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Transforming Healthcare Real Estate: Insights From The SoCal Summit –



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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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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