With traditional approaches to healthcare real estate proving too costly to keep up with rising (and changing) patient demand and compressed reimbursements, the industry needs to evolve to enhance the patient experience and maintain fiscal health.
JLL’s recently published 2018 Healthcare Real Estate Outlook highlights several strategies on the rise that aim to better serve patient needs while improving healthcare providers’ financial bottom line.
New types of real estate in more locations to capture growing patient demand: By 2050, the U.S. population over 65 is projected to nearly double—which means that more healthcare will be needed in more effective space, in more effective locations, to serve seniors.
Source: U.S. Census
In addition, millennial patients, who have grown up expecting authentic experiences and on-demand service, are redefining healthcare and eschewing one-size-fits-all solutions. They want convenience in healthcare locations and appointment times, as well as smaller, more concentrated offerings.
In response to these needs, healthcare organizations are diversifying their facility options, favoring outpatient centers (which are less expensive to build and operate) over traditional hospitals and moving toward patient-centric multispecialty centers that save wait time, limit risk of infection and streamline costs, while enabling patients to get more specific care for their medical issues.
A boost in hospital expansion, renovation and construction to meet the growing need for inpatient facilities: With 10,000 Americans turning 65 every day for the next 20 years, the volume of hospital services will substantially grow. Inpatient facilities will increasingly be focused on the sickest and most acute care needs.
The $21.4 billion of new hospital construction currently under way is a response to anticipated patient demand, with approximately 75 percent of projects focusing on expanding and renovating facilities to accommodate longer stays.
For more on these trends, download our 2018 Healthcare Real Estate Outlook.