The healthcare industry in the United States is undergoing changes, particularly in how medical facilities are built and used. With the aging population, there is an increased focus on outpatient care. This trend impacts the design, construction, and costs associated with healthcare facilities. Construction costs are expected to rise by 2% to 4% in 2024 due to labor shortages and increasing material prices. Healthcare administrators and facility managers need to prepare for these changes.
The shift toward outpatient care is a major driver of demand for medical facilities. These facilities are now often called Medical Outpatient Buildings (MOBs). This change reflects significant modifications in patient care practices. Recent analyses show that occupancy rates for off-campus MOBs increased by 1.9% from 2019 to 2023. In comparison, on-campus facilities saw only a 1% increase, indicating a preference for decentralized care options.
The population aged 80 and over is projected to grow by 50% in the next decade. This group relies heavily on outpatient services, prompting a need for accessible care and fewer hospital admissions. Specialties like endocrinology and outpatient surgeries, such as joint replacements, are expanding. From 2022 to 2023, claims for these procedures rose by nearly 20%, highlighting the demand for facilities that can accommodate these needs.
The rise in construction costs presents a challenge for healthcare organizations trying to adapt to new trends. The forecasted increase of 2% to 4% in construction expenses for 2024 is influenced by various factors, including labor shortages. As a result, healthcare facilities may choose to renovate existing spaces instead of building new ones, which tend to be costlier. This approach aligns with the growing demand for specialized outpatient care that can fit into current structures.
Jay Johnson from JLL points out that moving care options to outpatient sites aims to improve access and quality while reducing expenses. Organizations are reassessing their spaces to optimize functionality and patient accessibility. This is especially important in rapidly growing areas like Austin and Orlando, where healthcare infrastructure must keep up with population growth.
Some regions are seeing greater growth in medical office space than others. The Dallas-Fort Worth area is set to have the most new construction, while Austin is experiencing the highest growth rate at 23.1%. According to JLL, New York has the largest amount of medical office space under construction, which relates to its dense population needing extensive healthcare services.
With the demand for off-campus MOBs increasing, healthcare organizations are recognizing the benefits of locating facilities closer to patients’ homes and workplaces. Kimberly Steele emphasizes that providing safe and healthy environments in healthcare is vital for community wellbeing. This is leading facility planners to consider designs beyond traditional medical offices, incorporating spaces like retail centers that can accommodate outpatient surgeries or lab services.
Advancements in technology are reshaping care delivery, making tech integration in construction and design important. Health systems are using technology to detect health issues early and implement less invasive treatment options. For medical facilities, this means focusing on designs that allow for easy incorporation of technology to improve patient care.
Artificial intelligence (AI) and workflow automations are enhancing how healthcare organizations operate in these new or renovated facilities. For instance, Simbo AI helps automate front-office processes, improving efficiency and communication with patients. This addresses operational needs while supporting the increase in outpatient care by allowing facilities to handle more patients without significantly raising staffing costs.
The use of AI in healthcare operations also extends to patient scheduling, service automation, and follow-up communications. AI tools can manage call handling, appointment reminders, and postoperative follow-ups, reducing the administrative burden on providers. This shift allows more time for direct patient care.
AI can significantly enhance patient experience. Automating follow-up calls or appointment bookings means that patients receive reminders without needing human interaction, which can reduce missed appointments and improve care continuity. This technology facilitates more efficient operations, helping institutions manage rising patient numbers effectively.
Labor shortages and rising material costs are key factors leading to anticipated construction cost increases in 2024. The construction sector is facing challenges due to an aging workforce, with skilled tradespeople retiring and fewer young workers entering the trade.
This situation calls for healthcare organizations to be strategic in their development and renovation strategies. Andrew Quirk notes that organizations can control costs related to leasing new office spaces by upgrading existing facilities to meet their needs better. This approach helps maintain a strong infrastructure without the financial strain of completely new projects.
Moreover, the connection between population density and medical office construction is crucial. Urban areas with higher population densities often attract investment for new facilities, while less populated regions may struggle to maintain their existing structures. Consequently, medical groups need to choose their construction locations carefully to ensure long-term sustainability.
As outpatient care continues to change, healthcare administrators must adjust their strategies. Decisions on whether to renovate or build new facilities will significantly affect how they meet current and future needs. With outpatient service demand on the rise, flexibility in design will be important for adapting to changing patient requirements over time.
In addition, integrating technology solutions like AI can further enhance patient care and efficiency. By using workflow automation, healthcare organizations can improve patient interactions and streamline back-end processes that often take time away from primary care objectives.
As interest rates increase, healthcare property investments face more uncertainty. Nonetheless, high-quality medical properties still attract investors, showing that opportunities remain. Understanding these dynamics will be crucial for healthcare leaders to navigate the evolving environment effectively.
Ultimately, focusing on enhancing outpatient care through tailored facility design, the incorporation of technology, and informed construction decisions will benefit both patients and providers. Adapting to these trends will be important for success in the years ahead.
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