I recently had the pleasure of speaking amongst top industry experts at the second annual Columbus Commercial Real Estate Summit hosted by the Midwest Real Estate News. The day’s discussions centered around the current state of the apartment industry, the importance of ROI (retail, office and industrial), and healthcare trends.
We heard from some of our top peers during the highly anticipated panel discussion, this year titled, “The Importance of ROI (Retail, Office, Industrial) Healthcare & Investment.” We also tuned into an open forum discussion regarding the current state of the industry overall. The Columbus CRE Summit is one day that we can put aside our brand affiliation or titles, and work together to establish a strong, growing market for the future.
Did you miss this year’s event? No problem! Check out some of the top industry trends discussed below, and take note, as the healthcare industry is undergoing quite a shift.
Columbus Healthcare CRE and Beyond: Top 3 Trends
1. Healthcare providers want to be in the community.
It’s no secret that healthcare costs are skyrocketing, leaving consumers with higher deductibles and payments—making them consumers as well as patients. And it’s not just consumers who are realizing these unsustainable prices. Employers have felt the pressures of increasing costs for many years, while healthcare providers are facing increasing pressures on their reimbursements. Collectively these forces are leading to the creation of a new model- population health care, and shifting from high-volume to high-value care.
Payment models are shifting away from fee for service, and to models that give providers incentives to keep people healthy (rather than doing more procedures). Health and wellness facilities integrate community fitness and healthcare. OhioHealth’s McConnell center, Ohio State’s partnership with Nationwide Children’s in the Center for Healthy New Albany and Mount Carmel’s Lewis Center facility are all examples with more to come. New emergency rooms closer to patients’ front doors and increased urgent care access are additional examples of bringing healthcare into the community.
2. Columbus submarkets are booming.
In fact, Columbus is now the 15th fastest growing city in the U.S. We’re seeing several industries, including the manufacturing, business services and technology sectors succeed in our city. And, it’s not just in our state’s capital that these industries are thriving. Many submarkets are thriving too and providers are seeking to be in these higher growth areas.
Examples of areas that are drawing substantial healthcare investment include:
- Lewis Center- OhioHealth and Nationwide Children’s Hospital are completing a new 70,000-square-foot facility, and Mount Carmel Health completed a 130,000-square-foot health and wellness facility. Ohio State University Wexner Medical Center has been in front of the community for a number of years with their large facility by Kroger.
- Grove City- Mount Carmel is also constructing a $355 million, 210-bed hospital in Grove City, while OhioHealth has purchased land in the area with plans for expansion.
- Pickerington- OhioHealth completed a new emergency department, which provided 200 jobs and the nearby Mount Carmel Diley Ridge facility has been a successful freestanding emergency department with clinical space.
3. Job growth appears steady for the future.
All across Ohio, we’re seeing positive outlook for both job growth and business opportunities. It’s projected that total employment opportunities will grow by 8.3% over the next 10 years. And with 142.8 million employed citizens, employment is at the highest level ever recorded.
These positive numbers reign consistent with job growth in central Ohio, as Columbus will add nearly 22,000 more jobs this year—with the biggest segment in the healthcare industry at 6,100 jobs. And according to the BLS, the healthcare and social assistance sector will add 3.8 million jobs nationally between 2014 and 2024.
Overall, we’re bracing ourselves for steady economic growth and job opportunities in the years to come.
Paul is a Senior Vice President focused on helping leaders within hospitals and independent physician practices develop and implement strategies to achieve positive outcomes for their real estate. View Paul’s full bio to read up on his experience, or connect with him on LinkedIn.