Sutter Health and Marin General Hospital are breaking up — again.
Sutter Health, which shares medical office space with Marin General Hospital in both San Rafael and Greenbrae, has opted not to renew its lease when it expires on March 31, according to both hospitals.
Sutter will be relocating out of its leased medical offices at 1350 S. Eliseo Drive in Greenbrae, and at 4000 Civic Center Drive in San Rafael, according to spokesman Dean Fryer. The Greenbrae offices Sutter is vacating already were partly occupied by Marin General under sublease.
Sutter will consolidate the health care services it currently provides at those locations to Novato, where it already has a large presence on Rowland Way. Relocation dates are being finalized but all will happen in March, he said, adding that renovations are underway in Novato to accommodate the incoming services.
“We are viewing this as an opportunity to pull together primary and specialty care services into one convenient location in Novato, allowing us to coordinate our patients’ care more closely,” Fryer said. (See the fact box for a complete list of services Sutter currently provides in Novato.
Sutter doesn’t plan to lay off anyone as a result of the relocation, Fryer said.
“All affected employees currently at Greenbrae and San Rafael will be placed in positions within Sutter,” he said. “Most will relocate to Novato; a few will be placed in other Sutter sites.”
Sutter employs approximately 380 people in Marin County; 310 work at Novato Community Hospital, Fryer said.
Sutter’s other hospitals in the North Bay include Sutter Santa Rosa Regional Hospital, Sutter Solano Medical Center in Vallejo and Sutter Lakeside Hospital in Lakeport.
Marin General will take over 38,000 square feet of medical offices on the second floor of the 4000 Civic Center Drive building in San Rafael, according to Haden Ongaro, part of the Newmark Knight Frank real estate brokerage team for San Francisco-based owner PSAI Realty Partners.
The 10-year lease, which Marin General said includes two five-year renewal options, doesn’t include the balance of Sutter’s 60,000 square feet there currently, located on the first floor. That general-purpose office space was subleased to Telltale Games, Ongaro said. The videogame developer, best known for “The Walking Dead” adaptation, shut down in September.
Marin General will offer a variety of outpatient services in the space being vacated by Sutter, according to Marin General spokeswoman Jamie Maites.
“Some of the services being considered include primary care, urgent care, imaging, lab and physical therapy,” said Maites, adding that details will be announced once plans are finalized. The new medical offices are expected to open to patients sometime in the second half of the year, she said.
Maites said more jobs may be added once all is said and done. Marin General currently employs nearly 2,100 people, including hospital and outpatient clinic employees.
This won’t be the first time Sutter and Marin General have exchanged local facilities. In 2010, Sutter turned over operation of the existing Greenbrae hospital to Marin Healthcare District after several years of court battles over revenue sharing. By that time, Sutter already had secured other real estate in Marin for medical offices.
In 2008, Sutter bought 11.3 acres, with Marin Square shopping center and surrounding commercial space at the south side of the Highway 101-Interstate 580 interchange in San Rafael. A few years later, the provider leased 30,000 square feet at 4000 Civic Center, later expanding it to as much as 74,000 square feet and adding an entrance for patients separate from the other building tenants.
Sutter services relocating to Novato addresses
100 Rowland Way
Child Development Center
Novato Community Hospital Physical Therapy
101 Rowland Way
Institute for Health and Healing
165 Rowland Way
Epileptology and Neurosurgery
Head, Neck and Plastic Surgery
Maternal Fetal Medicine