Kaiser Permanente’s new headquarters will cost $900M

Kaiser Permanente, the Oakland, Calif.-based health system, is building a new headquarters in the same city. The new headquarters, which is called Kaiser Permanente Thrive Center and will accommodate 7,200 national and Northern California Region employees and physicians, comes with a price tag of about $900 million, according to the San Francisco Chronicle. It is expected to be completed in 2023.

Currently, Kaiser employees in the region work in seven different locations, according to a press release. The health system has been based in Oakland since 1945, and it is the largest employer in the city.

“For more than 7 decades, Kaiser Permanente has been proud to call Oakland our home, and today we further strengthen our commitment to this incredible city,” Bernard J. Tyson, chairman and CEO of Kaiser Permanente, said in a statement.

The company expects the headquarters will reduce operating expenses by $60 million or more through addressing facility maintenance, inefficient utility expenses and rising commercial real estate leases. After the completion of the building, other buildings currently utilized by Kaiser will be acquired by Lane Partners, a local developer, for renovation and commercial use. A one-time, $23 million economic boon to the area is expected, in addition to more than $15 million annually in local tax revenues.

“While allowing us to go from 7 sites to one and reduce operational costs by more than $60 million annually, which will create additional benefit for our members and customers, 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,” Tyson said.

The new headquarters will include a modern, environmentally sustainable, efficient workspace, according to a press release, with better access to public transit to support employee collaboration and help meet Kaiser’s 2020 plan to be carbon-neutral.

Among the amenities included in the design are a dedicated health clinic and health education space, community meeting spaces, healthy food options, weekly farmer's markets, exercise and cooking classes, a community-inspired art showplace and other neighborhood and community benefits. The organization plans to engage its employees and the surrounding community in the coming months to plan the new headquarters.

“In our rapidly changing health care environment, Kaiser Permanente must not only adapt, we must lead the way,” Richard Isaacs, MD, CEO and executive director of The Permanente Medical Group, said 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.”