The Healthcare Real Estate Team at Sheppard Mullin attended the SoCal Healthcare Real Estate Summit on October 18, 2023. This event offered valuable insights into critical issues for health systems and those involved in catering to their real estate requirements. Here are the key takeaways from the summit:
- Enhancing Healthcare Accessibility: A central theme of the summit was the importance of improving healthcare accessibility. Panelists stressed the need to establish outpatient centers within local communities. Additionally, panelists discussed the importance of investments in affordable housing initiatives to ensure that patients and the healthcare workforce have suitable housing. Educating patient communities was also a major focus, as panelists noted that informed communities had improved patient welfare and increased patient visit frequency.
- Continuum of Care: Providers and investors are focusing on behavioral health and senior housing. The summit highlighted the recognition of the importance of delivering a comprehensive continuum of care.
- In-Person Care: The coexistence of virtual and in-person treatments presented challenges on the design of medical office space. Developers and architects are working on creating a more home-like atmosphere in medical buildings. Panelists noted that demand for in-person care remains strong, particularly among the aging population, who prefer in-person visits for both routine and critical healthcare needs.
- Use of Existing Facilities: An innovative approach to development involves the adaptive reuse of existing facilities to align with the evolving demands of healthcare delivery. This approach minimizes disruption to surrounding communities.
- Utilizing Technology: The use of AI and robotic technologies is on the rise within the healthcare industry. These technologies are being harnessed to enhance the skills and productivity of healthcare workers. Industry leaders are also exploring AI and robotics to optimize medical building design and master planning.
- Capital Constraints: Persistent capital constraints in the healthcare industry are forcing industry leaders to navigate market dynamics, particularly interest rates, to secure funding for essential developments. Lenders are employing innovative approaches to secure funding, even in the face of market liquidity challenges.
Panelists reassured summit attendees that brick and mortar healthcare facilities are here to stay, as they continue to strive to deliver care in local communities while addressing social determinants that affect access to care. The Healthcare Real Estate Team at Sheppard Mullin is committed to finding innovative solutions to address these challenges. We assist our clients in leveraging and developing their real estate assets to enhance the patient care experience. Providers expressed the view that health care should be accessible to patients where they reside, and there is a growing demand for in-person care in the community.
The SoCal Healthcare Real Estate Summit provided a fantastic opportunity to network with industry leaders and gain insights from prominent developers, investors, brokers, designers, and fellow attorneys. It was an invaluable event for our team, allowing us to stay at the forefront of healthcare real estate trends and innovations. We look forward to continuing to serve our clients and contribute to the improvement of healthcare accessibility and the patient care experience.