Why Healthcare Is Returning to the Campus Model

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For the past several years, healthcare operators have spread out ancillary services, like dialysis and oncology. Now, healthcare providers are returning to the campus model, consolidating services in a medical campus setting. Rising demand for these services and a customer preference to the campus model is fueling the new trend.

“The expansion has been fueled by the demand of the healthcare consumers to have their healthcare services located near their homes,” Bryan Lewitt, managing director at JLL, tells GlobeSt.com. “In most cases healthcare consumers do not live close to the hospital campuses. This has forced the hospital systems operators other and other ancillaries service providers to relocate their services to the community where they want to serve.”

In addition to demand, the campus model is also more sustainable, particularly due to a changing regulatory environment.

“After being in the community in the past five to seven years the hospital system operators are finding it very difficult to run a profitable business off-campus. Due to all the regulations placed upon hospitals and reduced reimbursements most of their off-campus ventures are losing money,” says Lewitt. “However, in some instances where the hospital system has a very good market share in a very wealthy neighborhoods off campus locations work for them.”

This shift in strategy has had a major impact on leasing activity for both on- and off-campus medical buildings.

“There are many well located retail centers that have been beneficiaries of healthcare providers to their centers,” says Lewitt. “Currently 10% of all healthcare facilities in Southern California are located is in a retail center. This has doubled from only 10 years ago. Secondly, off-campus medical buildings have also benefited. The off-campus medical buildings have benefited because it is now acceptable for the investors and the financing world to value these off-campus buildings close to an on campus medical building due to the credit of these tenancies.”

Smaller medical start-up models will be most impacted by the new trend.

“The major shift is for the vacuum of hospital operators going back to the campuses for the disruptors. The disruptors have less regulations and they are not embroiled in a mission like many of the hospitals,” says Lewitt. “They also know how to make money. Therefore, we see smaller start-ups and publicly back companies looking for off-campus locations to fill the void of where the hospital operators wanted to be in the past.”

 

Source:  GlobeSt.

107K SF Medical Office Building Coming To Medical City Campus That Housed Forest Park Medical Center

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Healthcare Trust of America is planning a $55M-plus building on a medical campus off U.S. Highway 75 in Dallas that used to house the Forest Park Medical Center.

The campus, which is now home to Medical City Heart Hospital and Spine Campus, used to house the Forest Park Medical Center flagship location. Forest Park was a physician-owned hospital that fell under the weight of bankruptcy and a federal investigation into an alleged physician kickback scheme.

Healthcare Trust of America out of Arizona said it will build another 107K SF of leasable space on the campus with construction set to launch in the fourth quarter.  The firm estimates it will cost roughly $55M to $60M to develop the Class-A building and a new parking garage.

HTA already owns two medical office buildings on the same campus and plans to acquire another 6 acres nearby for development.  HTA expects the project to have lease commitments of at least 73% prior to the start of construction, which begins this year and ends in 2021.

 

Source: Bisnow

MBRE Healthcare Breaks Ground In Colorado Springs For Orthopedic-Focused MOB for UCHealth

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MBRE Healthcare, the nation’s largest private owner of healthcare properties, broke ground Aug. 21 for Grandview Medical Center, a 65,000-square-foot medical office building (MOB) on the UCHealth medical campus in northern Colorado Springs.

Slated to open in late 2020, the new, three-story sports medicine and orthopedic-focused MOB at 5818 N. Nevada Ave. will be a critical part of the full-service health campus it will share with Grandview Hospital.

Grandview Medical Center will offer sports medicine-focused primary care, advanced orthopedics imaging, a physical therapy clinic and a 7,500-square-foot rehabilitation gym. In addition, the state-of-the-art treatment patients will receive will be bolstered by a strong research partnership with University of Colorado School of Medicine’s Department of Orthopedics.

“MBRE Healthcare is proud to help bring this incredible resource, one that provides such a critical service with sports medicine and orthopedic patients of all ages and stages in southern Colorado and the Pikes Peak region,” says President Peter Westmeyer. “It’s another example of the way MBRE Healthcare helps top providers like UCHealth to deliver outstanding healthcare services in quality settings.”

“The addition of the Grandview Medical Center will enable our patients to receive a coordinated, patient-centric experience at a single location that includes primary and specialty care, advanced imaging capabilities, and therapy services,” says Andrew Ritchie, chief administrative officer for Grandview Hospital. “We are also opening an imaging center that will have the latest capabilities, including DEXA scans that measure bone health and bone density. The center also will have a weight-bearing CT machine, a relatively new technology that is important for diagnosing foot and ankle concerns.”

The 22-bed Grandview Hospital, which was also developed by MBRE Healthcare for UCHealth, was warmly welcomed by the community when it opened in late 2016 and patient volumes have far exceeded expectations. The hospital and the site of the future Grandview Medical Center offer convenient access to U.S. Interstate 25 and are in close proximity to the University of Colorado – Colorado Springs (UCCS) campus and University Village Shopping Center. Additionally, as the Grandview name implies, the campus affords beautiful views of majestic Pikes Peak.

Grandview Medical Center is being developed and will be owned by Chicago-based MBRE Healthcare, and will be leased and operated by UCHealth. The project development team also includes BSA LifeStructures architects, Drexel Barrell & Co. engineers and Hensel Phelps general contractors.