CEO Ajay Kapoor on Trends in Medical Office Buildings: Insights from BOMA MOB 2021
I was very grateful to participate in the BOMA International Medical Office Buildings + Healthcare Real Estate Conference last week in Dallas. Not only was it a great way to connect with many of you, but it also provided a glimpse into the current and future state of the industry. I wanted to share with you some large takeaways from the conference and conversations:
1. The patient journey is expanding into other assets. As the patient journey shifted from on-campus to off-campus, the industry is now seeing an expansion to specialized or non-traditional healthcare. We used to think of MOB as the “alternative”; but with consistently strong returns and limited COVID-19 impact, it is now a strong investment vehicle. Now as other assets such as behavioral health, hospice care, recovery care and other facilities continue to grow, the industry sees a continued diversification of healthcare realty. Asset managers and leasing managers are seeing benefits in creating continuity for their tenants across these assets.
2. Patient experience continues to expand beyond the clinic walls. We heard through the conference that medical practices are seeing their patient satisfaction scores linked to the entire patient journey from the parking lot and back. The implication is that all managers need to think about the patient experience through all aspects of their journey. It’s key to intentionally design the patient experience as a competitive advantage in pursuing high-value tenants. The entire journey matters more than ever.
3. Supply chain is creating disruption in care. Not surprisingly, we heard dozens of stories of construction projects, material procurement, or tradesman labor coming late or never at all. The consensus amongst attendees is that you need to plan projects with a time buffer of at least twice the normal time to account for labor and materials. With construction being a more permanent experience, you all are seeing a need to keep the patient journey stable while the rest of the facility is in chaos.
4. Care will expand from “sick care” to “well care.” Jamie Metzl took us on a journey through AI, genomics, wearables and mRNA in his keynote speech on the first day of the event. In the following days, we had many productive discussions about where healthcare is heading: that healthcare facilities should be prepared for the expansion of telehealth, for the rise of wearable devices in the facilities, and an evolution of a “hospital” to a “wellness” environment in the facility.
5. Upgrades are on the rise. Class A buildings are investing to become Class AAA, while Class B are putting in long needed investments. Many of you highlighted that long neglected buildings are not only getting a facelift, but they are also getting a tech refresh as the patient experience is overhauled. This arms race will continue into 2022 as investor dollars continue to flow to healthcare asset classes and as top practices seek premium spaces.
So, what do we do with all of this? Take the first step by exploring or expanding your partnership with TouchSource. We are actively involved in all of the growth areas highlighted above. We can share insights learned from supporting clients on similar patient journey transformations.
Now is the time to move forward and get projects going for the upcoming year. We are anticipating a larger disruption in the supply chain as the 2021 holiday season kicks into gear and further erosion of the logistics network into early 2022. We have secured significant inventory and have an active supply chain management process in place to work with you today. Give us a call today.