Five ways healthcare reform will change real estate

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Berman, Mindy 2007bFrom Mindy Berman
Practice Lead, Healthcare Capital Markets

Healthcare reform has fundamentally changed how nearly everyone in America interacts with healthcare systems, from insurance coverage to the type and quality of care available to today’s healthcare facilities. In the wake of this dramatic shift, we teamed with Brandeis’s International Business School on a study on the impact of healthcare reform on healthcare real estate.

Our research found that healthcare reform is redefining key factors affecting healthcare real estate, including cost efficiency, the evolution of a retail model and technology. Healthcare reform in the U.S. has affected the way healthcare systems operate, leading to more opportunities to implement smart real estate solutions that reduce costs while improving patient care. This crucial market research from Brandeis and JLL informs healthcare systems on the way Healthcare Reform will impact their real estate strategies now and in the foreseeable future.

The growth of retail has dramatically changed the healthcare landscape. The industry is moving off of the hospital campus model into a community-based distributed delivery system. This is a quantum shift from episodic-based hospital and outpatient centers to providing care that is much more consumer centric and spontaneous. We call this “the retailization of healthcare.

The report Impact of Healthcare Reform on Healthcare Real Estate points to five key ways that U.S. healthcare reform is defining healthcare real estate: retailization, the geographic distribution of healthcare, customer-centric practices, technology, and cost efficiency.

Healthcare organizations are starting to think like retailers and reach consumers with the right facilities in the right locations to enhance their overall experience at the hospital. Consumers have many choices in today’s competitive landscape, so healthcare organizations that go above and beyond in catering to the patient population will be the most successful in the future.



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