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The CARES Act Is Positioning Healthcare Real Estate For A Bright Future

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The Coronavirus Aid, Relief, and Economic Security Act, known as The CARES Act, was passed with great fanfare and a lot of promise.

In a lot of ways, it hasn’t lived up to that hype as small businesses struggled to get the help that they needed. But Kyle O’Connor, President and Founder of MLL Capital, which owns medical and life sciences facilities, thinks one sector was well-positioned to benefit from The CARES Act.

“One of the things that has been a big help for the medical industry has been The CARES Act, whether it be the payroll protection program [PPP] or the other funding that went to the health systems,” O’Connor says. “That has, I believe, helped quite a bit.”

O’Connor thinks the medical sector has received many benefits from the act that haven’t been there for other sectors.

“If you look throughout the economy, not every type of business was as well suited as the health care industry was to take advantage of the payroll protection program,” O’Connor says.

The employee size limitation for PPP grants is 500 employees. Since most medical offices won’t clear that threshold, they are great candidates for that funding.

“Most medical practices plan to rehire all of their laid off or furloughed employees given they expect demand to resume,” O’Connor says. “It’s also important to note that the health systems received/will receive funding from other elements of The CARES Act. In the medical field, The CARES Act has allowed doctor’s offices to keep critical medical workers employed. The doctors can only see so many people. So the nurse practitioners, the administrative staff, all the nurses that support each individual practice are a pretty important part of the system.”

Doctors are also adopting things like telehealth to offset a decline in office visits.

“The occupiers in our buildings were organizing themselves for dealing with the issues that have been caused by the stay-at-home orders,” O’Connor says.

Once the COVID crisis eases up or clears, O’Connor does not doubt that patients will return to medical offices. And demand could be even more significant as there is pent-up demand for medical services.

“They’re going to be much more comfortable going back to the doctor, and there will be a flood of requests for appointments,” O’Connor says. “There will likely be greater levels of health care that is being provided as the impact of the stay-at-home orders dissipates.”

The support from The CARES Act, in addition to the resilience of the sector, has made O’Connor optimistic about its future.

“Medical offices and life science property types have a defensive element to them,” O’Connor says. “We are going to hold their value better than some of the other property types.”

 

Source: GlobeSt.

Survey: Healthcare Designers Look To Future Of Medical Facilities In Light Of COVID-19 Pandemic

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The American College of Healthcare Architects (ACHA) has released the key findings of a survey of its members revealing their insights on the future of healthcare architecture and the role of design in the context of the COVID-19 healthcare crisis.

“The extensive experience of ACHA’s healthcare architects gives us unique insights into how this pandemic will shape the future of healthcare,” said Vince Avallone, AIA, ACHA, CASp, LEED AP, the ACHA‘s President. “These findings will influence the design of hospitals and healthcare environments for years to come.”

ACHA Coronavirus Survey Reveals Healthcare Designers’ Role In Addressing The Pandemic

The ACHA survey revealed:

• Over 63% of respondents helped clients evaluate alternative care sites.

• Over 60% of ACHA experts were called on to help healthcare systems increase capacity – 28% created over 100 beds.

• Over 70% of respondents believe design for mass casualty patient surges will be an important element for hospitals in the future.

• Over 80% of respondents thought the telehealth boom would have major impact on facility design.

ACHA surveyed 129 certified professional healthcare designers to reveal lessons learned from COVID-19 and the role of architects in addressing the crisis. Participants represent areas across North America, including many severely affected states such as New York, New Jersey, Illinois, Massachusetts, California, and Pennsylvania.

What Will Happen With Healthcare Facilities After The COVID-19 Pandemic?

The survey also identified the healthcare designers’ concerns about the future:

• How can hospitals be designed so normal operations (such as elective procedures) can continue through a pandemic so as not to disrupt regular patient treatment and create financial shortfalls for providing institutions?

• With the likely implementation of restrictions on patient/visitor traffic flow to control cross-contamination, how will this transform facility intake and entry design?

• How will increased restrictions placed on patient/visitor traffic flow to control cross-contamination transform facility intake and entry design?

• How can architects emphasize building flexible, adaptable facilities that can be easily modified to allow a quick response to changing medical priorities?

• How can healthcare and non-healthcare facilities be designed to handle patient overflow in a more expedient fashion?

ACHA Member Represent The The Top U.S. Healthcare Design Firms

“ACHA certificate holders represent a majority of the nation’s top healthcare design firms,” said Avallone, a Vice President/Senior Medical Planner at SmithGroup. “These results show our continuing commitment to help develop solutions for future healthcare design challenges. ”

For the full results of the survey, click here.

 

Source: Building Design+Construction

Innovation In Healthcare Technology Changing the Game For Hospitals And Healthcare Centers

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Innovation in healthcare technology has changed the rules of the game for hospitals and healthcare centers. It has and continues to do so.

As in other industries, healthcare will be disrupted by advancements in technology like telemedicine and virtualized care programs, which are already rising in popularity with patients.

But how will it impact brick-and-mortar space? Panelists at the recent RealShare Healthcare conference here in Scottsdale, AZ, said that telemedicine will not replace the need for office visits. Panelist say it will not take away from the real estate.

“What it will do is create efficiency” according to Justin Brasell, EVP of healthcare advisory services at Transwestern. “We are missing a lot of people due to inefficiencies. We will continue to see more admissions and I think telehealth is also a differentiator.”

He pointed out that when you are a physician that offers telehealth, it is about hook/add for your patient to come back.

“Telehealth will continue to drive occupancy and real estate but it will change what that real estate looks like. It is a great compliment to real estate and supercharge,” Brasell said.

Brasell is hyper focused on standardizing the physician clinic and piping in fiber for additional technology in the space.

“The future is about standardization and flexibility within the new construction developments,” Brasell said.

Jake Dinner, SVP of development at PMB said that if you take a step back from the layout of the space, the strategy behind the clinics really get into the data and determining the right size for the building, what are the service lines and when are they going to come available etc. so you can plan for future growth.

“We try to use data as much as possible. We work with clinical analysts to determine what needs to go into the building paired with telehealth,” Dinner said. “It is about being strategy based.,”

When asked about risk in telemedicine, Dinner doesn’t see the risk in it and says health systems mitigate risk as much as they can.

“The biggest thing with the evolution of telehealth will be education of the providers,” Dinner said. “The place healthcare technology will be most vulnerable will be the patient data for healthcare systems, which are 200 times more likely to get hacked than any other industry. There has been a huge influx in cyber protection and that impacts real estate because it significantly impacts their bottom line and they are looking to the real estate side to help with that.”

 

Soure: GlobeSt