In the dynamic, competitive healthcare landscape today, healthcare providers are constantly challenged to operate more efficiently. The “balancing act” between continuous growth, high-quality care, cost containment, and streamlining operations is a daunting task. In the midst of these challenges, many health systems, physician practices, and other providers overlook the significant potential for strategic and financial opportunities that lie within their real estate portfolios.
Real estate continues to be, and will always be, a critical component in the delivery of healthcare. With most healthcare providers owning or leasing hundreds of thousands, if not millions, of square feet of real estate, it comes as no surprise that real estate and facilities typically equate to one of the largest assets on the balance sheet and one of the largest expenses on the income statement. Transitioning from the tactical, day-to-day operational approach to real estate property management, to a more holistic approach rooted in organizational strategy can empower healthcare leaders to utilize a more strategic, business-minded approach to leverage real estate to achieve broader strategic objectives.
While traditional healthcare property management functions like maintenance and work orders, vendor coordination, and building rules and regulations, are certainly imperative to the successful management of a healthcare facility, they are often tactically focused without consideration of bigger picture strategic and operational considerations across the overall portfolio of properties. Expanding to an all-encompassing portfolio management approach to assess strengths, weaknesses, opportunities, and threats offers a competitive advantage in a versatile environment to those who capitalize on critical operational and strategic opportunities related to real estate.
There are a number of key elements in effective portfolio management including strategic alignment, portfolio tracking and reporting, relationship management, enterprise facility management, and regulatory compliance. To learn more, download our white paper, “Healthcare Real Estate Portfolio Management: Shifting the Approach to Healthcare Real Estate Management.”
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