Hospitals can cut costs by reconfiguring their properties, according to a new report.
Many health systems own objects where their hospitals, clinics and administrative offices are located, but few are analyzing the data to determine how best to use it, property management experts from JLL conclude in a report released Monday.
Consolidation of less used objectsConsolidating rental negotiations with landlords and grouping ancillary services can lower costs of purchased services, limit energy costs, preserve equipment, and improve patient and employee satisfaction, according to the report. Such strategies can reduce the costs of health systems by 12-18%, JLL projects.
“We don’t see a ‘systemic’ approach in many areas of healthcare,” said Richard Taylor, president of Medical Solutions at JLL. Part of the problem, he said, is the lack of up-to-date quality data. This despite the fact that real estate is the third largest asset in the balance sheets of health systems, he said.
Health systems active acquisition or merger with other systems and groups of doctors that may be difficult to integrate into their operations. While labor and supply chain are usually top priorities, collecting data related to capacity utilization, energy use, population growth and maintenance schedules can guide the process, JLL said.
For example, a 17% increase in preventive maintenance orders could reduce response requests by 25%, extending equipment life, a property management company found. Grouping ancillary services in specific markets and improving facility design can improve patient and employee satisfaction rates, according to the report, indicating that providers and systems are rated in the 1980s versus the mid-1970s average. … …
“Integration should happen after mergers and acquisitions, but in many cases it doesn’t,” said Jay Johnson, national director of healthcare markets at JLL. As an example, Johnson cited a case where the health care system had four pediatricians in four different offices within the same office. half a mile each.
“Someone looked at the lease agreements and did nothing, because their validity period has not yet expired. But they could lower their ancillary services costs, consolidate medical equipment, cut administrative costs and improve brand presence, ”Johnson said. …
Poor planning, inadequate management support, and a lack of institutional capacity or expertise often prevent comprehensive real estate strategies… But healthcare executives will be forced to look beyond labor and supply chain costs as they navigate the post-pandemic environment, the message says.
“We’ve seen healthcare systems reduce labor costs and work in skeletal teams. But then they have to hire asset management firms, which is costly and can reduce quality, ”Taylor said. “They need to train and grow their workforce and find more creative ways to save money.”