When Karl Hertz became the Administrator at Kodiak Island Medical Center (PKIMC) in 2021, one of his most urgent priorities was to fill 54 vacant positions in his staff of 250 caregivers. In the first few months of his tenure, 12 new employees were successfully recruited and signed, but ultimately canceled their commitments because they were unable to find suitable housing.
In Kodiak, new hospital recruits compete for suitable housing with existing residents, seasonal employees, and U.S. Coast Guard Base Kodiak’s employees, a third of whom turnover annually. The popularity and profitability of the short-term vacation rental market for tourists is also having a growing impact on the long-term housing market. When properties become available for sale or rent, selling prices are often well out of reach for hospital and other essential service workers.
PKIMC's heavy reliance on traveling healthcare professionals and temporary housing solutions underscored the need for a more stable and accessible alternative. Collaborating with colleagues from Providence Alaska, Karl Hertz embarked on a strategic partnership with Dale Rahn, Executive Director of Real Estate Strategy and Operations, and Florian Borowski, Chief Human Resources Officer. Together, they delved into data analysis, considering seasonal fluctuations, ownership vs. rental options, cost estimates, and infrastructure comparisons to chart a viable path forward.
What emerged from this collaboration was a game-changing solution. With pre-existing land assets near the hospital campus, PKIMC embarked on constructing a 16-unit apartment building, fully furnished and designed to be family and pet-friendly. Concrete was poured in Spring 2022 and culminated with the building’s grand opening on August 29, 2023.
New hires are given priority access and temporary employees are given secondary access to the apartments for up to one year at affordable rates. The safe, comfortable, and conveniently located complex maintains a 93% occupancy rate and is often full; the average stay is three to four months. Since the complex opened, NOT ONE new hire has been lost because they were unable to find a suitable place to live!
This creative housing solution is helping PKIMC maintain a stable workforce, minimizing the use of traveling health care professionals and reducing stress on existing caregivers.
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