Aliso Viejo Medical Center – Aliso Viejo, CA

LifeCare Hospitals of Plano – Plano, TX

Healthcare in the US is entering a brave new world where rapid change is the norm. Older hospitals have become obsolete, physically and operationally, and many have become distressed to the point of bankruptcy. Moreover, populations have shifted away from centralized hospitals, most of which were built shortly after World War II. At the same time, demographic and political trends are creating tremendous pressure on the healthcare system by sharply increasing the overall need for medical care.
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• Significant M&A activity between hospitals and providers

• “Deconstruction of the Hospital” moving from inpatient to outpatient “off campus”

• New development of “Super Clinics” anticipating 32 million new patients

• Emphasis on community based urgent care rather than emergency room

• LEED certifications – incorporation of Lean architecture principles to create efficiencies and maximize patient “through-put”

• Real estate became relevant to hospital executives – Cost containment and utilization

• Lease rates have stabilized and increased in some markets

• CAP rates for MOB sales have compressed, up to 100 basis points in 2013 over 2012

• MOB sales volume w...

As medicine moves out of the inpatient setting and into the outpatient setting, everything from minor surgical procedures to ambulatory care will need to be supported in a medical office building (MOB). The mechanical, electrical, and plumbing (MEP) challenge of this new model is to design MOBs with enough flexibility to anticipate future growth and change, right from day one.

There are two building methods employed to ensure future flexibility in today’s MOBs: the full core, shell, and interiors build-out and the infrastructure-ready facility. Each has its own advantages and challenges, and can support a wide variety of tenants.

The build-out

In a full core, shell, and interiors build-ou...

The Health IT space is strong and is growing at a tremendous rate. Georgia, for example, has more than 186 companies operating in the Health IT space, employing over 15,000 people and growing at an aggregated 40% rate*.

In recognition of the strength of this sector, Modern Healthcare recently published an article highlighting the role mobile apps play in the healthcare space and sharing several important trends.

Highlights from the article follow.

What is the adoption rate?

stock-footage-good-looking-young-doctor-talking-on-the-phone-and-looking-ipadAccording to a survey of more than 8,600 adults released in October 2013 by Manhattan Research:

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  About 95 million Americans used their mobile phones ...

Hoag’s newest addition: rendering of entrance at outpatient center Hoag Memorial Hospital Presbyterian plans a major expansion of its operations in Irvine after inking a lease for a new medical office complex that will be built along Sand Canyon Avenue.

The Newport Beach-based operator of hospitals, urgent and other healthcare centers said last week it has agreed to lease the bulk of Shady Creek Medical Center, a 157,200-square-foot project to be built at Alton Parkway and Sand Canyon Avenue. The project, across the street from Hoag Hospital Irvine and the Kaiser Permanente Irvine Medical Center, is expected to open in late 2015.

Price transparency in the healthcare industry has become one of the biggest issues in 2013. A new article in the New York Times has dug further into hospital prices and why they appear to lack rationality.

The article, written by Elisabeth Rosenthal, explains that hospital care represents the biggest portion of the country’s $2.7 trillion in annual healthcare expenditures. Ms. Rosenthal interviewed several patients on their healthcare bills, including one who received a bill of more than $3,300 for five stitches.

High hospital prices and chargemasters entered the national conversation this past February in Steven Brill’s massive report for TIME, “Bitter Pill: Why Medical Bill...

Dr. David Kim is ready for the next phase of Obamacare. In January he opened a new office of MemorialCare Medical Group in a former Borders bookstore in Long Beach, Calif. He started out with six doctors; now there are 16. The hiring spree is in anticipation of a rush of new patients starting in early 2014, when more pieces of the 2010 health-care law take effect. “We’ve hired so many doctors in such a short period of time, we have the capacity to take on quite a bit,” says Kim, a family practitioner. “The last thing we want is to expand our practice and then have people waiting for appointments.”

Kim’s preparations are a rarity. The U.S. already has a doct...