As the Accountable Care Organization (ACO) model takes shape, hospitals need to strategically define future real estate development needs. With construction costs having risen 2.5% last year, one financially beneficial solution is the design and development of prototypical facilities.
A prototype is not necessarily the repetition of the same facility multiple times, but rather reuse of the same concept including: structural spacing, engineering assumptions and overall dimensions. Defining the facility model by methodically planning profitable uses with qualified architects will produce cost effective design and construction concepts that can be repeatedly implemented.
Prototypical design will obviously vary by geography and topography. Conceptually, buildings can be sized in modular increments. Reusing the same "design" and specifications reduces architecture and engineering fees, overhead, interest carry, material lead time, and most importantly general contracting expense.
The same core elements in a different place with a different facade, providing similarly profitable medical services, increases cost savings and is ideological of the ACO model.
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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/