Feature Story: Systems are still looking to grow

Providers at Colliers conference discuss challenges, remedies and the future

By John B. Mugford

The Colliers “Provider Panel” included (from left to right): Angel Benschneider of Baylor Scott & White Health, Mick Cantu of Houston Methodist, moderator Mark Yagerlener of Medxcel Real Estate, Ron Brown of Ascension and Tiffany Goitia of Ochsner Health. (Photo courtesy of Colliers)

As health systems navigate their futures and strategize about how to grow, they face plenty of challenges.

Among them is the fact that the costs of many aspects of the business, including labor, materials and anything having to do with real estate, have risen dramatically in recent years at the same time that reimbursements and payments have failed to keep up with such expenditures.

In addition, competition in many of their stronger markets continues to increase, leaving them with no choice but to do their best to expand their brand and footprint in a timely manner.

Also, among other challenges, some health systems have learned that the long-believed notion that the need for inpatient beds would wane, which has not come true, according to at least one health system real estate professional.

Discussing these challenges, as well as real estate strategies and the outlook for the future, were the main topics during a session titled “Provider Panel: Transforming Healthcare – How Health Systems Are Adjusting Real Estate Strategies” at Colliers International’s 2025 National Healthcare Conference at the Hotel Monteleone in New Orleans last week.

Hosting the event that was held Sept. 11-12 was Shawn Janus, national director of Healthcare Services for Colliers International Group Inc. (Nasdaq: CIGI).

As the provider panel kicked off, one of the panelists, Angel Benschneider, system VP with Dallas-based Baylor Scott & White Health, which operates 52 hospitals and has a real estate portfolio of about 27.5 million square feet, provided a twist on the recent belief that, as the country came out of the COVID-19 pandemic, there would be less demand for inpatient care.

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