Improved liquidity in capital markets in conjunction with future demands for healthcare services will lead to increased ambulatory care, mergers and acquisitions and cost containment efforts, according to Jones Lang LaSalle's Healthcare Real Estate Spring Outlook.
Under the new healthcare reform law, more than 32 million individuals will become insured by 2014, meaning demands for healthcare providers and services will dramatically increase. Jones Lang LaSalle experts believe this increased demand will drive a stronger demand for healthcare real estate, particularly medical office buildings and other ambulatory care facilities.
The Jones Lang LaSalle report includes several other predictions:
Mergers and acquisitions will further accelerate growth. The main consolidation trend affecting healthcare real estate in the months to come will be a significant uptick in mergers as providers seek to capitalize on economies of scale and mitigate the impact of reduced rates of reimbursement.
Ambulatory facilities will serve greater demands. In 2014 when 32 million Americans become insured, there will be a need for 64 million additional square feet of medical space. Much of that will come in the form of medical office buildings, hospitals without beds, or other ambulatory care facilities.
Cost containment strategies are on the rise. Hospitals that are most cost-effective will be rewarded under healthcare reform. Those systems that enact changes to curtail their existing costs by eliminating inefficiencies will be the front-runners in the race to provide streamlined, quality healthcare.
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Michigan's Beaumont Hospitals Partner With Global Real Estate Firm for Management Services
Under the new healthcare reform law, more than 32 million individuals will become insured by 2014, meaning demands for healthcare providers and services will dramatically increase. Jones Lang LaSalle experts believe this increased demand will drive a stronger demand for healthcare real estate, particularly medical office buildings and other ambulatory care facilities.
The Jones Lang LaSalle report includes several other predictions:
Mergers and acquisitions will further accelerate growth. The main consolidation trend affecting healthcare real estate in the months to come will be a significant uptick in mergers as providers seek to capitalize on economies of scale and mitigate the impact of reduced rates of reimbursement.
Ambulatory facilities will serve greater demands. In 2014 when 32 million Americans become insured, there will be a need for 64 million additional square feet of medical space. Much of that will come in the form of medical office buildings, hospitals without beds, or other ambulatory care facilities.
Cost containment strategies are on the rise. Hospitals that are most cost-effective will be rewarded under healthcare reform. Those systems that enact changes to curtail their existing costs by eliminating inefficiencies will be the front-runners in the race to provide streamlined, quality healthcare.
Related Articles on Jones Lang LaSalle:
Michigan's Beaumont Hospitals Partner With Global Real Estate Firm for Management Services