Hospitals nationwide are undergoing extensive rebuild and renovation efforts to retain and attract patients to keep pace with rapid advances in technology and demand for health care services. Next month, Cedars-Sinai will open the state-of-the-art S. Mark Taper Foundation Imaging Center and Department with cutting edge technology and equipment.

Another reason that hospitals have stepped up their building in California is that they are mandated by law to comply with a higher level of seismic safety beginning in the year 2002. The law is intended to ensure that California hospitals are operational and ready-to-receive patients after a considerable seismic event. The California Healthcare Association estimates that it will cost hospitals $10 billion for such capital expenditures. As a result, hundreds of hospitals will be required to retrofit their existing structures, build replacement facilities or close their doors.

On January 1, 2002, Cedars-Sinai was given a structural rating that allows it to operate until 2030 with its present buildings. We also received a non-structural rating that allows us to stay in the critical care business until 2008. After we finish securing the non-structural equipment (overhead lights, fixtures, shelves, and the like) in critical care areas of the hospital, we will be good on that front until 2030. Under the Cedars-Sinai Master Facilities Plan, nearly every building on the medical campus will undergo renovations and improvements. Some of the new facilities constructed will replace those lost in the 1994 earthquake. Many will house expanded programs and services.

Cedars-Sinai's "Building for the 21st Century" facility expansion plan:The "Building for the 21st Century" facility expansion plan is funded by a $620 million building and capital improvement program led by Thomas M. Priselac, president and CEO of Cedars-Sinai. Cedars-Sinai's investment in the plan's capital projects provides the infrastructure for quality health care delivery to the Los Angeles area. Last year, Cedars-Sinai had over 44,000 inpatient admissions, 78,700 visits to the emergency department and performed over 18,000 surgeries. By 2005, the Cedars-Sinai Medical Center will house over 1,000 inpatient beds and have the capacity to perform 30,000 surgeries annually. The "Building for the 21st Century" facility expansion plan is extensive and includes the completion of the Research Pavilion in 2001 and hundreds of "infill" and "backfill" projects. This discussion will concentrate on the construction of four new buildings:

S. Mark Taper Foundation Imaging Center and DepartmentLocated at San Vicente and Gracie Allen Road, the $83 million, state-of-the-art S. Mark Taper Foundation Imaging Center and Department project will open in October 2002. The project is comprised of 65,000 square feet of renovated space and 60,000 square feet of new construction. The renovation of the lower levels has been completed earlier this year and construction of the new building will be finished in September 2002. The S. Mark Taper Foundation Imaging Center and Department will house cutting edge equipment, including MRI, CT scanning, PET scanning, as well as the innovative Cedars-Sinai Heart Watch(tm), an ultra fast calcium scan and the earliest way to detect heart disease.

Central Plant ExpansionThe new subterranean 26,500-square-foot Central Plant is currently under construction. The new plant will supplement the cooling capacity of the existing plant and consolidate emergency power generation for the entire campus. The utilization of hybrid system technology will greatly contribute to the reduction of the energy cost. The operator may select electric or natural gas driven equipment based on the cost of the utilities. Construction will be completed by May 2003.

North Care Tower The North Care Tower, an inpatient tower, is scheduled to begin construction in September 2002 and finish in 2005. The North Care Tower will replace the Schuman and Brown buildings destroyed by the Northridge earthquake, and will expand the number of inpatient beds at the Medical Center.

Diagnostic and Treatment CenterThe Diagnostic and Treatment Center will house such functions as laboratory, pathology, rehabilitation, pediatrics/genetics, women's services, heart and lung services and surgical services. A construction timeline is currently being determined.

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