Valley Children's Hospital adding retail space to campus

MADERA COUNTY, Calif. (KFSN) -- New businesses could call the Valley Children's Hospital Campus home within the next two years.

Hospital leaders believe there are a number of reasons to bring commercial real estate to the area.

Valley Children's Hospital has an expansive property with room to grow, but growth takes additional funding.

The hospital's mission is to provide care for children, regardless of their family's ability to pay, which means they depend on payments from Medicare and Medi-Cal.

CEO and president Todd Suntrapak said more than 70% of their patients depend on Medicaid, and those payments don't cover the cost of care.

"We have not received an increase to our Medicaid rates in over a decade, and yet, our costs go up between eight and 9% every year," said Suntrapak.

Back in 2018, the board began to look for other revenue streams, settling on commercial real estate.

With 40 acres zoned for mixed-use between the current buildings, Children's Boulevard, and 41.

Crews are working to prepare the property.

Suntrapak said they have the infrastructure to build, including new roads.

Now, they're determining what kind of businesses they want to attract.

Restaurants, gyms, a hotel, and a grocery store are all up for consideration.

For nurses with only 30-minute breaks, they'll eagerly accept more food options nearby.

"We don't have a lot of options here just cause it's so far away," said Shelbie Holden, Valley Children's Nurse. "So, a lot of nurses right now are door dashing and trying to figure out other ways to get food options here so having something so close to be able to grab a different variety of food and dining options, not just for the staff, but for the families around here as well."

Hospital leaders say they saw the benefit of pairing up revenue and services for the hospital community.

"So to have the opportunity to create some things on campus that the staff value, they'll make their life easier," said Suntrapak. "They are going to be that much more energized and provide a better experience for the families that we care for."

Suntrapak said they are at various stages of talks with companies, so those businesses could open within two years.

Since it is early in the planning process, there is no estimate on the cost of the project yet.

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