Dust off your crystal balls, it’s time to weigh in the emerging trends that are likely to shape ambulatory care and medical office space in the coming year Here are some of our favorite predictions.
#1 Technology
Technology continues to be a dominant force in reshaping healthcare delivery with providers looking to technology to deliver better insight into diagnosis and treatment, as well as expanded options and services for patients needing specialized care. Telehealth, which skyrocketed in popularity during the height of the pandemic, is showing robust staying power. Telehealth, including video conferencing, remote monitoring of vital signs, and electronic communication between providers and patients, lets patients access health care services remotely, which can be especially beneficial for people in rural or underserved areas, or for those who have difficulty traveling to see a health care provider in person. A May 2021 survey by the American Medical Association found that both patients and providers reported largely positive experiences when incorporating tele-medicine or virtual visits in their routine care. These and other technology drivers, such as conversion to electronic health records, requires medical office space that is multi-purpose, secure and adaptable. For example, old records storage space can be converted to telemetry suites or private video conferencing facilities. Physicians looking to improve their patients’ experience can benefit from investment in new technologies.
#2 Medical Office Space in Mixed-Use Buildings
Another trend with staying power is the move towards incorporating medical office space in retail or mixed-use settings, such as shopping centers or strip malls. Once reserved for cosmetic or elective services, this trend is now becoming popular among primary care physicians, specialists, diagnostic testing, and other medical services. There is a growing demand for ambulatory care facilities in a wide variety of locations, as health-care providers strive to reach their patients more effectively through easier access and to serve their patients more economically in ambulatory care settings versus in-hospital care. The use of retail space for medical purposes can be a cost-effective option for medical providers, as well, and can help to integrate medical care into the community and make it more accessible to a wider range of people. Consolidation of sites of care is also a driver in the establishment of newer, more modern and efficient buildings that can deliver operating efficiencies to health-care systems.
#3 Focus on Healthcare Equity and Access
One of the hottest topics in healthcare continues to be the need for policies and practices that address the issue of equitable access to healthcare for all Americans. Policies that bolster the nation’s health systems must serve all individuals and communities to ensure everyone has access to the care they need to be healthy and thrive. Long-term, sustained investment in community healthcare can prevent disease, promote wellbeing, and better prepare caregivers to respond to continuous and urgent threats to global health. Holistically addressing social determinants of health—such as income, education, housing, employment, transportation, environmental conditions, and neighborhood conditions can improve health, reduce racial disparities, and contribute to overll economic mobility.
The benefits of equitable access extend well beyond the individual or local community, but also to the general economy and national security, including workforce productivity, health care costs, and the military fitness. To eliminate disparities that exist in our current economic and social systems, there needs to be intentional focus on rectifying structural and institutional racism. Improving the health of the most vulnerable populations improves overall health outcomes and social well-being for everyone, strengthens our economy and lays the foundation for a stronger, more equitable future.
#4 Ongoing Covid-related Issues
Restaurants and retailers were not the only small businesses to take a financial hit during the COVID-19 pandemic. Healthcare providers in small private practices around the country reported steep declines in patient visits and revenue. Further contributing to the problem, federal aid programs meant to distribute Covid-relief to providers were mostly channeled through existing federal programs. This, unfortunately, failed to address the needs of specialties that do not typically see a lot of Medicare patients, like pediatrics, dentistry or obstetrics. While most practitioners did what they could to incorporate telemedicine or stagger patient visits during the pandemic in order to continue to serve their patients, these measures offset only a small portion of overall loss in revenue.
Even for those eligible for funds, there were signficant problems. In its November 2022 newsletter, the American Medical Association alerted its members that the AMA “is deeply alarmed about the growing financial instability of the Medicare physician payment system due to a confluence of fiscal uncertainties physician practices face related to the pandemic, statutory payment cuts, lack of inflationary updates and significant administrative burdens.” A December 5th article in the Wall Street Journal examined the federal government’s distribution of COVID-19 emergency funding to hospitals through the Provider Relief Fund (PRF) and unveiled concerning details about those who benefitted from government pandemic relief programs, whether they needed to or not, and those who were left out. Clearly there is a growing concern among healthcare providers that the financial repercussions of the pandemic are ongoing, urgent and significant and providers need urgent assistance.
#5 Patient Satisfaction
There’s no question about it—healthcare is quickly becoming a consumer-driven industry. As a result, healthcare facilities must now, mor than ever, compete with one another to gain new patients and maintain their loyalty. For many healthcare systems, that means earning high patient satisfaction scores that demonstrate their value to patients eager to invest in a trusted healthcare partner. Building a robust consumer base isn’t the only benefit of high patient satisfaction scores. Medicare payment systems have shifted in recent years, inextricably linking patient satisfaction scores with reimbursement rates. These shifts have positioned high-quality patient care as essential to an institution’s viability and shapes every healthcare administrator’s patient satisfaction strategy. While tying reimbursement to a subjective satisfaction score can raise serious ethical questions, there’s no doubt that investments which improve overall patient satisfaction can pay off long-term dividends.
The Bottom Line
As we head into 2023, our healthcare delivery system faces continued challenges and yet also new opportunities are arising. As specialists in ambulatory real estate, M-M2 is dedicated to finding innovative and creative solutions for our tenants that solve the real world issues facing healthcare systems and providers today.
