Boosting Amenities Becoming A Key Element To Healthcare Facilities

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Boosting amenities offerings are being given strong consideration for healthcare facilities as a way to create a more positive experience for the patient, leading them to be more likely to choose that provider thereafter, according to a new report from JLL.

“Colocation of traditional medical office space with primary care or specialists could allow health systems to utilize their current real estate portfolio more fully, and if done well could pay dividends,” the report said.

Some 63% of respondents said they would be interested in visiting a healthcare facility for an additional amenity. 80% of Gen Z and 77% of Millennials said they would be interested in visiting additional amenities at a healthcare facility, compared with 62% of Gen X and only 44% of Baby Boomers.

Alternative medicine such as chiropractors or acupuncturists was the No. 1 amenity choice for all four cohorts. Restaurants were the top choice for Gen Z and that amenity also ranked high in the other three cohorts. Fitness centers were the second choice for Gen Z and Millennials and the third choice for Boomers. Childcare and retail scored lowest among the six amenity choices offered.

Younger generations were more likely to respond that they would be interested in visiting additional amenities at a healthcare facility, according to JLL. Younger generations were less likely to have a primary care provider, instead preferring urgent care or the hospital emergency room department.

“Past experience” was a major factor in the choice of a provider, with over 40% of participants ranking it in the top 5 for all care types and over 50% for primary or preventative care and urgent care.

Alison Flynn Gaffney, FACHE, President, Healthcare Division, JLL, tells GlobeSt.com that wholistic health and wellness campuses that include fitness, retail, food services, and other mixed-use amenities curate an environment that looks beyond the immediate care need, giving consumers an experience with the health system complementary to medical needs.

“This creates more stickiness for existing patients or could introduce new consumers to the brand and increasing familiarity could make it more likely they will choose the location for a future care need,” Flynn Gaffney said. “Additionally, patients are looking for ease, and combing seeking care with other needs like everyday errands makes their lives easier. Healthcare co-located with pharmacies, retail, and restaurants achieves this, and that affects the overall patient experience.”

Seniors, in particular, are drawn to amenities, according to Trish Benson, Chief Strategy Officer, Transitions, such as relaxation areas and meditation rooms as they can provide a peaceful space to relax, meditate, and relieve stress.

“Fitness centers and gyms can help seniors maintain an active lifestyle and improve their physical fitness, which can help prevent chronic diseases and disabilities associated with aging,” Benson said. “Nutrition and healthy cooking classes can help seniors learn about healthy eating habits and meal planning, which can promote their overall health and wellbeing.”

She said that pet therapy programs can provide seniors with the companionship of animals, which can help reduce feelings of loneliness and depression and advanced technology and telemedicine services can help seniors access medical care and services regardless of their location, providing them with more convenience and flexibility. Overall, these amenities can enhance seniors’ quality of life and promote healthy aging.

And as demand for convenient medical and behavioral health services is spiking, healthcare is being brought closer to home with a variety of convenient outpatient services delivered in standalone locations or attached to senior or affordable living facilities, Brian Kane, Skender Construction Vice President, Healthcare, tells GlobeSt.com.

Its Torrence Place project in Lansing, Ill., is one example, “offering 48 accessible and adaptable multifamily units with a focus on veterans and people with disabilities and also includes a 3,600-square foot health clinic and pharmacy on-site.

“Adding to the convenience theme, we’ve seen some outpatient healthcare projects provide a thoughtful—not random or accidental— collection of specializations under one roof,” Kane said.

Skender recently completed the 12,000-square-foot buildout of Northwestern Medicine’s Pain and Spine Center in Bloomingdale, Ill., and it offers related specializations like pain management, neurology, physical therapy, and chiropractic in one convenient clinic.

“We’re also seeing an evolution of the amenity offering in major medical facilities and inpatient hospitals, mostly with the addition of safety, comfort, and sustainability features,” Kane said. “In projects such as the new IU Health Bloomington Regional Academic Health Center in Bloomington, we’ve added features like specialized ventilation systems and touchless fixtures to aid in infection control; natural and energy-efficient lighting to reduce stress; and modular designs with movable partitions to allow for easy reconfiguration of space like converting regular rooms into intensive care units.”

Kane said his healthcare clients are increasingly asking for the addition of outdoor space, and what used to be categorized as “nice to have” is now a baseline essential.

Hospitals are seeing similar trends, according to Doug King, Vice President and National Heathcare Sector Lead at Project Management Advisors, as many are eliminating the traditional cafeteria and replacing it with retail, food, and shopping options for visitors, staff, and patients.

Northwestern Medicine in Chicago started this trend about 10 years ago, eliminating its cafeteria and putting a robust retail program in its place.

More recently, the new Peter Gilgan Mississauga Hospital in Ontario, Canada, is following suit, setting up retail and dining options in place of a cafeteria from the start.

“This works well for urban hospitals, which get a good deal of foot traffic,” King tells GlobeSt.com. “We are also seeing healthcare facilities provide outdoor access for staff, patients, and families on multiple levels of the building.”

For example, one large Midwestern hospital recently opted to build a rooftop garden that staff, patients, and siblings of the children in the pediatric and NICU areas can access for a little green space and outdoor therapy. The Peter Gilgan Mississauga Hospital is exploring providing staff outdoor respite areas on multiple levels in the facility as well.

“Many hospitals are also expanding parking access for patients directly below the hospital,” King said. “Additionally, an increasing number of healthcare centers are providing childcare options for patients. Members of PMA recently conducted an IRB-approved, grant-funded research study which found that people living below the poverty line often miss medical appointments because they can’t find childcare, so integrating daycare centers into medical settings can help to alleviate that issue for many patients.”

To mitigate staff shortages and decrease the risk of infection, many healthcare facilities are using AI and autonomous robotic vehicles to handle some of the repetitive service, delivery, and pickup functions previously done by service staff, according to King.

 

Source: GlobeSt.

MOB’s Low Vacancies, Longer Leases Boost Investor Appeal

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Vacancies? What vacancies? As medical offices go, the idea of unleased space is practically a foreign concept.

Thanks to an aging population that requires more care and the need for medical office visits when a patient is ill or has a chronic disease, medical offices remain in demand. As a result, in the first quarter of 2023, the national medical office vacancy rate was only 9.2% — just under half the 17.5% vacancy rate for traditional offices.

“From 2019 through the first quarter of 2023, vacancy in medical office properties has only risen 50 basis points nationally,” Marcus & Millichap reported in June.

The future outlook also seems healthy as the number of senior citizens increases and the amount of new medical office space being built remains limited. As of June, less than 12 million SF – or 1% of current inventory — was slated for 2023 delivery.

The report acknowledges, however, that availability depends on location-specific factors, such as resident demographics, existing local stock and metro-level construction pipelines.

Vacancy rates are especially low in warm weather markets which are experiencing an influx of retirees escaping cold-weather climates like Chicago or New York. The report cites a 190 basis-point drop in medical vacancy in the Dallas-Fort Worth area from 2019 to March 2023 “coinciding with a 17% surge in the metro’s age 65-plus cohort.” There was a similar pattern in other areas where the senior population grew more than 15%, such as West Palm Beach, San Antonio and Phoenix. Each saw vacancy falling by more than 200 basis points in the same period.

The strength of the medical office market is being bolstered by the entry of large retail chains such as Walmart Health. Walgreens has expanded into primary, specialty and urgent care following its $8.9 billion acquisition of Summit Health, while Amazon snapped up One Medical’s virtual, in-office and lab services. Other retailers entering the market could also boost demand for medical office space.

Post-Covid, medical office space has maintained an average sale price of just under $300 per SF. However, the report notes, dealmaking has slowed since the Fed began to raise interest rates. Uncertainty in the banking sector, which supplied over 75% of medical office financing in 2022, could also tighten lending.

On the other hand, medical office leases are generally signed for longer periods, reducing erratic swings, and healthcare is often non-discretionary. These factors, as well as telehealth and fewer labor challenges “could boost investor confidence in the long-term growth potential of the sector,” the report states.

 

Source: GlobeSt.

Florida-Based Primary Care Provider Expands Into Fort Worth With Two Acquisitions

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Florida-based Palm Medical Centers is expanding into Texas with the acquisition of two longstanding primary care practices in Fort Worth.

Through the deal, Texas Family Medicine, located at 6100 Harris Pkwy, and Fort Worth Primary Care, located at 800 8th Avenue Suite 626, will shift to the Palm Primary Care Texas brand. The clinics are expected to change names in September.

Terms of the transaction were not disclosed.

“I’m honored to be able to bring the Palm model to my hometown physicians of Fort Worth, where I’ve spent over 20 years of my career advocating for Medicare beneficiaries and partnering with local physicians,” Fowad Choudhry, CEO of Palm Medical Centers, said in a prepared statement.

Founded by Dr. Brian Byrd, Texas Family Medicine has been serving residents in Southwest Fort Worth since 2001. Fort Worth Primary Care is owned and led by Dr. Morvarid Rezaie, who has spent 15 years in the Fort Worth Medical District.

Combined, the two clinics offer four primary care physicians and four advanced practice providers on staff.

“The aging population in North Texas continues to increase at a blazingly rapid pace, and there is a need for additional high-quality physicians to provide our patients with a genuinely personalized patient experience,” Byrd said. “Fowad has been a friend to physicians in Fort Worth for over 20 years. I am pleased to work with him again to bring other independent doctors together to help improve patient experience throughout our community.”

Palm Medical Centers will also establish its Texas corporate office in Fort Worth as it expands into the state.

“While a location for the office has not been solidified, the provider is looking into Central Fort Worth,” said Dana Tarrant, VP of Operations for Palm’s Texas Market.

Founded in 2013, Palm Medical Centers offers primary care services through 32 locations across Florida. The provider plans to expand further across North Texas with openings scheduled through 2024.

 

Source: Dallas Business Journal