How Is Technology Affecting Healthcare Real Estate?
The healthcare industry is changing so fast that it’s hard to keep up with the effects it’s having on medical office buildings. We talked with Irgens healthcare real estate developer Christopher Bowen, one of the panelists at Bisnow’s 5th Annual Healthcare Real Estate event, 7am June 23, at Trump International Hotel and Tower, about the all the changes and what the future may hold for medical office buildings.
1. Decentralizing Will Continue
What was common 30 or 40 years ago—neighborhood medical centers, or what Christopher calls doctors “hanging a shingle” to announce they’re open for business—is back in a big way. Christopher says physicians never truly got away from having a personal touch with their patients. But the ongoing trend of healthcare groups moving to where their patients live has doctors embracing a management model requiring them to be in neighborhoods, something that can’t happen if they remain on a centralized campus.
2. Patients Are Getting Involved
The relationship between patient and doctor has also evolved. Patients (as consumers) are more responsible for paying their share of healthcare costs and are doing more research and are better educated on their healthcare options. This has an interesting translation on healthcare real estate in that both provider and patient are auditing what makes sense and what doesn’t when it comes to patient care. Christopher says this can be tough as providers engage with patients on life issues, but it isn’t insurmountable. If a doctor is plugged in and on top of the constant technological advancements, it becomes easier to engage with patients and services on a regular basis.
3. Bigger Data Center Footprints
30 years ago, Christopher says physician groups wanted electronic records as they realized that having all the info on a patient, and standardization of record keeping, would streamline the relationship between provider and patient. Now, tech has surpassed healthcare and the industry is playing catch-up, a notion that is simultaneously exciting and frightening. Chris calls this the biggest change happening in the history of healthcare real estate because there are no longer any excuses for a lack of accountability. Technology is also having a major effect on bioscience facilities. These used to be around 70% lab space. Today’s bioscience buildings are 30% lab, with the rest dedicated to IT. Researchers are simulating a lot of what used to be done in a lab, and all of a building’s design elements are tied together through tech.
4. Better MOB Designs And Strategy
Chris predicts a return to the days of multi-tenant, multi-specialty office buildings, but that will only happen when providers develop strategies to fill in the gaps. No one building type will do that; it will be about a series of building and service types that have to integrate within a market. Ultimately, it will be a matter of planning and the need to place shops in areas of convenience and within pathways for the market to access. To learn more, please attend Bisnow’s 5th Annual Healthcare Real Estate event, 7am June 23, at Trump International Hotel and Tower. Register here.
