Posts Tagged ‘medical office’

Wanda Jones: Time to Reinvent Hospitals and Medical Office Buildings

Wednesday, September 9th, 2009

great_ormond_st_readyHospitals and medical office buildings must undergo a complete rethinking to move them functionally and architecturally from the 1970s to models that make sense for the 21st-century.  Wanda Jones, healthcare futurist and president of the New Century Healthcare Institute, believes that we need to reinvent hospital design and construct linear-spine facilities that provide patients with more personalized medicine.  This anticipates expansions, contractions, removal and replacement of patient towers by dividing the number of patient beds into two, three or four towers.  This way, they can be incrementally changed without interrupting the others and are readily adaptable to specific programs.

In a recent interview for the Alter+Care Podcasts on Healthcare, Wanda Jones discusses the paradigm shift in terms of new technologies that will make obsolete the knowledge base on which healthcare systems, hospitals and physicians have made money up until now.  Every surgical specialty will use robotics, and cures for cancer will be based on technology that has arisen out of the human genome project.  The New Century Healthcare Institute is a research-and-development and educational foundation devoted to population-based planning and adaptation of the healthcare system to future conditions.

Medical Office Buildings a Sound Investment, Despite Recession

Thursday, July 23rd, 2009

In an environment where flat is the new up in the world of commercial real estate, medical office buildings are performing better than other properties.  In May, Industry Insights published two papers written by the Houston-based investment firm, Cain Brothers, which stated that this is a good time for health systems to sell real estate assets to raise needed cash.kaiser-_office_interior1-copy

Make no mistake, medical office building values are showing some slippage.  “We’re seeing values go down, but nowhere near what is going on with traditional office buildings,” said Tom Dalcolma, a partner in Street Sotheby’s Medical Realty Advisors.

A Real Capital Analytics study performed in May found that three percent of commercial office buildings were in bankruptcy, foreclosure or some form of distress.  Only one percent of medical office buildings were in similar straits.  Medical office building sales volume fell 20 percent over the past 12 months, compared with 51 percent for other office buildings.  The report concludes:  “Medical office properties have proven to be a safe haven, and this niche has little trouble.”

Interest in medical office buildings is growing because investors recognize that healthcare spending is not being impacted as harshly as the rest of the economy.  As minor medical procedures move from hospitals to offices, the demand for new facilities is increasing.  There were 600 million outpatient visits last year.  And that will only increase as the population swells by 45 million during the next 10 years.