The healthcare industry continues to grow in the masses as more and more people become obsessed with their general health. However, not only is your own health a concern with these trends but it’s also impacting aspects of real estate too, particularly with our families. Here is an overview of how the healthcare industry is impacting real-estate.
Growth of small hospitals
With higher demand for healthcare needs, there has been a recent surge of smaller practices opening in and around local areas. This is due to more people needing immediate care and requiring clinics that can provide a service that has a specialism, such as distributing magnesium tablets, for example, around suburban and urban areas. These facilities are essentially hospitals on a smaller scale which have been created in areas that are a far distance from main base hospitals.
Expansion for existing sites
Some healthcare services may also have the benefit of unused land around their existing site. This can save time and money compared to building a brand new site which will be a great bonus for the health system. It prevents some areas being cornered off or not being able to be used at all. This can also save an inconvenience for the existing patients that go to the site already.
Potential consolidation
It’s being predicted by some experts that there will be less independent hospitals and health systems in years to come. It’s likely that independent health systems will more than half within the next few years whilst no independent hospitals are likely to exist in the next 5 years.
Rehab hospital increases
To avoid paying penalties in readmission for conditions that could potentially be avoided, hospitals may be looking to improve their health systems by increasing their rehabilitation services. Some of the options will include partnerships with rehab specialists so that patients can receive better aftercare after discharge. This may include improving one-to-one sessions, increasing the resource of high strength supplements to aid recovery or invest further into rehab therapists.
New leasing agreements
The Financial Accounting Standards Board have introduced new accounting rules which will impact leasing agreements. It means there’ll be less flexibility for providers on how they can classify their leases. Instead, they’ll be classified as financing leases which act as debts on the balance sheet of the lessee.
At first, the last possible impact that healthcare could have on a sector would the commercial real estate industry. However, looking at it from a wider perspective there are several considerations to be aware of, particularly for private and independent healthcare facilities. Keeping an eye on healthcare trends such as these are crucial if you’re looking to get into healthcare and start a digestive health supplements business, for example.