site visit to South Burlington Wednesday, September 3, to view the properties that Fletcher Allen Health Care is proposing to purchase for future expansion of its outpatient facilities.

Fletcher Allen filed a Certificate of Need (CON) application with the Green Mountain Care Board in early June, seeking approval to purchase two parcels of real estate located adjacent to Hinesburg Road in South Burlington: the majority of the 92-acre Mountain View Business Park including four commercial buildings on Tilley Drive owned by Pizzagalli Properties LLC, and an adjoining undeveloped 38-acre parcel owned by O’Brien Family, LLC. The proposed combined purchase price for both properties is approximately $51 million.

A Certificate of Need (CON) application is necessary when a proposed hospital expenditure exceeds $3 million. The CON process is intended to prevent unnecessary duplication of health care facilities and services, guide their establishment in order to best serve public needs, promote cost containment, and ensure the provision and equitable allocation of high quality health care services and resources to all Vermonters. 

“As the academic medical center partner of a four-hospital network, we must ensure we have the resources and flexibility to meet evolving patient care needs,” said John Brumsted, M.D., president and CEO of Fletcher Allen Health Care and Fletcher Allen Partners. “Purchasing these properties would give us the opportunity to expand our campus in South Burlington to meet growing demand for outpatient services (a national trend), invest in a smart buy-vs.-lease strategy, and preserve space on the Medical Center Campus for the most acute care needs.”

Fletcher Allen already occupies two of the five buildings in the business park. One houses the Orthopedic Specialty Center; the other is occupied by the outpatient cardiology clinic, cardiac rehabilitation, endocrinology and the Pain Clinic.

The other two buildings are occupied by an oral surgery practice and a mix of businesses. A fifth building on the site is owned by a private OBGYN practice and is not part of the proposed sale. The park is already permitted to construct four additional buildings.

The adjacent parcel, which is part of the O’Brien Farm, consists of 38 acres between Tilley Drive and Kimball Ave. This property is already zoned for development, as is the business park. The purchase of the O’Brien parcel is contingent upon completing all of the due diligence required, including Act 250 permitting, to determine the feasibility of future construction on the site.

At this time FAHC doesn’t have a timeline for development of the properties, but estimates that they may be able to begin moving selected services in 3-5 years, assuming all necessary approvals are received.