What’s a progressively growing medical facility that stands to benefit health system and hospital executives, especially in response to healthcare reform? A satellite emergency department (ED).
New hospital construction for this year revolves around lower-cost, community based facilities. As health systems are trending toward smaller, neighborhood based facilities, satellite emergency departments are popular buildings that are continuing to be revenue generators while providing convenient and quality care.
The AHA reported, from 2006-2009 the number of satellite EDs grew by 25% with hospitals operating them in at least 16 states. Likewise, of the 531 hospital executives who completed the 2012 HFM/ASHE Construction Survey, 7% indicated free standing emergency departments as future facility projects. These hospital executives plan to develop these types of facilities specifically in response to health care reform legislation.
Free standing EDs are ripe for healthcare reform for several reasons:
1. They save patients and hospital executives money. For urgent care matters patients don’t need to pay higher priced hospital bills, while hospitals may treat patients quickly and conveniently without all the overhead costs associated with a hospital.
2. They alleviate overburdened hospital emergency rooms. While emergency room visits continue to increase, and at the same time, the number of hospitals’ emergency departments decrease, satellite EDs provide a valuable resource with enhanced emergency capabilities to accommodate patients proximal to them.
3. They are a good, first point of access. As the expected influx of newly insured Americans arrive in the coming years, improving and adding outpatient clinics in neighborhood settings will help increase healthcare efficiency.
High quality health care delivery can be profitable and strategically located, and patient-centered facilities will be rewarded. Satellite EDs are a viable solution to increase revenue while providing convenient and quality care to people in rural settings as well as urban.
James Ellis, CEO, Health Care Realty Development Company, is a nationally recognized successful real estate investor and developer of medical office properties with a comprehensive knowledge of sophisticated real estate transactions, cost effective designs, and efficient property management.
Aaron Razavi is Associate Marketing Director at Health Care Realty Development.
Visit their blog at http://www.hcrealty.com/medicalrealestatedevelopment/