CREJ - Healthcare Properties - September 2016
The demand for health care is making a major shift in the way it is delivered. Health care is being rooted into communities and increasing opportunities for real estate investors and developers. This delivery model is focused on convenience and the future demand includes integrating wellness. The traditional medical office building can be found on a hospital campus or off campus within 3 miles of a hospital. The optimal tenant mix is multispecialty physicians such as primary care, surgeons, pulmonary, neurology, women’s health and rehab. These MOBs typically are open Monday-Friday from 8 a.m. to 5 p.m. and generally have long hallways with doors to the various independent or group practices. The next generation is demanding a fundamental change that includes more value. They are challenging their providers to move away from the isolated practice of treating disease and promoting the incorporation of wellness. Medical wellness facilities. Wellness is more than health or the absence of disease. It is being mentally and emotionally balanced, physically active, spiritually healthy and socially comfortable. Nonmedical, non-emergent needs are often intricately tied to personal health and well-being. The future vision is to merge the two disciplines by creating medical wellness facilities. The tenant mix may include family physicians, urgent care, specialist(s), therapy, screenings, a fitness center, wellness programs, nutrition coaches and healthy dining facilities. Real estate developers and investors play an important role in creating these aforementioned facilities designed to encourage communication, collaboration and working as a team. Colorado Gov. John Hickenlooper made a commitment to make Colorado the healthiest state. According to a report published in 2013, too often, individuals are not receiving the right care at the right time in the right care setting or experience problems that prolong their recovery from illness or injury. Although Colorado ranks 10th among states in healthy living, it ranks 28th in prevention and treatment. Partnership delivers the new model of care. Penrose-St. Francis Health Services and the YMCA of the Pikes Peak Region have formed a partnership to deliver this new model of care. A new 53,000-square-foot building in Monument, Tri-Lakes Health Village, increases access to multiple services at one location. It includes urgent care, primary care, rehab, occupational medicine, imaging and specialty services, all while providing child care for those receiving health care services. A healthy café in an atrium unites the Tri-Lakes YMCA with the new health pavilion. “Our neighborhood health centers are where you work, play, live and pray,” said Rob Nartker, South State Operating Group, vice president, Centura Health. According to Nartker, utilization at the Tri-Lakes facility continues to increase and customer and provider satisfaction is high. The health care providers occupy approximately 60 percent of the building with 40 percent dedicated to wellness. The Boldt Co. is the owner and developer of the health village that connects to the YMCA. Boldt facilitated the communication that brought both Penrose and the YMCA to the table but credits the leadership in both organizations for getting the project off the ground. Margaret Sabin and her team at Penrose-St. Francis Health Services and Dan Dummermuth and his YMCA team were crucial to this forward thinking project. “We are not just building buildings, we are building a culture,” said Lonnie Cramer, chief operating officer at Penrose Hospital in Colorado Springs. “The vision comes from the top as we create healthy neighborhoods all-inclusive of wellness and health care.” Penrose-St. Francis Health Services is an entity of Centura Health, based in Englewood. Colorado young population growth. According to The New York Times, Denver has become a powerful magnet for the young and educated population, up 47 percent since 2000. Colorado has what young people want, including mountains, over 300 days of sunshine and jobs in booming industries. It ranks third in the nation for population growth of college graduates. In fact, Colorado’s 25- to 44-age group will continue to be the largest percentage of the population over the next 20 years, according to the Department of Local Affairs. Colorado has the economic base and vitality to incorporate additional medical wellness facilities. It is ranked No. 1 in lowest obesity, No. 2 in lowest diabetes and No. 6 or higher for five of the six key areas surveyed: life evaluation, emotional health, work environment, physical health and healthy behaviors. The future generation demand, largely focused on convenience and integrated wellness, is a tremendous opportunity for the health care real estate and development community.