KNOXVILLE, Tenn. — Amid a need for office space but with few options for expansion, East Tennessee Children's Hospital has acquired the UT Federal Credit Union property in Fort Sanders for $8.5 million.
Acquisition of the 22,440-square-foot building and parking lot at 22nd Street and White Avenue spares the hospital from having to use clinical space on campus for offices, said Steve Godbold, vice president and chief operating officer.
"If you look at our campus, we were pretty much landlocked," Godbold said.
The credit union is south and west of the hospital. A school, Fort Sanders Educational Development Center, sits to the north, but that wasn't an option.
That pretty much left the credit union building, which sits on a 1.37-acre site and features space for 68 vehicles. The acquisition process began last winter and was sealed in March, records show.
"For us, even at that price it was a no-brainer," he said.
The hospital will take over the second and third floors of the building in the spring. The credit union, however, will continue to operate its retail facilities in the building for up to another five years, according to President and CEO Debbie Jones.
"At that time we will evaluate options for a retail facility off Cumberland Ave.," Jones said.
If needed the hospital can build a sky bridge that links the credit union building across White to the rest of the campus.
The hospital has no other plans for additional acquisitions.
"You never say never," Godbold said, "but there are no immediate needs for us."
Children's, however, is intent on expanding urgent care services outside of Knoxville proper. Such out-patient centers are a trend in health care in general.
It most recently secured a lease for out-patient space for an urgent care and rehab at an old Ryan's Steakhouse on Winfield Dunn Parkway in Sevierville, Godbold said.
The hospital also wants to install a similar center in Blount County.
"We felt that's a great strategy to put these services out in the community around Knoxville," he said.
It also operates urgent care centers in West Knoxville and Powell.
East Tennessee Children's Hospital was founded in the 1930s. It now offers 152 beds for pediatric and adolescent care.