Anchor Health Properties Commences Construction on a Second Medical Outpatient Building at Bayhealth Sussex Campus
Strengthening specialty healthcare in southern Delaware, Anchor Health Properties has commenced construction on a new 86,000 square foot medical outpatient building on the Bayhealth Hospital, Sussex Campus in Milford, Delaware. The four-story facility will bring a broader range of specialty care closer to patients, supporting the health system’s continued investment in meeting the needs of the region’s growing population.
Located adjacent to the campus’s existing medical outpatient building, the new facility marks the third ground-up development and second joint venture between Anchor Health Properties and Bayhealth, central and southern Delaware’s largest healthcare system, underscoring a longstanding partnership based on delivering high-quality patient care. The project is part of Bayhealth’s broader Next Wave initiative, which focuses on enhancing clinical capabilities and strengthening care delivery throughout the region.
"We have had the opportunity to work alongside Bayhealth on numerous projects over the years, and each one has strengthened our relationship and understanding of their long-term vision," shared Matt Pirolli, Vice President, Development with Anchor Health Properties. "This latest project builds on that history and reflects our shared commitment to creating healthcare spaces that support Bayhealth’s long-term goals and bring more healthcare services closer to the patients who need them."
The new facility will blend a complementary ecosystem of specialty services, including women’s health, maternal-fetal medicine, obstetrics and gynecology, breast and plastic surgery, orthopedics, podiatry, sports medicine, general surgery, wound care, and cardiovascular services. Bayhealth’s Heart & Vascular Institute, Sussex Campus will offer cardiology, cardiothoracic surgery, interventional cardiology, vascular care, nuclear medicine, and echocardiography services.
Designed with both patients and clinicians in mind, the facility will feature a flexible, pod-based clinical layout that supports efficient workflows, collaboration across specialties, and the ability to adapt spaces to meet changing healthcare demands. By bringing additional services together in a purpose-built outpatient setting, the project will also create opportunities for Bayhealth to expand and reconfigure services throughout its existing hospital and outpatient facilities.
“From the beginning, this has been a collaborative effort with Bayhealth’s leadership, clinical stakeholders, and our design and construction partners,” added Justin Istenes, Senior Director of Construction with Anchor Health Properties. “We have worked closely with the teams who will use this building every day to understand their needs and incorporate their input into the design. The result is a flexible, efficient space that supports how they deliver care today while allowing room for future growth.”
Anchor is leading the project through a design-build delivery approach, working closely with Bayhealth leadership, clinical stakeholders, and the project team to align the facility’s design with operational priorities and the needs of the providers who will occupy the space.
The project team includes regionally based firms with a proven track record of successfully delivering dynamic healthcare facilities together, including E4H Environments for Health Architecture, a healthcare-focused architecture and design firm, Warfel Construction, a full-service construction management firm, and Becker Morgan Group, a multi-disciplinary architecture and engineering firm serving as the project's civil engineer. The facility is slated to open in late 2027.