Telehealth and Healthcare Real Estate Trends
The Impact Telehealth Has Had on the Healthcare Industry
The COVID-19 pandemic has presented significant challenges to the care-delivery landscape. Healthcare providers have had to seek new ways to serve patients while not contributing to the rapid spread of COVID-19. Many health systems and medical practices found a solution in virtual care. The terms telehealth, telemedicine, and e-health have different meanings when used clinically or legally, but for the public, they are used interchangeably to refer to care provided without being in the physical presence of a healthcare provider. Telehealth visits can take place via phone call, email, text, or video call, and they are being used to make healthcare more accessible for non-urgent health appointments and follow up appointments.
The positive impacts of Telehealth:
Healthcare is more accessible to people who live in rural or isolated communities
Services are more readily available and convenient for patients
Improves communication and coordination of care among members of healthcare team and the patient
Expanded patient base
Virtual care is cost-efficient
The challenges/drawbacks of Telehealth:
Virtual visits lack an in-person evaluation, which may hamper accurate diagnosis
Most accessible doctor and appointment may not be with your primary doctor
Insurance reimbursement for telehealth still varies by state and type of insurance
Technical training and equipment
Other Commercial Real Estate Healthcare Trends
Non-Critical Care Moving to Outpatient Facilities
The increase in value-based payment methods is continuing to impact shifts from inpatient to outpatient care to reduce total costs of care and improve the overall patient experience.
Re-evaluating Non-Revenue Generating Space
Large organizations are using their scale to invest in IT tools and programs that give employees greater flexibility to work remotely. The virtualization and gig economy has already begun and will be in full effect in health care over the next several years.
Providing employees that flexibility can provide cost savings in real estate expenses and increase employee retention and wellness.
Industry Consolidation & New Entrants
There are conflicting views about what all of this means. Some see the consolidation trend as a movement toward lower costs and better care, as smaller hospitals become affiliated with bigger integrated delivery networks (IDNs) and better technologies. Others, however, are concerned about the growing power of healthcare industry giants. Financial pressures will continue to be prevalent as more providers see a lifeline in partnering with larger organizations to remain competitive in today’s health care landscape. Expect to see more large health systems as organizations try to monetize large investments and drive synergies from scale. Either way, this trend is here to stay—and is even slated to accelerate over the next few years.
Have questions about how these trends impact your real estate needs? Contact a Rokos broker today.
Rokos Advisors is an award-winning Minneapolis – St. Paul based commercial real estate/tenant representation firm specializing in helping businesses find the perfect office or industrial space for their company.
*Article authored by Jake Sampson - Senior Associate