Kaiser Permanente plans to build a 1.6 million-square-foot headquarters in Oakland, California, the healthcare giant announced Monday.
Called the Kaiser Permanente Thrive Center, officials said they expect to break ground on the building in 2020. The project is expected to be complete by 2023.
The cost of the new building: $900 million, according to media reports.
Officials said the move is expected to reduce operational costs by more than $60 million annually by addressing facilities maintenance, inefficient utility expenses and rising commercial real estate leases.
“For more than seven decades, Kaiser Permanente has been proud to call Oakland our home, and today we further strengthen our commitment to this incredible city,” said Bernard Tyson, chairman and CEO of Kaiser Permanente, in a statement. “This new headquarters—The Kaiser Permanente Thrive Center—will also bring tremendous benefits to the Uptown neighborhood, serve as a thriving center for the city of Oakland, and be a collaborative workspace for our employees.”
Once construction of the headquarters is complete, existing buildings owned by Kaiser Permanente will be acquired by local developer Lane Partners for renovation and commercial use.
The building details
Officials said the design of the building will use "green construction" and may include a health clinic, community meeting spaces, a showplace for locally inspired art and other benefits for the community such as healthy food options, weekly farmers markets as well as exercise and cooking classes. Kaiser officials said the new building will include an environmentally sustainable, efficient workspace with improved access to public transportation, which supports its goal to be carbon net positive by 2025.
“In our rapidly changing health care environment, Kaiser Permanente must not only adapt, we must lead the way,” said Richard Isaacs, M.D., CEO and executive director of The Permanente Medical Group, in a statement. “As we continually advance our technologies and practices to improve patient care, our people should work in an environment where innovation can flourish, collaboration and engagement are encouraged, and workplace wellness is a priority.”