Health care leader to reduce operating costs and renew commitment to Oakland.
OAKLAND, Calif. – Kaiser Permanente today announced plans to construct a new headquarters — The Kaiser Permanente Thrive Center — in Oakland, bringing together staff currently in multiple locations, reducing annual operating costs, and benefitting the city that has been its home since 1945. The announcement is the latest step in the organization’s ongoing effort to deliver more affordable care and coverage while continuing its commitment to the city of Oakland. The new building, at 2100 Telegraph Avenue, is scheduled to break ground in 2020.
“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,” said Bernard J. Tyson, chairman and CEO of Kaiser Permanente. “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.”
This new downtown Oakland building will reduce operational costs by more than $60 million annually, addressing facilities maintenance, inefficient utility expenses, and rising commercial real estate leases. Reinvesting these savings will advance Kaiser Permanente’s mission of providing high-quality, affordable care for its members and communities.
The new offices will include modern, environmentally sustainable, efficient workspace with improved access to public transportation, all of which will support employee collaboration, productivity, and Kaiser Permanente’s goal to be carbon net positive by 2025.
The current vision for the building design includes:
Kaiser Permanente’s 7,200 national and Northern California Region employees currently work in 7 separate sites, primarily in Oakland. Once construction of the Kaiser Permanente Thrive Center is complete in 2023, existing buildings currently owned by Kaiser Permanente will be acquired by local developer Lane Partners for renovation and commercial use.
“In our rapidly changing health care environment, Kaiser Permanente must not only adapt, we must lead the way,” said Richard Isaacs, MD, CEO and executive director, The Permanente Medical Group. “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.”
Kaiser Permanente is the largest employer in Oakland and delivers significant economic impact to the city and the region. It is estimated that this new building will generate a one-time $23-million economic benefit in addition to more than $15 million annually in local tax revenues for the city, according to site developer Lane Partners.
“Kaiser Permanente has been an anchor in Oakland’s community for more than 70 years,” noted Oakland Mayor Libby Schaaf. “We are so pleased that this organization has reaffirmed its commitment to Oakland with this decision to establish a new headquarters, a central home for its employees and a place for our community to connect and thrive.”
Over the coming months, Kaiser Permanente will engage its employees and the Oakland community in the planning and development of its new location, as well as in seeking best uses for public spaces in the building to foster collaboration and wellness.
The new building will consolidate Kaiser Permanente’s footprint and add to several major investments the organization has recently made in the Oakland community:
Another important partnership is with the Golden State Warriors. Kaiser Permanente recently announced a 20-year commitment starting with an initial investment of $5 million to start Generation Thrive, an initiative that will aid underserved children in the Oakland area.
Kaiser Permanente is committed to helping shape the future of health care. We are recognized as one of America’s leading health care providers and not-for-profit health plans. Founded in 1945, Kaiser Permanente has a mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We currently serve 12.3 million members in eight states and the District of Columbia. Care for members and patients is focused on their total health and guided by their personal Permanente Medical Group physicians, specialists and team of caregivers. Our expert and caring medical teams are empowered and supported by industry-leading technology advances and tools for health promotion, disease prevention, state-of-the-art care delivery and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education and the support of community health.