In the post-pandemic office, on-site and virtual medical care may be the next big amenity
CHICAGO TRIBUNE
Primary care startup Eden Health plans to open clinics in seven Chicago offices by next year, in deals that indicate wellness is likely to remain a priority in office buildings well after the COVID-19 pandemic subsides.
The New York-based company plans to open in four Chicago buildings owned by developer Sterling Bay, starting in 600 West Chicago and 111 N. Canal St. late this year, the companies said. The two buildings have a combined 7,500 employees, according to Sterling Bay.
The companies said they are finalizing deals for two other ground-floor spaces: in the two-tower Prudential Plaza office complex, which Sterling Bay has branded as One Two Pru, and in a Fulton Market tower at 333 N. Green St.
Eden Health also is working on deals to open in three buildings owned by another Chicago landlord, CEO Matt McCambridge said. He declined to comment on the specifics of those plans.
Even before the pandemic, office landlords in Chicago were upgrading amenities to remain competitive, adding everything from roof decks to bowling alleys.
Adding health care in larger office buildings is the logical next step, more than a year into a pandemic, McCambridge said.
“We really see health care becoming the amenity of the future,” McCambridge said. “We’re seeing landlords shifting the way they’re delivering services, and we see tenants and employers really demanding on-site medical services, especially in this post-pandemic environment.”
Building owners have responded to the pandemic by sprucing up outdoor spaces, upgrading amenities and improving air filtration.
Those steps are meant to make employees feel safe as they return from working at home, as well as to help their properties stand out amid record amounts of available office space downtown.
Doctor’s offices are nothing new in and around the Loop. Eden Health’s model is different in that it’s focused on locations in large office buildings with thousands of office workers, providing several types of medical care on site and virtually.
They also offer virtual meetings with clinicians, for things like updating physical therapy exercises and follow-up appointments. Family members who don’t work in an Eden Health building also can be seen virtually, the company said.
Virtual appointments, or telemedicine, will remain important if workers return to the office only for some days per week following the pandemic, McCambridge said.
“To me, the big thing landlords should be thinking about is how to stay relevant for folks who are only in their building one to three times a week,” he said. “You’ve even seen things like gyms doing home classes. I think you’ll see that creative thinking continue to develop over the next couple of years.”
Rather than signing long-term leases, Eden Health forms partnerships with landlords and employers either for single buildings or entire portfolios. In many cases, health care is partially or fully subsidized for workers, McCambridge said.
“We are heavily invested in the build out and it’s a partnership model,” said Jessica Brown, director of leasing at Sterling Bay. “If they win, we win together. But the most important thing is, we view this as an amenity for our tenants.”
For in-person visits, in-network patients cover the copay and their insurer is billed for services, the company said.
Eden Health members can visit buildings near them or use virtual meetings from anywhere in the country.
By the end of this year the company will have about 15 total locations in New York, New Jersey, Chicago, Boston and Washington, D.C., with broader expansion planned in the years to come, McCambridge said.
Eden Health has raised $100 million in venture capital to back its growth ambitions, including a $60 million round announced earlier this year. The company began in 2017.
Sterling Bay plans to sign deals with Eden Health to put clinics in the firm’s other developments around the country, in response to interest from tenants, Brown said.
“Wellness is a key selling point for our buildings,” Brown said. “We see this as the beginning of a long partnership.”
