10 PHOENIX BUSINESS JOURNAL

ANGELA GONZALES Covers residential real estate,

health care and education

I AGONZALES@BIZJOURNALS.COM 602-308-6521 @PHXBIZAGONZALES

R FUNDING REPORTER’S NOTEBOOK

PHOENIX BIOSCIENCE
FIRMS GET MILLIONS
Zoning case set for what could be
IN NEW CAPITAL first hospital in Fountain Hills
PARADIGM DIAGNOSTICS INC.
A couple of Tucson physicians hope to
Headquarters: Phoenix
build the first hospital in Fountain Hills,
Funding: $15 million series B round
but have a few hurdles before they can
Am

Proceeds: To help commercialize its genetic break ground.

profile test aimed at personalized medicine,
turning around an aggressive tumor profile
The Fountain Hills Town Council will
er

within a few days using a small sample. need to approve a zoning change at its
ica

Investors: Founding investors — Mesa June 4 meeting to make way for the hos-
Verde Venture Partners, New Science pital in the far northeast corner of the
n

Ventures and Prairie Ventures — added Gore Valley, said Pete Peters, project manager
Range Ventures, the Tech Coast Angels
Ci

for FSED Consulting, which is oversee-

San Diego Venture Fund, OSF HealthCare
ing the project.
ty

Ventures and BlueStone Venture Partners

LLC to the final Series B raise. “That’s the one thing that can hold
Bu

Total raised to date: $42 million, which

up the project,” Peters said.
includes more than $27 million from If approved, the Fountain Hills Med-
s

University of Michigan Health Corp. when ical Center would include a 24/7 emer-
ine

Paradigm was a nonprofit operated jointly gency room, imaging center with CT,
by Phoenix-based International Genomics MRI, X-ray, ultrasound, nuclear medi-
ss

Consortium and the Michigan health

company before spinning out in 2012.
cine, laboratory, pharmacy and a hand-
ful of inpatient beds.
Jo

Founder/CEO/Chairman: David Mallery

Andrea Davis, principal commercial PROVIDED BY FOUNTAIN HILLS MEDICAL CENTER
SOLERA HEALTH
ur

real estate broker on the project, said A small hospital is planned for this outlined parcel of land in Fountain Hills.
Headquarters: Phoenix
na

development costs for Phase I of the

Funding: $42 million series C round hospital at 9700 E. Saguaro Blvd. will thing negative about it.” Nearby homeowners like the idea of
ls

Proceeds: To expand its integrated be $15 million. Plans call for building While Fountain Hills residents wel- C-1 zoning because it only allows the
network benefit that connects patients,
-

the hospital in three phases, with Phase come a community hospital, some hospital to be 24 feet above grade.
payers and physicians around the country
No

II incorporating operating rooms and homeowners near the 5.74-acre prop- The physician owners of the hospi-
with community wellness organizations
and non-medical health providers, Phase III adding more diagnostic med- erty at Shea and Saguaro boulevards tal — Drs. Chukwuemeka Ezeume and
tf

consolidating highly fragmented programs ical services. aren’t so sure about the type of zoning Sandeep Yarlagadda — are willing to
or

and services into a single marketplace. Jason Payne, assistant fire chief and the physicians originally requested. keep the project limited to one story to
Investors: Chicago-based Health Care fire marshal for Fountain Hills, said a Zoning statutes require either C-2 zon- keep the community happy, Davis said.
c

Services Corp., through its HCSC Ventures community hospital in Fountain Hills ing or C-1 zoning with a special-use per- Meanwhile, the physicians have
om

arm; five Blue Cross Blue Shield plans in would come in handy, especially for mit for any project open 24/7, Davis said. selected Georgia-based Freese Johnson
New Jersey, South Carolina, Alabama,
walk-in patients. “We went to the planning and zon- as general contractor and Robert Quin-
m

California and Kansas City; Adams Street

Partners; and SJF Ventures. “Everyone seems to say the same ing commission and asked for C-2, but tana of Dallas as architect. If zoning goes
er

Total raised to date: $72 million thing: They’re excited about the oppor- the neighbors said they would like for as planned, the project would be open
cia

Founder/CEO: Brenda Schmidt tunity a hospital might be built here,” zoning to remain C-1 with a special-use by spring 2020, creating between 50
Payne said. “I haven’t yet heard any- permit,” Davis said. and 75 new jobs, Davis said.
lu

QUOTABLE
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R
R HEALTH CARE
“These errors are not looking
at sick people who die NINE HOSPITALS EARNED HIGHEST GRADE ON LEAPFROG SAFETY REPORT
from their sickness. They Arizona ranks No. 34 in the ABRAZO ARROWHEAD KINGMAN REGIONAL HONORHEALTH
nation on the Leapfrog Group CAMPUS, GLENDALE MEDICAL CENTER, SCOTTSDALE SHEA
are dying from things they Hospital Safety Score, with only KINGMAN MEDICAL CENTER,
Fall 2018: A
shouldn’t be dying from. nine hospitals earning an A
Spring 2018: A Fall 2018: C SCOTTSDALE
letter grade. Fall 2018: A
Nobody should be getting Mayo Clinic Hospital in Spring 2018: C
ABRAZO WEST CAMPUS, Spring 2018: B
Phoenix stands out among all GOODYEAR MAYO CLINIC HOSPITAL,
an infection in Arizona hospitals and even PHOENIX THOMPSON PEAK MEDICAL
Fall 2018: A
a hospital.” nationwide. Of the 2,600
Spring 2018: A Fall 2018: A CENTER, SCOTTSDALE
graded hospitals across the
Spring 2018: A Fall 2018: A
ERICA MOBLEY, country in the May 15 report, BANNER BOSWELL MEDICAL
director of Mayo Clinic Hospital is among Spring 2018: A
CENTER, SUN CITY HONORHEALTH
operations for The only 41 hospitals that earned SCOTTSDALE OSBORN
Leapfrog Group, on straight As since Leapfrog Fall 2018: A
MEDICAL CENTER,
the 3,123 lives lost in began issuing the report cards Spring 2018: B SCOTTSDALE
Arizona hospitals in 2012, according to the report.
BANNER ESTRELLA Fall 2018: B
in 2018 from At right are the nine Valley
MEDICAL CENTER, PHOENIX Spring 2018: C
avoidable hospitals that earned As on the
medical Spring 2019 report card, along Fall 2018: A
errors. with their most recent grades. Spring 2018: A SOURCE: LEAPFROG GROUP’S SPRING 2019 HOSPITAL SAFETY GRADE REPORT