Healthcare
Capital Markets
July 2021
The performance impact of real estate on systemness (and vice versa!)
The healthcare industry post-pandemic will be challenged by increased costs, slimmer margins and greater demand for care. Taking a systemness approach to managing real estate and facilities is a tangible way to mitigate these risks.

JLL’s recent 2021 Healthcare Real Estate Outlook provides insights into the characteristics and performance benefits of “systemness” to advance the goals of integrated healthcare providers and achieve patient care goals.

Systemness in healthcare means coordinating and leveraging service lines, facilities, regional divisions, and stakeholder groups to operate in a way that is optimal for the health system organization as a whole—with the overall objective to provide better care to more people at lower costs.
Patient volume will grow another 20 percent by 2030, but care will increasingly be delivered in outpatient centers—underscoring how important it is for healthcare systems to take a strategic real estate approach to meet these demands. JLL outlines three ways that real estate can influence and benefit systemness strategies in healthcare:

1. Location strategies can drive greater patient access: Strategic location selection that takes into account demographic patterns, demand for care by specialty, external clinical competition, real estate market conditions, and other important geographic factors can inform strategies and further systemness goals.

2. Enhance facilities operations to advance outcomes: A systemness approach to real estate operations can be a lever to reduce overall costs at scale, prevent a pattern of deferred maintenance and support asset value in the long run, along with enhanced patient experience and brand image of the system itself.

3. Leverage healthcare real estate asset value: Systemness strategies can drive real estate values via location commitment and credit strength of the systems themselves. Health systems can extract value from owned assets or leverage third party capital to expand or modernize care delivery or use to fund other priorities.
 
Recent activity
New Listing - Investment Sale
Granger Medical Clinic
94,834 s.f.
West Valley, UT
New Listing - Investment Sale
University of Kansas Health System Great Bend Hospital
63,978 s.f.
Great Bend, KS
New Listing - Investment Sale
Milford Regional Health Complex
38,401 s.f.
Northbridge, MA
New Listing - Investment Sale
Centennial Surgery Center  
8,763 s.f.
Las Vegas, NV
New Listing - Investment Sale
Central Illinois MOB Portfolio
321,355 s.f.
Decatur and Peoria, IL
Closed - Debt Placement
Cornerstone Healthcare Group Credit Facility
347,669 s.f.
National Locations
Closed - Debt Placement
Cottonwood Creek Behavioral
60,077 s.f.
Meridian, ID
Closed - Debt Placement
Yuma Regional Foothills MOB
56,878 s.f.
Yuma, AZ
Closed - Investment Sale
Vista Medical Plaza
54,703 s.f.
Vista, CA
Closed - Investment Sale
Hefner Pointe Medical Center
26,651 s.f.
Oklahoma City, OK
 
Closed - Investment Sale
NeuroRestorative Garland
21,083 s.f.
Garland, TX
 
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