Enterprise Transformation: Meeting Consumer Expectations

Healthcare Real Estate Insights, Part 1

Taking Calculated Risks On New Technologies, Competition, and Customer Expectations

Inpatient demand and lower occupancy rates continue to decline in most, but not all, markets. With this paradigm shift in how healthcare is delivered, providers have intensified their focus on new technologies, business dynamics, and consumer preferences, in their effort to transform their organizations and stay both relevant and profitable.

  • New kinds of services outside the traditional acute care business model will continue to be evaluated. Consumer access and experience vs. the organization’s revenue and cost implications, need careful deliberation.
  • The value-based care model, combined with fluctuating market dynamics, will drive the need to create fewer dominant, inpatient-focused campuses.
  • Aging facilities, plants, and equipment, coupled with deferred spending and competitive pressures, will require capital allocation to fund major campus redevelopment programs.
  • Increased renovations and retrofitting of hospital campuses to accommodate private-bed models, increased ICU capabilities, and more outpatient and ambulatory services, will also result in opportunities for other mixed uses and create healthcare destination campuses.

When it comes to enterprise transformation, real estate assets are not just about bricks and mortar, but rather how facilities will be used in the future by patients and staff alike. Providers who make facilities planning a key component of their business strategy will be positioned to thrive in the future.

Fred Campobasso
Managing Director, Navigant Healthcare Real Estate Group

What Providers Need to Do:

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