Page 46 - SFHN 1207 pages.qxd

HEALTHCARE REAL ESTATE, CONSTRUCTION, DESIGN & FACILITY PLANNING

Successfully Meeting Growing Community Healthcare Needs

PART ONE ly open.
peed to market is a key component to Let’s consider two projects,
success in today’s continual expan- one completed in the tradi-
Ssion of hospitals and their ambulato- tional hospital timeline, and
ry services into metropolitan suburbs. one with an expedited imple-
Other elements that usually come into mentation process.
play in developing a successful expansion Traditional Hospital
strategy include: Timeline
• Location; new service line 2. Changing dynamics of the required
• Timing; 1. Hospital enlists a consult- Timeline: 6-18 months healthcare services, either increased vol-
• Selection of property in growth areas; ant to evaluate current (depending on jurisdic- ume or changing mix since the program
• The ability to bring a focused program, business and strategize tion) was generated, will occur. Keep in mind,
design and construction to market. new market locations 4. Hospital initiates a gen- this accounts for the hospital, physicians,
While everyone may understand the within the health system. BY TOM WITTENBERG eral contractor for con- and market conditions not changing
importance of each of these factors, align- Outcome: Identifies 3-4 struction of the facility. strategic direction, and/or the ability to
ing the hospital strategy with a program potential markets to lever- Outcome: New facility recruit during the development cycle. If
supported by the local physician network age market share providing services in a new market either of those conditions occurs, the
is critical. The facility branding concept, Timeline: 6 months Timeline: 6-12 months (depending on process will be moving backward in creat-
jurisdictional timing constraints (whether 2. Hospital either hires outside broker, or facility size) ing a market presence within the intended
state health organizations and/or local uses in-house resources, to identify and timelines.
municipalities), and the overall ability to negotiate land purchase. Once selected, In Summary Next month we will discuss an expedit-
efficiently execute on a new development, hospital goes through a due diligence The traditional model would provide ed implementation process and strategies
can become daunting tasks to traditional process prior to land closing. new services in a growing community that have helped many healthcare organi-
organizations built to provide healthcare Outcome: Land position in key market within 2-3 years after initial identification. zations successfully navigate through the
services in a confined location (main hos- areas Key issues to consider during this process expansion process.
pital campus). Timeline: 6 months include:
Many hospitals ask themselves, “Why 3. Hospital uses a design consultant to 1. Market conditions (including budget Tom Wittenberg is the Vice President of
do we have to move quickly? Our patients determine external branding, mix of increases) that effect construction pricing Development in the Southeast Region for
are not going anywhere.” The answer has services, sizing of services, and juris- could easily be increasing 8-10% a year in BremnerDuke Healthcare Real Estate.
many implications, both from their com- dictional approvals. normal conditions (contrary to recent He can be reached at
petitiveness with others in the market, and Outcome: A branded health system increases of 20-50% depending on market tom.wittenberg@bremnerduke.com
the final cost when the project is eventual- design with physician buy-in to the
location). or (770) 717-3200.

Specializing in the construction & renovation of healthcare facilities

• Pre-Construction Services
Arellano Construction Co.
7051 SW 12th Street, Miami, FL 33144
• Construction Management
305.994.9901 (t) / 305.994.9903 (f)
www.arellanogc.com
• General Contracting

46 December 2007 hospitalnews.org South Florida Hospital News