As healthcare providers continue to reshape their businesses and face the challenges of the ever-shifting healthcare industry landscape, finding cost savings becomes critical to maintaining competitiveness. Despite significant investments in real estate and facilities, these assets are often overlooked as a potential source of cost savings and available capital.
In other industries, there are methods and strategies commonly used to create value and enhance efficiencies through real estate and facilities management. Surprisingly, these approaches are often underutilized by healthcare organizations. In this era of value-based healthcare, hospitals, health systems, and large physician practices – collectively referred to as “providers” – are scrutinizing their clinical business units, staffing models, and payor relationships to determine where costs can be reduced and efficiencies can be found.
To uncover the strategic and financial opportunities arising from real estate optimization, four key areas should be analyzed. Each of these areas will be discussed in further detail in the following sections:
- Portfolio Performance
- Operational Strategies
- Capital Strategies
- Risk Mitigation
While most healthcare organizations can profit from proactive real estate management and operational best practices, certain ones may be more likely to be impacted by the benefits. These include:
- Large physician practices with multiple locations,
- Multi-hospital health systems,
- Academic health systems which have traditionally owned their real estate,
- Acquirers in pending or recent hospital mergers,
- Providers evaluating staffing and cost containment within their existing portfolio, and
- Providers evaluating capital strategies to support market expansion.
Realty Trust Group provides a comprehensive range of healthcare real estate advisory, development, operations, transactions and compliance services. With a track record of successfully advising clients on various real estate optimization strategies, we recognize that there is no one-size-fits-all solution. We are committed to providing an objective assessment in every client engagement.
To read more on Healthcare Real Estate Optimization, check out our white paper, “Healthcare Real Estate Optimization.”
Visit our dedicated page for insights into Healthcare Mergers and Acquisitions services, and for a comprehensive understanding of all RTG services, we invite you to explore our capabilities page.
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