Weekly Hospital Actual Property Briefing: 5 Takeaways from Our Hospital Campus Improvement Tendencies Webinar

On March 12, we hosted a webinar titled Hospital Campus Improvement: Present Offers, Tendencies and Insights Discovered Alongside the Means. To look at a video replay of the webinar and to get copies of our slides, click on right here.

Listed here are our high 5 takeaways from the webinar:

1. Paging Dr. Technique: Your Actual Property Is Calling – Hospital executives have made actual property technique a precedence over the previous twelve months. We’ve seen an uptick in hospitals taking down land, and in a number of situations, a whole lot of land, to “plant a flag” in development markets. Different driving forces embrace modifications in certificates of want (CON) legal guidelines, which have created new alternatives for hospital suppliers to broaden. Talking of CON reform, we’ve seen this play out in a few methods. More often than not, a complete repeal of CON legal guidelines hasn’t been profitable. However, extra restricted modifications to chill out CON requirements for rural communities, behavioral well being providers and ambulatory surgical procedure facilities (ASCs) have been profitable. A number of states are contemplating a phased method to CON reform over plenty of years.
2. Present Me the Cash! – Adjustments in reimbursement coverage proceed to affect how new hospital campuses are being developed. Simply this yr, new coverage modifications have made it tougher to function hospital outpatient departments. These modifications, and others, will power hospital programs to proceed to give attention to getting increased acuity sufferers to inpatient amenities on their campus or contemplate establishing extra neighborhood hospitals that embrace a mixture of pressing care and inpatient hospital providers.
3. When to Swipe Proper on Joint Ventures (JVs) – Three way partnership transactions proceed to be a precedence for hospital programs. Primarily based on a survey of hospital executives, hospital programs are prioritizing JVs for brand new ASCs, behavioral hospitals, inpatient rehabilitation amenities, mixed pressing care and free-standing emergency departments and oncology facilities. Selecting the correct associate is essential, along with mission alignment.
4. Hospital Beds, Joyful Hour, Housing and Inns – Hospital campuses have gotten mixed-use initiatives with the hospital being the anchor tenant. Hospital executives wish to create a “vacation spot” for sufferers, their households and staff. Plenty of hospital campuses are contemplating workforce housing, extended-stay inns for sufferers and their households, senior housing, eating places and retail. This creates an atmosphere that’s comfy and handy for sufferers and staff.
5. Taxes, TIFs and Speaking to Metropolis Corridor – Getting financial incentives for a brand new non-profit or governmental hospital venture might be difficult. Native officers usually need new hospitals, however acknowledge that the hospital could also be exempt from property taxes. Some communities are asking hospital operators to enter into PILOT (cost in lieu of taxes) agreements as a situation to getting their initiatives authorised. Creating a method for working with native officers on new initiatives is vital.

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