Developing Healthcare

Healthcare reform is by far the most dissected, discussed and debated topic in the medical industry.  Federally mandated healthcare legislation, and the yet to be determined detailed fine print, influences every decision a hospital executive considers on a daily basis. It may come as a surprise then that hospital executives are moving forward with construction projects even though they are not certain about the ramifications health reform will bring.

According to an ASHE 2010 Construction Survey published in Health Facilities Management Magazine, 32% of hospitals have not yet determined the impact health reform legislation will have, yet plan to proceed with projects already on the drawing board. Interestingly, 19% of hospitals said they were more likely to move ahead with planned projects, but are re-evaluating with health reform in mind. Only 12% of hospitals made the notion that health reform curbed their construction projects until it could be safely navigated.

A large component of this uncertainty stems from reimbursement policy. Whether hospitals will switch to Bundled Payments, Value Based Purchasing, or possibly an Accountable Care Organization is a looming decision.  While renovations are taking place, we are seeing a surge in specialty hospitals focusing on outpatient procedures. There is a movement away from lavish hospital lobbies and purely aesthetic hospital designs. Hospital construction is on par with technology demands and continues to move forward as the influx of baby boomers arrive and possibly the mass of newly insured Americans in 2014.

While the effects of healthcare reform are uncertain two facts remain:  reimbursements will continue to dwindle and health systems will need to find more efficient methods of delivering healthcare.  For more trends in medical real estate see my post on Healthcare Reform Trends or friend us on facebook and follow us on twitter to hear about health facility and medical real estate trends.

I enjoy hearing your comments so feel free to add your thoughts on a healthcare topic of your choice.