🏥 Strategic Site Selection: The Importance of Timeliness and Market Awareness in Healthcare Expansion
As ambulatory services and community outreach grow, healthcare providers are increasingly seeking convenient locations, whether in emerging greenfield communities or infill sites in urban and suburban markets. Providers are adopting a strategic approach similar to traditional retailers, prioritizing prime locations.
⏳Timeliness in Planning
A key but often overlooked aspect of strategic planning is the timeliness of implementation. Retailers typically identify target markets years in advance, allowing flexibility to adjust based on changing business and market conditions. However, many healthcare organizations rush into execution without fully considering local market dynamics or the value of patience in acquiring new sites.
📊 Market Awareness
By carefully tracking market conditions, organizations can secure prime locations at reduced costs or uncover opportunities requiring a longer timeline, such as property aggregation. For example, on behalf of a health system client, we recently facilitated the strategic acquisition of 110 acres of greenfield land, comprising 19 parcels, over 2.5 years for a future hospital campus relocation. Careful considerations in the negotiation process ensured the parcels were acquired for less than their aggregated value, providing both savings and greater flexibility in expanding services at the site.
🛠️ Recommendations Site Planning New Facilities:
- Implement multi-year planning: Forecast potential needs and continuously monitor the local market conditions. Whether planning for one or multiple locations, the principal remains the same – exercise patience and remain flexible, as the right location may emerge at any time. Being willing to “swap” locations may be financially and operationally advantageous.
- Create and Align Your Team: Engage experts early to identify the process, costs, and timeline of any potential real estate transaction. Early involvement allows them to anticipate and navigate potential roadblocks, ensuring they’re ready to execute as priorities shift.
- Control your message: When communicating long-term intentions, maintain flexibility in location priorities. The ability to adjust the order of site implementation ensures the acquisition of the best sites at the best price.
Let us help you navigate the complexities of finding the ideal site for your future development project. Leverage our team of experts, exclusively committed to healthcare, backed by decades of experience. Contact us for an informal conversation about how we can partner to meet your needs and make your life easier, reach us at mcmarketing@medcraft.com
