New Healthcare Projects Focus on Integrated Wellness
Developers are betting that combinations of medical care, social services, and behavioral health could improve treatments and be profitable.
From urgent care to supportive housing, Riverside University Health System (RUHS) and healthcare real estate developer PMB think their new 445,000-square-foot Wellness Village will transform healthcare by integrating behavioral health treatment with medical care and social services.
The public-private partnership project, which is expected to be complete in 2026, is part of a growing direction in healthcare CRE investment and development.
In March, Didier Choukroun, founder of investment company SPHERE Investments — a project of Flagler Healthcare Investments — told GlobeSt.com that he wanted “to not only expand geographically, but we expanded the mission and repositioned the entire company.”
He saw a need to look at social drivers of healthcare, including environment, nutrition, education, housing, and transportation. The firm is also focused on senior living and care, including independent living, assisted living, and memory care.
“I think the business model of senior living in the US is not functioning; 98% comes from the inclusive rental of the bed,” Choukroun says. “Every single operator fights on price. It’s their only strategy.” Instead, they should be looking at both healthcare and non-healthcare services for the residents, including wellness, adult day care, and transportation. Management fees are 5% of revenue. “There is no way the manager can focus.”
“One ‘pro’ is that this type of colocation is great from a visibility standpoint — the person seeking care knows where to go and doesn’t feel lost,” Maggie Mitchell, senior interior designer with the Atlanta office of Dyer Brown & Associates, tells GlobeSt.com. She said that the combination of behavioral health, medical care, and social services have appeared in community-based health centers before.
Elisandra Garcia, an architectural designer serving as Director of Engagement for national firm El Dorado, tells GlobeSt.com that such integration has “substantial benefits” for real estate development and community health.
“This approach reduces the logistical and financial burdens on patients, making it easier for them to receive timely and coordinated care,” she said. “Furthermore, integrated facilities foster collaboration among healthcare providers, improving communication and efficiency, which enhances patient outcomes.”