Proposed Infrastructure Investments and Current Capital Program
To: Central Health Board of Managers
From: Amit Motwani, Chair, Infrastructure Committee
Stephanie Lee McDonald, Chief Infrastructure Officer
CC: Dr. Pat Lee, President & CEO
Date: August 22, 2025
Re: Proposed Infrastructure Investments and Current Capital Program
On September 24, 2025, the Central Health Board of Managers will be asked to take action to
acquire two new properties in support of the ongoing implementation of the Health Equity
Strategic Plan. These proposed acquisitions directly respond to the most urgent access needs in
our healthcare system, particularly in Northeast Austin and the Rundberg area—where Central
Health and CommUnityCare have identified significant gaps in in ambulatory care. Current
estimates have identified over 10,000 unique Travis County residents in this area who do not have
sufficient access to primary care.
Now in the second year of implementation, the Health Equity Strategic Plan outlined critical
infrastructure investments required to support equitable access to care. The Health Equity
Strategic Plan is a component of longer term and more broader care continuum analysis that is
also occurring. This work will include the primarily ambulatory and post-acute care needs already
identified, but will provide a longer-term capital facilities plan.
The Health Equity Strategic Plan identified primary care access challenges in South Austin and
Northeast/Rundberg. In addition, the plan also identifies essential investments in foundational
enablers for the Central Health System, including:
• Patient navigation services
• Eligibility and enrollment functions
• Revenue cycle operations
• Other clinical support infrastructure
These clinical support capabilities are indispensable to deliver and sustain high-quality care, and
they require dedicated workspace to be effectively operationalized. Other critical support spaces2
such as a Central Fulfillment Pharmacy and System Medical Equipment Sterilizations needs also
need to be housed in order to deliver appropriate patient care.
Further, our current capital strategy includes exploring investments across the care continuum,
such as:
• Post-Acute Care (with a focus on Skilled Nursing Facilities)
Although opportunities have not presented themselves to date, the Central Health team remains
committed to identifying and pursuing additional opportunities to advance our capital program in
alignment with strategic objectives.
Capital Acquisition Strategy – Key Considerations:
The proposed property acquisitions align with our broader capital acquisition strategy, which
prioritizes:
• Large sites capable of supporting co-located services and a broad range of ambulatory
clinical offerings
• Integration of Women’s Health and Pediatric services where feasible
• Preference for owned facilities over leased space
• Locations with long-term development potential, including capacity for future buildings
or multi-story development
• Proximity to major transportation corridors such as I-35
Both properties currently under consideration are in due diligence and meet the above criteria.
Next Steps:
• Board approval of these acquisitions and related financing through Certificates of
Obligation - Scheduled for September 24, 2025
• Travis County Commissioners Court – Planned to request approval for closing and sale of
Central Health issued Certificates of Obligation on October 7, 2025
Simultaneously, Central Health is progressing work on the FY 2025 System Key Result—
developing a comprehensive vision for the future care continuum and a formal Capital Program
Plan, both anticipated for completion in FY 2026.
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