News Release: Ryan Rothacker, other panelists discuss new, emerging healthcare models at Revista forum

Duke Realty executive and others explored the topic ‘Tomorrow’s Healthcare Models: Dynamics in the Delivery of Care and the Implications on Healthcare Real Estate’

 

INDIANAPOLIS, Nov. 2, 2016 – Ryan Rothacker, Vice President of Healthcare Operations at Duke Realty, an Indianapolis-based commercial real estate developer, as well as other panelists, explored the benefits and challenges of new and emerging healthcare facility models such as micro hospitals, retail clinics and telehealth.
They shared their insights at the Revista 2016 Medical Real Estate Investment Forum Oct. 4-5 at the Omni Interlocken Resort & Golf Club in Broomfield, Colo.

Other panelists were Peter Kung, System Vice President, Virtual Health, SCL Health, and Vic Schmerbeck, Executive Vice President, Strategy & Business Development, Emerus; and the moderator was Steven Stubbs, Regional Director, Mergers & Acquisitions, Adventist Health.

Micro hospitals offer consumers greater access, convenience

The panelists discussed how micro hospitals are smaller than traditional hospitals – usually 30,000 to 50,000 square feet with eight to 12 inpatient beds. They are independently licensed, open 24/7, staffed with board-certified emergency room physicians, and have transfer agreements with partner hospitals.

They noted that micro hospitals cost less to develop and maintain than typical inpatient hospitals and provide a good “value equation” for patients, offering convenient, accessible locations and affordable care.

When asked how the investment and ownership of micro hospitals works, Mr. Rothacker explained, “We have partnered with companies to develop 11 micro hospitals, and as a publicly traded REIT we have self-funded many of these projects. But we have to plan and strategize wisely because the typical investment in micro hospitals is larger than it is in traditional medical office buildings. We are comfortable with our investments because we believe this is the future model of care.”

The panelists discussed how micro hospitals typically serve as small hospitals/healthplexes with emergency treatment rooms and primary care, as well as physical therapy, pediatrics, imaging services, outpatient care and other specialties.

Mr. Rothacker noted, “Of the micro hospitals that we own, we see many different service providers lease space on the second floor of the buildings, such as family practice, physical therapy, pediatric services and other specialties. The sponsoring hospitals want to be in these locations and expand their services. That’s one of the reasons we’re comfortable with our investment.”

When asked about lessons learned in developing micro hospitals, Mr. Rothacker said, “I think the biggest lesson learned is that you want micro hospitals to be in the absolutely right location and highly visible to all users and visitors. Most health systems carefully analyze the best sites and consult with Duke Realty on the development feasibility. Because these buildings are in highly desirable locations, we can convert the hospital space to outpatient MOB space if the micro hospital department closes. However, early indications have shown the micro hospital space to be very successful, and we believe this is where healthcare delivery is heading in the future.”

Retail clinics growing across the country

The panelists discussed how retail clinics are being developed across the country and that they expect even more traditional and nontraditional organizations to develop such facilities, from Google to Walmart. They noted that while this increases convenience and accessibility for consumers, it also could fragment the healthcare system and confuse consumers. They noted that it’s important to educate consumers about different healthcare models, including costs, the types of services offered, and the level and quality of care.

Telehealth complementing traditional models

The panelists discussed how virtual healthcare, including telemedicine and digital healthcare, is beginning to transform the industry and show how hospitals and health systems can deliver quality care regardless of location. They noted, however, that virtual healthcare should be used to complement other strategies, including community-based and home care, acute care and post-acute care. They noted that even with virtual healthcare, consumers still need personal contact with their primary care providers as well as discharge follow up and medication management, especially for chronic care patients.

Mr. Rothacker noted, “We’re not seeing telehealth replace exam rooms yet. In fact the footprint might grow larger because physicians need a telehealth conference room in their space where they see patients in person and then can do consultations over the phone or via skype. This really supplements the continuum of care in metropolitan areas and could become an increasingly important model of care in rural areas.”

The annual Revista Medical Real Estate Investment Forum gives healthcare real estate professionals the opportunity to learn and share strategies with top experts on using data to improve their businesses. Revista, which is headquartered in Washington, D.C., provides healthcare property data and industry information, reports and networking events. Duke Realty is a Revista partner, and Keith Konkoli, Duke Realty’s Executive Vice President, Healthcare, serves on Revista’s advisory board. For more information, please visit http://revistamed.com.

About Duke Realty

Duke Realty is a national commercial real estate company specializing in the ownership, management and development of medical office properties, complemented by a large portfolio of industrial assets. Duke Realty (NYSE:DRE) owns, maintains an interest in or has under development 138 million square feet of space in more than 21 top-tier markets nationwide. The healthcare segment of Duke Realty’s portfolio totals more than 6.6 million square feet, and includes properties ranging from medical office buildings to rehabilitation facilities and from ambulatory care centers with diagnostics, oncology and surgery services to one of the nation’s largest cancer centers. Duke Realty also has on-staff a team of healthcare professionals who are well-versed in the unique demands of medical providers and have proven experience in providing hospitals and physician groups comprehensive planning, development, ownership and facility management services. More information about Duke Realty’s healthcare real estate capabilities is available at www.dukerealty.com/healthcare. Duke Realty also can be followed on Twitter, LinkedIn, Facebook and YouTube.