Pollock: Developers need to be adaptable and flexible in a market changing at unprecedented rates. This new more distributive network of care coupled with a stronger focus on population health, evidence-based care solutions and implementation of mobile technology mean changes are happening daily. Systems need service providers that are willing to adapt with them and roll up their sleeves to provide solutions that the market demands. What we see in every renewal at Meridian's 115,000-square-foot medical office complex in Pasadena is a requirement to creatively reuse the file room. The implementation of Electronic Medical Records (EMR) has almost entirely eliminated the need for file rooms and, fortunately, we have been able to re-use that space for exam or clinical purposes to accommodate the increase in patients. During the past year, Meridian has had to change its service offering to include the ability to manage our client's build-out of space in a building not owned by us. This is new and exciting for us and makes us more aware how imperative is, now more than ever, to be able to adjust to the client's needs to remain relevant and provide value to the healthcare systems.

GlobeSt.com: You have said that the future of healthcare delivery is leaning towards a “convenience revolution.” Can you tell me more?

Pollock: If changes in delivery and technology weren't enough, there is a seismic shift in demographics. The needs of Baby Boomers, who require far more healthcare, will continue to increase for the foreseeable future, and Millennials, who now outnumber the Boomers, want healthcare that is available near their home, work and with hours that meet their schedules. In the fragmented West Coast market, there is also a drive to capture market share. In addition to the patient experience, the systems also focus on finding locations that can promote their brand awareness. We continue to see visibility, accessibility and convenience at the forefront of every strategy. Based on that experience, I would say that whether you call it retailization or a convenience revolution, it will be central to healthcare delivery systems for the foreseeable future. In 2016, we took a 20,000-square-foot general office building in a tight urban core, which was on the city's historical registry, and converted it into an outpatient clinic by adding an elevator, upgrading utilities and addressing ADA shortcomings.

GlobeSt.com: Where is this sector heading as a result of all these changes?

Pollock: Although change can be daunting this is an exciting time for the whole healthcare industry. Spending the time to develop and vet the right strategy and finding the right partners to execute is the key to successfully building a modern facility that fits with the changing needs of the market. In the face of legislative uncertainty, it is important to focus on operational efficiencies and solutions that provide flexible options until there is more clarity.

The healthcare industry has undergone tremendous changes in the last few years, and now that the House has voted to repeal and replace the Affordable Care Act, the healthcare industry is preparing for more change. For now, developers and providers are moving forward to modernize healthcare and pushing the current initiatives included in the Affordable Care Act. To find out how both developers and providers are adapting to the new healthcare environment and how they are preparing for more changes, we sat down with Meridian CEO John Pollock. In this exclusive interview, he shares his thoughts regarding what healthcare developers should look out for as they navigate the transforming word of healthcare real estate in 2017.

GlobeSt.com: How are providers responding to the repeal of ACA?

John Pollock: Providers are seeking to drive down costs while increasing patient satisfaction. The juxtaposition of an industry working to drive cost out and increase patient satisfaction seems like a recipe for disaster, yet it seems to be working. While healthcare systems continue to push services out of the high acuity settings like hospitals, they are occupying spaces that are far more convenient and comfortable for patients. We have seen significant growth in urgent care centers here in California. When a patient with a non-critical condition is seen in this type of setting, services become far less expensive for the patient, the provider and the insurance companies. The urgent care clinic is almost always quicker and more conveniently located versus a cumbersome hospital campus emergency department. Some states that have seen a proliferation of the Freestanding Emergency Departments (FSED), which are prohibited in California. While these facilities may be opportune, they are not cost effective for non-critical conditions. This year we delivered our first urgent care clinic for a major healthcare system with many more on the horizon.

GlobeSt.com: What about developers of this type of real estate?

Pollock: Developers need to be adaptable and flexible in a market changing at unprecedented rates. This new more distributive network of care coupled with a stronger focus on population health, evidence-based care solutions and implementation of mobile technology mean changes are happening daily. Systems need service providers that are willing to adapt with them and roll up their sleeves to provide solutions that the market demands. What we see in every renewal at Meridian's 115,000-square-foot medical office complex in Pasadena is a requirement to creatively reuse the file room. The implementation of Electronic Medical Records (EMR) has almost entirely eliminated the need for file rooms and, fortunately, we have been able to re-use that space for exam or clinical purposes to accommodate the increase in patients. During the past year, Meridian has had to change its service offering to include the ability to manage our client's build-out of space in a building not owned by us. This is new and exciting for us and makes us more aware how imperative is, now more than ever, to be able to adjust to the client's needs to remain relevant and provide value to the healthcare systems.

GlobeSt.com: You have said that the future of healthcare delivery is leaning towards a “convenience revolution.” Can you tell me more?

Pollock: If changes in delivery and technology weren't enough, there is a seismic shift in demographics. The needs of Baby Boomers, who require far more healthcare, will continue to increase for the foreseeable future, and Millennials, who now outnumber the Boomers, want healthcare that is available near their home, work and with hours that meet their schedules. In the fragmented West Coast market, there is also a drive to capture market share. In addition to the patient experience, the systems also focus on finding locations that can promote their brand awareness. We continue to see visibility, accessibility and convenience at the forefront of every strategy. Based on that experience, I would say that whether you call it retailization or a convenience revolution, it will be central to healthcare delivery systems for the foreseeable future. In 2016, we took a 20,000-square-foot general office building in a tight urban core, which was on the city's historical registry, and converted it into an outpatient clinic by adding an elevator, upgrading utilities and addressing ADA shortcomings.

GlobeSt.com: Where is this sector heading as a result of all these changes?

Pollock: Although change can be daunting this is an exciting time for the whole healthcare industry. Spending the time to develop and vet the right strategy and finding the right partners to execute is the key to successfully building a modern facility that fits with the changing needs of the market. In the face of legislative uncertainty, it is important to focus on operational efficiencies and solutions that provide flexible options until there is more clarity.