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City of Salem and North Shore Medical Center Finalize Community Benefits Agreement

Agreement provides new support for City infrastructure and programs.
Posted on: February 7, 2017 - 2:58pm

Salem Mayor Kim Driscoll announced today that the City of Salem and North Shore Medical Center have finalized a community benefits agreement that consists of support for a broad range of City needs and programs.

The agreement, which is in addition to the regular annual payment in lieu of taxes that the hospital provides to the City, comes as NSMC is undergoing a project to consolidate its hospital-based medical, surgical, and behavioral health services on one campus in Salem to create a stronger regional facility for complex inpatient and emergency care. This consolidation of inpatient care will be coupled with the expansion of outpatient community-based services to provide local families with a more accessible and effective health care resource into the future.

“The goal of this project is to achieve a healthcare system defined by values that redesign and refocus care around the patient and expand access to community-based care,” said Gregg S. Meyer, M.D., Interim President of NSMC. “Because of the scope of this project, NSMC recognizes that there will be additional impacts to our neighbors in Salem. This agreement is one way we hope to try to address those impacts.”

The project at the Salem Hospital campus of NSMC will include construction of a new Emergency Department, 24 new private patient rooms, and 90 behavioral health beds, as well as changes to internal campus access roads and improved signage in parking lots and buildings to make entry and wayfinding easier for patients and visitors.

“North Shore Medical Center’s campus consolidation project will bring more jobs, greater access to quality health care services, and positive indirect economic benefits,” said Mayor Driscoll. “That does not mean, however, that it will not be without disruption or impact. I believe the benefits provided by this agreement will help toward mitigating and addressing those impacts. This agreement represents many months of discussions between City staff and NSMC officials and, I believe, reflects appropriately many of the impacts our community will bear from the larger hospital campus and facility. I was also pleased that we were able to include extensive specific mitigation to the Ward 3 neighborhood where the hospital is located.”

Among the items included in the community benefits agreement are the following:

  • $700,000 over seven years to help address public safety impacts;
  • $325,000 for roadway and traffic signal upgrades along the Jefferson Avenue corridor;
  • $75,000 to bolster City’s parking, transit, mobility, and sustainability efforts;
  • $100,000 for utility impacts off site from the hospital campus but related to the project, including $35,000 for storm water upgrades on Jackson Street;
  • $45,000 over three years to fund the City’s revamped bicycle sharing program

The agreement provides for the City’s use of the NSMC parking lot at 55 Highland Avenue on evenings and weekends for those attending events at Bertram Field. It also continues NSMC’s commitment to collaborating on the development of the potential South Salem Commuter Rail stop. Finally, NSMC additionally commits to providing $37,500 over five years towards participation in a transportation management association of the City’s selection, which can help reduce traffic congestion on streets around the hospital.

These benefits are in addition to NSMC’s annual payment in lieu of taxes, which will continue going forward. The agreement will be filed this week with the Salem City Council, which must authorize the Mayor to sign it on behalf of the City.