As we all know, any prescription from a healthcare provider comes with directions and dosage amount. Let’s swallow some bitter pills:
- 40 percent of a hospital’s balance sheet accounts for real estate
- Only 1:3 healthcare systems thoroughly evaluate the impact real estate has on profitability
- There are 1.68 million hospital beds in the U.S., a number that’s steadily shrinking
“Without using a data-driven approach to real estate, healthcare systems are leaving millions of dollars on the table that could be used to elevate patient experience and quality of care,” says JLL Senior Managing Director Greg Gerber, Healthcare Practice Group lead.
Data and outcomes-based decision-making have always been a hallmark of medical care itself, which is a constant cost benefit analysis of treatment options. This results-focused mindset has been slow to float upstream to hospital operations and real estate—it’s a monumental task and historically, no single department of a healthcare system had the capability to connect the dots.
“The dirty little secret in healthcare is that everybody’s flying blind,” Strata Decision Technology CEO Dan Michelson told Crain’s Chicago Business.
Like Strata uncovers inefficiencies in medical procedures, JLL’s Healthcare Practice Group has pioneered the revolutionary Portfolio Analytics Tool (PAT) M.D. For the first time, healthcare systems can identify the relationships among their entire patient profile, on and off-campus location performance and service lines.
It’s a fitness tracker for your C-suite
Our steps walked, hours spent sitting and stairs climbed have always been available statistics, but they fell flat until the advent of the fitness tracker. It’s about aggregating health data in one place, offering analysis and actionable intelligence. Without those strategic insights, we, and healthcare systems, can experience data paralysis.
“The reality is that hospitals are places swimming in data but have very little insight and it is difficult to turn the data into something they can take action on,” Boston Medical Center’s Yi-An Huang said in Modern Healthcare.
At its core, real estate decisions are driven by the human behavior of the stakeholders involved, from hospital executives to facilities management. With PAT M.D., we pair healthcare data with JLL research, revealing often surprising correlations between patient analytics and real estate portfolio performance. Nowhere else can hospitals see the relationships among a community’s demographics, payor mix and competitive landscape assessed concurrently, succinctly and eventually scaled portfolio-wide.
As the 5,500 hospitals in the U.S. reconsider how fit they are for the future, data will play an increasingly important role in the conversation. Viewing healthcare systems’ footprints with this new lens of efficiency and transparency will unlock the key to value creation.
For more information on how healthcare can leverage real estate, click here.