Lee Health’s $481M plan to reshape care delivery

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Fort Myers, Fla.-based Lee Health has taken a major step in advancing its long-term strategy to strengthen the care continuum, President and CEO Larry Antonucci, MD, told Becker’s.

In January, the system broke ground on a new $481 million healthcare campus, which will include an acute care hospital and a medical office building. The Lee Health Fort Myers Hospital will have up to 168 beds, including 24 ICU beds and a 44-bed emergency department.

“One of the critical parts of our strategic vision is providing care through the continuum for key service lines that will have the most acute need in the community,” Dr. Antonucci said.

Musculoskeletal is among those key areas. The new medical office building will house the Lee Health Musculoskeletal Institute, which will offer orthopedics, rheumatology and rehabilitation services.

“Having a single site that includes medical offices, rehab centers, an ambulatory surgery center and an inpatient hospital will enhance our ability to provide service line care from beginning to end, breaking down the traditional silos of care,” Dr. Antonucci said. “We want this to be more patient-centered and viewed from their perspective.”

The new facility is expected to open in the first quarter of 2028, with Lee Memorial Hospital continuing to provide care until the new hospital is operational.

Expansion strategy, post-private conversion

Lee Health converted from a public system to a private nonprofit on Nov. 1, following more than a year of public input, an independent assessment and town halls. Since the transition, leaders have re-evaluated the system’s three- to five-year strategy, including plans to expand beyond Lee County.

“One of the things that we discovered in the analysis of conversion is that 20% of our patients come from outside Lee County,” he said. “Now we’ll have the ability to provide care closer to their homes with outpatient sites and other services.

Located in the fast-growing Fort Myers area, Lee Health regularly evaluates population trends, demographics and use rates when planning new facilities or expansions, Dr. Antonucci said.

“As we evolve to more of an outpatient world, we know that inpatient utilization is decreasing,” he said. “We have to take all that into account, and at the same time, look at what’s happening in our marketplace regarding other providers.”

As other systems plan hospitals in the region, Dr. Antonucci emphasized avoiding unnecessary duplication of resources.

“The one thing we don’t want to do is over-bed a community,” he said. “It’s not good for the community, and it’s certainly not good financially. But we always have to balance that against having adequate capacity for inpatient care.”

The new campus also allows for future growth. While Lee Health will begin with 168 beds, it is assessing whether to initiate the next shell buildout now or in a later phase.

Areas of focus for 2025

Staffing remains a top priority. Much of the new campus’ workforce will transition from Lee Memorial, and Dr. Antonucci does not anticipate significant challenges during that process.

To support long-term workforce needs, Lee Health is expanding its internal medicine residency program. A new flex-year track at Cape Coral Hospital supports physicians preparing for subspecialties, and the system is working with a consulting group to expand the program to Gulf Coast Medical Center, its largest campus.

Budget concerns are also a key focus in 2025.

“Budgetary issues are always a concern, whether it’s at the national level and the state level,” Dr. Antonucci said. “We are in the middle of our legislative session for the state of Florida, so we’re actively engaged in that and making sure that Medicaid reimbursement is protected. Similarly, at the federal level, we’re looking at the supplemental programs where we want to make sure that those are protected long term.”

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