With all the challenges on healthcare executives’ minds, real estate doesn’t often rise to the top of a list of possible solutions. But healthcare leaders might want to take another look: Strategic opportunities exist within healthcare real estate that can improve patient care and experience, maximize efficiency and reduce operating costs. In fact, at a time when many healthcare organizations are facing aging infrastructures—and scarce resources—reviewing their real estate portfolios could unveil untapped potential. “Conducting regular portfolio assessments and evaluating the spaces that you and your caregivers, patients and communities are cared for in can help you identify opportunities for consolidation, space redevelopment, cost reduction and freeing up capital for patient care investments,” says Alison Flynn Gaffney, FACHE, president, Healthcare Division, JLL. Following is a look at how an effective real estate and facilities management strategy can reveal such opportunities, including those that support quality care, enhance patient experience, and serve as recruitment and retention tools. Ensuring Safer SpacesStrategic use of real estate assets can help create enhanced healing environments. That includes thoughtfully designed spaces that support health and safety, infection control, privacy and security. “Every healthcare organization’s top-of-mind focus is delivering high-quality, safe care,” Flynn Gaffney says. “That starts with ensuring that your real estate portfolio meets all your regulatory standards and quality accreditation requirements.” Developing and maintaining environmentally sustainable buildings also is essential, including the use of eco-friendly building materials and implementation of proper ventilation systems and sustainable lighting. “You must be thinking of the care and safety of all the humans occupying a space in your buildings at all times,” Flynn Gaffney says. “Real estate experts can help organizations prioritize sustainable building practices and focus on creating healthy environments.” Integrating technology by making buildings as “smart” as possible can also aid in sustainability efforts by increasing energy efficiency, which, in turn, helps reduce costs. Real estate experts can work with organizations’ facilities management teams on capital planning and project management. “For example, a large academic medical center saved nearly $9 million just within its energy and sustainability work in the first five years of the program,” Flynn Gaffney says. Enhancing Patient Care and ExperiencePatients today have more choices than ever about where to seek care, making the look, feel and navigability of care environments even more important. Real estate developers and facility designers can create healthcare spaces that promote well-being and healing by incorporating natural light, soothing colors and other design principles, and amenities such as health and wellness facilities. “The features can help reduce stress and anxiety for patients, which improves the overall experience,” Flynn Gaffney says. “A more focused approach to your real estate portfolio can also provide private and comfortable spaces for patients to receive care.” Examples include separate waiting areas for specialties and subspecialties and soundproofing measures. Focusing on patient-centered layouts is also key to enhancing patient experience. This includes ensuring patient-friendly navigation throughout campuses and facilities, minimizing walking distances and using clear signage, which all reduce confusion and improve efficiency, according to Flynn Gaffney. Finally, overall accessibility is essential for patients and caregivers. That means considering proximity to public transportation and major highways and providing accessible amenities, such as ample parking, wheelchair ramps and well-designed entrances, all choices Flynn Gaffney says are aimed at removing potential barriers to care. “Every decision a healthcare executive or provider makes is with the patient and caregiver front of mind, and real estate is no exception to that,” Flynn Gaffney says. Making sure patients’ and caregivers’ voices are heard when it comes to decisions about design and other initiatives is critical, she says. To that end, organizations should consider developing community boards that literally give patients a seat at the table. “Having a community board that includes patients as part of design and strategic planning initiatives has been very successful in many organizations around the country,” Flynn Gaffney says. Boosting Recruitment and RetentionAttracting and retaining clinicians and staff has become a top priority for healthcare organizations. That’s no surprise, considering that for the third year in a row, hospital CEOs have cited workforce challenges as their No. 1 concern, according to the American College of Healthcare Executives’ 2023 survey of top issues confronting hospitals. The same elements that attract patients to healthcare facilities also can play a role in attracting caregivers. “Some systems around the country are investing very deeply in amenities that support not just their patients but their workforce because it’s so competitive,” Flynn Gaffney says. “If you don’t have enough trained and qualified people, you cannot provide the high-level quality of care and excellence you need as a healthcare organization to support your mission.” Healthcare organizations should look to incorporate shared spaces that create a “community of knowledge transfer” among caregivers, Flynn Gaffney says. In addition, a focus on convenience is paramount to promote work-life balance and prevent burnout. Healthcare leaders should consider how they can support their team members 24/7, according to Flynn Gaffney. “Some of these lessons came out of the pandemic, such as having on-site grocery options and other features within your spaces and in your facilities to provide nourishment and care for your caregivers and incorporating ‘quiet’ or meditation spaces to reduce stress,” she says. Aligning With Strategic Real Estate PartnersWhether it’s redeveloping or repurposing existing assets, exploring shared spaces with other healthcare providers, or updating a facility’s infrastructure to enhance its technological capabilities, there are myriad opportunities for harnessing real estate in healthcare. Doing so successfully, however, requires aligning with the right strategic partners. Flynn Gaffney’s advice to healthcare executives seeking a real estate partner is to zero in on experts who are attuned to healthcare trends and can anticipate—and navigate—healthcare organizations’ needs in a constantly changing landscape. “You want a partner that understands healthcare—one that can leverage their market knowledge, financial modeling and insights to make informed decisions, negotiate favorable terms on your behalf and navigate the complexities of our healthcare field and complex real estate transactions,” she says. Perhaps above all, healthcare organizations seeking a
