Written By: Mike Johnston
This year and the previous one have shown us just how irreplaceable healthcare is for the entire world. With a rising need for medical professionals, an aging population, and the pandemic changing the healthcare landscape, real estate investors in the healthcare industry are fully aware that their decisions will redefine how this field will advance. Naturally, more investors are hurrying to take a slice of this ever-growing market– but when it’s time to purchase or invest in one of your medical facilities, some decisions matter more than the rest.
Understanding the market shifts that are already altering how healthcare will evolve and recognizing investment opportunities is merely part of the process. Now, let’s focus on how you can make the most of your healthcare real estate, what kind of investments make the most sense in this climate, and what you can do to maximize the potential of your medical real estate portfolio.
Finding an investment niche that suits you
Healthcare as a whole might be booming, but you know that it’s better to narrow down your expertise– especially if you cannot possibly invest in a massive building complex to provide all possible, hospital-grade services to your local patients. Instead, aim for something popular and appropriate for your target demographic.
From aesthetic surgery, home and palliative care, dental health, all the way to pediatrics and rehabilitation, you can define the purpose of your healthcare facility by researching your local audience and the needs of the local people.
Do your homework on the healthcare property
Ask questions! Is there any missing paperwork? Have you checked the previous owners and their due diligence? Are there any tax issues lingering over the property? Is there anything you should know about the historical relevance of the building? What about the potential for upgrades in terms of structural integrity and resilience?
These and many other questions need to be asked before you take the leap. Conduct a thorough analysis with your legal team and a professional with previous experience evaluating healthcare real estate. You need to have a detailed overview of the building’s current value and potential issues before investing.
Focus on sustainable solutions
Sustainability in business helps address your profitability and the need to safeguard the planet. By choosing highly functional amenities and solutions that preserve energy and reduce waste, you’ll become a leading healthcare figure in your community, and you’ll cut your operational costs to a great extent.
You can achieve energy savings by introducing LED-based lighting applications used in cleanrooms within your medical facility, which both protect the environment and reduce your electricity bill significantly. LED lights in healthcare have been used for a long time, complement this solution with other equally sustainable choices, such as solar energy, recycling facilities, etc.
Leverage the right location and local trends in healthcare investment
Just like with every single investment choice— the location of your healthcare facility will make or break your potential for success. Whether you decide to invest in a comprehensive clinic with various physicians or focus on a niche such as physical therapy— you should make sure that the building itself is in a prime location, a safe neighborhood, and well-connected with the rest of the city. These details will ensure that people can reach it with ease.
Also, consider the kind of population residing in your location of choice. By doing this, you should have the ability to tailor-make a strategy that will allow you to position and grow your healthcare business in the right light. Marketing your healthcare facility, showcasing your staff, offering relevant services, ensuring safety, and the like– are all parts of a strong positioning approach in every single market.
Prepare for operational costs in healthcare
Even though the most cumbersome part of the investment is the actual purchase of the building (or leasing it, depending on which route you choose), as well as equipping it with the right technology, you also need to keep in mind your medical facility’s operational costs. Consider partnering with other interested investors or obtaining a loan to sustain your healthcare endeavor for the first year or two.
Be mindful that hiring the most well-educated personnel and medical professionals will be the biggest challenge since you’ll need to ensure competitive salaries and benefits for them all. You’ll also need to consider the ongoing equipment maintenance and upgrades, everyday medical supplies, and partnering with the right companies that will help you build up your reputation– such as marketing and branding professionals.
Owning or running a medical facility as one of your major investments is a noble way to invest and do good in one go. However, to effectively run your healthcare institution, you first need to secure its future by ensuring your foundation is strong and that you’ve made all the right decisions from day one. Carefully follow this list to tick all the boxes, consult your lawyers, and prepare for a challenge that will be as rewarding as it will be difficult. The bottom line is: with the right strategy and optimal funds– your facility can provide a safer future for your community– with you at the helm.
About the author: Mike Johnston is an avid blogging enthusiast and experienced freelance writer and editor. He’s a regular contributor to numerous blogs and online publications where he writes about business, real estate, construction, and home improvement.
