Patients expect and prefer the convenience and lower cost of ambulatory care. That means developing medical outpatient buildings has become a priority for health systems to preserve and grow market share.
While growing an ambulatory footprint is necessary for most systems, health systems and healthcare administrators need the right partners to formulate ambulatory network plans and to execute on the implementation of these plans to mitigate the inherent risks associated with growth.
Risk: Overdesign & Higher Costs
Many health systems are well-versed in the planning, financing, and development of hospitals but do not have the in-house expertise, experience, nor adequate resources to grow their ambulatory platform.
There is a cost premium associated with the design and construction of higher acuity facilities, and when transitioning to medical outpatient facilities, health systems often design to hospital and higher costs standards and are often charged a premium to what is market for these lower acuity facilities. As a result, health systems are accustomed to hospital-level development costs, and consultants and contractors are accustomed to charging health systems hospital-level costs.
Having the right development partner that is solely focused on medical outpatient facilities with extensive experience on cost metrics for various ambulatory facilities greatly reduces the risk for health system mark-ups and creates value.
In addition to the risk of overdesigning to hospital standards and overpaying for the project, health systems should consider preserving capital for operations and their higher acuity facilities. Partnering with a sophisticated healthcare developer both shifts the delivery risk from the health system and opens the opportunity to customize capital structures to align with both the short- and long-term strategies for the health system.
NexCore solution: Industry leading access to capital
The team at NexCore Group is entrenched in building ambulatory care centers. As a national leader in the development of ambulatory facilities, NexCore has industry leading access to capital. If a deal is financeable, we can finance it — and with creative options for today’s fickle market providing certainty for our clients.
Risk: Project, schedule, and pricing overruns
Even with a solid strategy and experienced partners, there is always the potential for cost overruns on any real estate development project. Labor constraints, changes in capital markets, and regulation changes are a small set of variables that could impact schedule and increase costs. Of course, it can be difficult for health systems to incur any of these surprise costs.
NexCore solution: Locked-in rental rates to absorb surprise costs
Overrun costs are not your responsibility when you work with NexCore Group. We can lock in rental rates early in the development process and can customize when this occurs to meet the specific needs of our clients. Budget with certainty when you work with NexCore.
Risk: Missing the mark on the ambulatory network and business plans
Creating and prioritizing an ambulatory network plan with the corresponding business plan for healthcare real estate development is both time-consuming and requires an experienced team. When these tasks are solely done in-house, the people tasked with creating the plans have so many other responsibilities to balance. Schedules can slip.
Board approval of a business plan is just the beginning. Next comes formulating and executing a project delivery plan to achieve the health system’s goals for the new medical outpatient building(s). Neither creating the plan nor bringing it to fruition are easy tasks.
NexCore solution: Bringing decades of perspective to pre-development
Our team members bring to bear 45 years of experience as well as an executive background in outpatient operations. NexCore is a one-stop shop for health systems to partner with to help create an ambulatory plan and execute the plan.
Working with NexCore provides more certainty of achieving and exceeding the plan’s goals. Why? Because we bring our industry leading experience and accumulated best practices from our work across the country to every project.
Risk: Losing focus on patient care to shoulder development
Admirably, healthcare administrators want to focus on their organization’s ultimate mission: providing excellent patient care and outcomes for the community. However, self-development inevitably means taking focus, resources, and leadership attention away from this mission. Key people get bogged down in working out construction details, design decisions, pricing negotiations, and overseeing project managers.
It’s a drain on the organization’s bandwidth. And it opens the door for risks like overbuilding or overdesigning the space, which can again inflate costs.
NexCore solution: Doing the real estate development heavy lifting for you
It’s simple. Partnering with NexCore enables health systems to focus on patient care and lets us take care of the majority of the development process.
We guide you through as much or as little as you need — from selecting the best sites, consultants, and contractors based on your location to optimizing square footage to serve the most patients in the least space. The end result is a medical outpatient building that serves your community efficiently and effectively.
Let NexCore Group carry the delivery risks of medical outpatient building development
At the end of the day, there are many risks associated with healthcare systems self-developing their own outpatient facilities. Everything from overdesign and cost overruns to loss of focus can derail projects.
By partnering with a specialized outpatient real estate developer like NexCore, healthcare organizations can mitigate those risks through their laser-focused expertise, industry leading experience, pricing/escalation controls, and strong capital relationships.When the stakes are this high, it pays to work with a partner dedicated to developing exceptional ambulatory care centers that meet your short- and long-term patient care objectives. Contact NexCore Group to discover how we can support your entire medical care center development process.