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SCOTTSDALE, AZ—“We can expect to see more of the trend toward efficiency and consolidation in the healthcare space.” That is according to panelists at Thursday's RealShare Healthcare conference here in Scottsdale, AZ.
According to Julie A. Johnson, principal of the health care affinity group at Avison Young, who spoke on the “Healthcare's Shifting Facility Needs” panel, since the affordable care act, the average clinic size has grown. She said it might have been around 2,500 square feet previously but is now typically starting at 5,000 square feet and can go up to 15,000 square feet. The reason for the growth, she said, is due to adding more services, labs and more with the growth of outpatient clinics rather than in the hospital.
Johnson added that “Consolidated services and efficiencies of these facilities to keep people near their neighborhoods is a trend we expect will continue.”
It is all about market share, and competition has heated up in a big way,” explained Michael A. Noto, SVP of real estate services at Welltower. And technology, he said, has allowed for more out-patient procedures, so it is definitely a competitive strike.
“Smaller facilities that are around 10,000 square feet to 18,000 square feet are more prevalent, but we also see more regional centers being fed by smaller clinics and smaller communities,” Noto explained. “The gloves are off. There will be far fewer hospitals and hospital assets will be owned by the five larger entities in the country.” He also added that there has been a movement, particularly on the for-profit side, on branding.
Check back with GlobeSt.com for more from this panel and more from the RealShare Healthcare conference. And click the stories below for more healthcare related coverage.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
