Hospital officials said the shift could help them attract a greater share of the area's burgeoning elderly and seasonal residents.
The Health System will lease the building for $314,594 next year under the contract, and that annual rent will gradually rise to $410,473 over 10 years.
In return, Lee Memorial will get access to a building in much better shape than the section of the hospital it currently uses to house its programs. It can also obtain enough space to better combine its rehabilitation program for people recovering from injuries or accidents to its wellness program, which is intended for those who want to exercise under the supervision of fitness experts.
Lee Memorial took over the wellness program about a year and a half ago from a private company that operated it on hospital grounds but was having trouble making a profit. Hundreds of people petitioned the board of directors to take over the wellness program; they guaranteed frequent use of the center if it was run by the health system. The health system took it over and many of the petitioners kept their promise.
Richard Hillyer, a system director for rehabilitation and wellness, said it would take a year to renovate the new Carrell Road space and transfer equipment there. After that is done, he said, the section of the hospital used for the programs would be torn down to make room for more parking spaces.
The two programs serve about 550 people now, health system officials said. Membership fees range from $50-$60 a month.
"We expect the program to break even," said Marjory May, a system vice president for post-acute care at Lee Memorial.
Only one board member voted against the plan. Bill Martin questioned whether the lease made financial sense. "I don't want there to be another half-cent tax for the wellness center," he said.
But hospital officials said the move would help the hospital's financial condition. They said having a bigger presence in a refurbished building would attract more business.
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