The Real Estate plays a Significant Role in the Future of Healthcare
Though healthcare has found itself in the throes of some kind of transformation towards population health based on value, most executives have found inspiration in a source the least expected- the retail industry. This form of inspiration has been helping healthcare officials to bring affordable and convenient care to patients.
In the times of continued uncertainty and transformation, healthcare systems are learning something from the retail industry about how to perceive patients is consumers and make sure the remote healthcare facilities are optimally located and offer the expected services.
Healthcare facilities, such as hospitals sit on a considerable amount of underutilized real estate. Adding all off-campus healthcare facilities retail environment makes the real estate portfolio more complicated. Real estate portfolios, therefore, are projected to become more complicated is outpatient health care, and medical office estate are expected to grow rapidly across the entire United States regardless of their economic headwinds and potential political issues.
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The healthcare economy is growing very fast.
The entire healthcare industry is somewhat an undeniable force in the United States economy. It’s the most significant us employer according to data released in 2018. This industry employed more than 13% of the entire workforce. The healthcare industry is among the fastest-growing economic sectors in the country. This has contributed to the rapid growth of healthcare real estate, which is now valued at more than 1.2 trillion dollars. This industry is now more diversified than ever ant new construction to keep pace.
For many healthcare systems and hospitals reconfiguring their footprint means more outpatient medical facilities are necessary to meet the new demand. This is the reason real estate will continue to play an integral role in the future success of the country’s healthcare system.
Technology is pushing more care out of healthcare facility walls.
The advancements in technology, particularly in the healthcare industry, is shifting healthcare away from traditional hospital buildings. New technology is gaining momentum and has become a key driver in terms of outpatient care.
The delivery of health care services is evolving towards a somewhat centralized model that involves outpatient care. Consumers are increasingly expecting easy access and better experience when getting health care services. To meet this unique demand, healthcare organizations of set applications that are easy to access and offer better experiences for the patients.
Most medical and diagnostic procedures that once needed an inpatient stay an hour being performed excellently in an outpatient environment. This is possible due to the improvements in minimally invasive surgical procedures and recent anesthesia techniques that minimize complications and allow the patient to return home within a short time.
The demand for medical facilities will continue to increase.
A combination of the advancements in medical tech and the increasing demand for better health care services point to one thing. Medical facilities will continue to be the darling of investors and the entire healthcare system. Now you can understand why outpatient visits grew by 25% over the past ten years and aren’t showing any signs of slowing down.
Healthcare-related real estate is also growing is more medical office buildings continue to emerge is the most popular type of property within this industry. Real estate is believed to be more cyclical-resistant compared to traditional property sectors. This class of building likely to see investors doubling down attracted to its bright prospects for better performance and instability.
Every major aspect of the healthcare industry is likely to benefit from the growth of real estate. This is because healthcare property investments are very common, especially healthcare property investment trusts. In 2014, these trusts drove more than 60% of healthcare real estate transactions. On the other hand, health systems and medical facilities drove only 16% of the market transactions. Today, the buyer pool is a little more diversified as new investors are being attracted by the stable growth in this industry.
The total spending in the healthcare industry is expected to increase by more than 2 trillion dollars in the next ten years and expected to hit 19.7% of the entire GDP by 2026. Besides, healthcare providers are finding it more important to deliver safe, efficient and effective health care to the consumers. Real estate is playing an incredible role in imagining a more conveniently accessible and efficient healthcare system. So, it’s not possible to be certain of what the future holds, but one thing is sure – healthcare real estate will continue to grow, opening up new investment opportunities for property investors. This industry will continue to play a critical role in the future of the healthcare system.
