Tom Van Pelt’s Post

Some excerpts from a recent interview with Modern Healthcare on health system construction:   "The real growth is [being driven by] the decreasing need for hospital beds in the future. Many services, orthopedics being a prime example, already have moved from primarily an inpatient to an outpatient environment. We're going to see more of that with more services, as procedures become less invasive and slide down to ambulatory surgery centers with overnight stay capacity, and then out of surgery centers to office buildings.”   Also noted in the article – UC Davis Health is building a new outpatient center and medical office building along with a 14-story 334-bed inpatient tower projected to open in 2030, all part of an ongoing $7.5 billion construction project. The system plans to spend $1.5 billion more on construction outside of that project between now and 2030 … The health system has made many design choices and investments to reflect an inpatient population that is projected to shrink in the long term. They include creating rooms that can easily be converted into intensive care units, and installing a remote patient monitoring system that tracks 11,000 vital sign data points per patient.   https://lnkd.in/gMQzNrfq

Healthcare systems are prioritizing projects that address the growing demand for outpatient care and are financially sustainable. The decline in the need for hospital beds is pushing many services, like orthopedics, towards outpatient environments. As Dr. David Lubarsky, CEO of UC Davis Health, points out, procedures are becoming less invasive, moving from inpatient to ambulatory surgery centers and office buildings. *** See link to full article in Comments section. *** #healthsystems #hospitals #healthcarerealestate #medicalrealestate

The landscape of medical commercial real estate is rapidly evolving, driven by significant trends that reflect the changing demands of healthcare delivery and patient care. A notable shift is the increasing preference for outpatient facilities and medical offices located in community-based settings, moving away from traditional hospital-centric models. This trend is fueled by advancements in medical technology that allow for more procedures to be performed on an outpatient basis, as well as a growing emphasis on patient convenience and accessibility. There is a rising demand for specialized medical spaces, including urgent care centers, ambulatory surgery centers, and wellness clinics, catering to a more health-conscious population. With healthcare spending projected to continue its upward trajectory, reaching over $4 trillion by the U.S. government's recent estimates, the medical commercial real estate sector is poised for significant growth and transformation, presenting opportunities for investors and developers to innovate and meet the evolving needs of healthcare providers and patients alike.

As more patients seek care and intensive procedures at freestanding clinics or ambulatory surgery centers, physician groups and healthcare systems should look at their real estate portfolio and focus on expanding high-revenue locations. “It’s about looking at facilities from a holistic perspective,” said Ann Duginske Cibulka, MBA, our Vice President of Real Estate Development, Healthcare. “Even though you might have a location in a market, it might require new investment. This is a time in which groups need to get creative. These are tough financial times. To grow, they need to make strategic operational decisions.” Read more on the current healthcare real estate sector and Ann's advice for health systems navigating the market: https://lnkd.in/dncpPxTc

Our Medical Outpatient Building Perspective looks at key themes impacting providers and medical office owners and operators. Dig deeper ⬇️ ▪️ Demand for space in off-campus Medical Outpatient Buildings has been increasing. Occupancy for off-campus MOBs increased 1.8% from Q1 2019 to Q1 2024, while on-campus occupancy increased 0.7% in that same timeframe. Inventory of off-campus MOBs is about double that of on-campus, but off-campus absorption was 1.9% of stock in Q1 2024, compared to 1.4% for on-campus. ▪️ On-campus MOBs provide adjacency to inpatient space and proximity to other referring providers. As they are typically developed by health systems that may have limited capital to deploy, occupancy will remain high. Off-campus MOBs may offer more convenience for patients, as developers seek to build near where people live and work. ▪️ The shift toward outpatient care and increased demand for care from older populations continues to drive demand for both on- and off-campus MOBs. With such high occupancy, MOBs are generating increased interest from investors as occupancy in other asset classes has declined. Download the full report to learn more >>

“Across the country engineers and architects are witnessing a surge in demand that will reshape healthcare consumption.”   New trends in healthcare infrastructure are emerging. Laura Padgett, AIA, and Matthew Griffith, AIA, NCARB, share about the relationship between design, construction, and the ever-evolving healthcare landscape in Nashville Medical News. You can read the full article here:   #Trends #HealthcareDesign #BargeDesignSolutions

Our Medical Outpatient Building Perspective looks at key themes impacting providers and medical office owners and operators. Dig deeper ⬇️ ▪️ Demand for space in off-campus Medical Outpatient Buildings has been increasing. Occupancy for off-campus MOBs increased 1.8% from Q1 2019 to Q1 2024, while on-campus occupancy increased 0.7% in that same timeframe. Inventory of off-campus MOBs is about double that of on-campus, but off-campus absorption was 1.9% of stock in Q1 2024, compared to 1.4% for on-campus. ▪️ On-campus MOBs provide adjacency to inpatient space and proximity to other referring providers. As they are typically developed by health systems that may have limited capital to deploy, occupancy will remain high. Off-campus MOBs may offer more convenience for patients, as developers seek to build near where people live and work. ▪️ The shift toward outpatient care and increased demand for care from older populations continues to drive demand for both on- and off-campus MOBs. With such high occupancy, MOBs are generating increased interest from investors as occupancy in other asset classes has declined. Download the full report to learn more >>

Discover innovations and insights in Ambulatory Healthcare Design - shaping the future of outpatient environments

Processing a discussion recently put on by Southwestern Health Resources and the Alliance for Healthcare Innovation (thanks, Keith Yezer and the SWHR team, for facilitating): The problem most medical facilities face is a lack of interdisciplinary and interorganizational communication. The results are preventable readmissions to hospitals, lack of follow-up with patients after discharge, and lower patient satisfaction with care, among other affected KPIs. Just this year, three major hospitals/medical facilities in Dallas were fined due to unacceptably high readmission rates. I have to wonder if homecare, both skilled and non-skilled, is the answer. Take the difference between Sally who just had hip replacement surgery three days ago, lives alone, and is a transplant from Ohio. Sally gets discharged from the hospital where she received surgery, gets home to an empty house and no support system, and subsequently falls the following night attempting to get from her bed to the restroom. Sally's back in the hospital, likely the ER. Now consider Betty. Betty has the same surgery, her surgeon/medical team recommends caregiving services with their partner organization, and she goes home to a trained, experienced CNA who helps her with transferring, getting to the restroom at night, some light housekeeping, and light exercise. Betty never falls and stays at home recovering. This is what coordination of care means. It means lower readmission rates, better patient satisfaction, and ultimately a higher quality of life, quicker recovery times, and better outcomes for all people who utilize our healthcare system. Thoughts?