Title
Palos Hospital Rehabilitation Services Lease
History
Palos Community Hospital (PCH) has been providing rehabilitation services within the Orland Park Health and Fitness Center (OPHFC) since the Village acquired the facility in 2017. Prior to this, rehabilitation services were provided by PCH under the auspices of the St. George Wellness Center.
Upon taking ownership of the facility, the Village, in consultation with Power Wellness who operates the OPHFC on the Village’s behalf, determined the café was no longer a viable amenity to the facility. Staff engaged with Palos Community Hospital personnel to negotiate relocating rehabilitation services into the café area, expanding the footprint to utilize underutilized meeting spaces.
In January 2017, the Village entered into a lease agreement with Palos Community Hospital allowing PCH to utilize space within the Center for rehabilitation services at a cost of $10.50 per square foot. This contract expired on January 31, 2022. The Village of Orland Park, and Palos Community Hospital have agreed to operate under the current lease agreement, while terms of a new agreement undergo review and approval.
Attached, please find a proposed five-year lease agreement between the Village of Orland Park and Palos Community Hospital, allowing Palos Community Hospital to operate physical and occupational therapy services within the OPHFC, at a monthly fee of $16.50/sq. ft., with a 2.5% fee increase each year after the initial year of the agreement.
The total areas being utilized is 5,060 sq. ft. as outlined in Appendix A of the agreement.
The use of space by Palos Community Hospital is a positive enhancement for underutilized spaces of the Orland Park Health and Fitness Center. Patients participating in services conducted by Palos Community Hospital, gain excellent exposure to the OPHFC, resulting in new members joining the Center.
Financial Impact
The Village will earn $16.50 for 5,060 sq. ft. of leased space, with a...
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