What The Future May Hold For Healthcare Facilities
Healthcare has endured tremendous change over the last several years forcing developers and healthcare providers to think more creatively. Healthcare providers have long struggled with the ideal of providing healthcare delivery models that provide patients with their needs close to home (or sometimes even inside the home). But today, healthcare developers and professionals have a renewed focus of transitioning the healthcare model from large central campus models to a more distributed network of small facilities located within the neighborhoods where people actually live. This shift in focus presents opportunity for developers and investors to present cost effective facilities to medical providers.
Large medical facilities tend to be costly and labor intensive and can take over a year just to design a facility not to mention the 12 to 24 months to complete construction. With continued constraints on skilled labor, the industry is trying to innovate new models, more retail-oriented models, that allow systems to engage with patients closer to home. The industry is slowly trending towards removing barriers and opening access.
Large campus settings have been the status quo in healthcare for generations; however, as construction costs surge and labor pools contract, developers and healthcare providers have continued to bring fresh ideas to the table. Some are looking to repurpose old buildings such as retail centers. Others are looking at modular or prefabrication construction options. They are in need of efficiency and opportunities allowing them to get locations up and running faster. A great example of this type of facility would be Texas Health Harris Methodist Alliance Hospital in Fort Worth, Texas. Where they utilized prefabrication on their 188,124 s. f. location in 2010 and are now planning a 65,000 s. f. expansion. McGraw Hill utilized their experience for a case study and found that “All the metrics demonstrated more value, quicker work, fewer change orders.” These things are extremely important to providers and their experience has caused other providers to seriously consider this route.
Prefabrication worked well for Texas Health Harris Methodist Alliance Hospital; however, others may look toward repurposing properties as this is the quickest option for a satellite location. With many vacant and abandoned buildings spanning the country, healthcare providers can look to utilize these untapped resources for some of their outpatient facilities. These infill locations allow patients to be seen in their own backyard as opposed to going through the hassle of a large hospital visit for minor issues. This decreases cost and allows facilities to provide treatments more efficiently.
This is an exciting time for the health care industry on many fronts and we can look to see many more creative solutions on the horizon. Whatever the solution becomes on the real estate side, Metropolitan Capital Advisors is right there to assist. We have been in the healthcare industry for over 15 years assisting our clients leverage the most efficient form of capital for their projects. Call Kevan McCormack with your next healthcare or senior living deal.