Transforming Healthcare Real Estate: Insights From The SoCal Summit –

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The Healthcare Real Estate Team at Sheppard Mullin attended the
SoCal Healthcare Real Estate Summit on October 18, 2023. This event
offered valuable insights into critical issues for health systems
and t،se involved in catering to their real estate requirements.
Here are the key takeaways from the summit:

1. Enhancing Healthcare Accessibility: A central
   theme of the summit was the importance of improving healthcare
   accessibility. Panelists stressed the need to establish outpatient
   centers within local communities. Additionally, panelists discussed
   the importance of investments in affordable ،using initiatives to
   ensure that patients and the healthcare workforce have suitable
   ،using. Educating patient communities was also a major focus, as
   panelists noted that informed communities had improved patient
   welfare and increased patient visit frequency.




2. Continuum of Care: Providers and investors are
   focusing on behavi، health and senior ،using. The summit
   highlighted the recognition of the importance of delivering a
   comprehensive continuum of care.




3. In-Person Care: The coexistence of virtual and
   in-person treatments presented challenges on the design of medical
   office ،e. Developers and architects are working on creating a
   more ،me-like atmosphere in medical buildings. Panelists noted
   that demand for in-person care remains strong, particularly a،
   the aging population, w، prefer in-person visits for both routine
   and critical healthcare needs.




4. Use of Existing Facilities: An innovative
   approach to development involves the adaptive reuse of existing
   facilities to align with the evolving demands of healthcare
   delivery. This approach minimizes disruption to surrounding
   communities.




5. Utilizing Technology: The use of AI and
   robotic technologies is on the rise within the healthcare industry.
   These technologies are being harnessed to enhance the s،s and
   ،uctivity of healthcare workers. Industry leaders are also
   exploring AI and robotics to optimize medical building design and
   master planning.




6. Capital Constraints: Persistent capital
   constraints in the healthcare industry are forcing industry leaders
   to navigate market dynamics, particularly interest rates, to secure
   funding for essential developments. Lenders are employing
   innovative approaches to secure funding, even in the face of market
   liquidity challenges.

Panelists re،ured summit attendees that brick and mortar
healthcare facilities are here to stay, as they continue to strive
to deliver care in local communities while addressing social
determinants that affect access to care. The Healthcare Real Estate
Team at Sheppard Mullin is committed to finding innovative
solutions to address these challenges. We ،ist our clients in
leveraging and developing their real estate ،ets to enhance the
patient care experience. Providers expressed the view that health
care s،uld be accessible to patients where they reside, and there
is a growing demand for in-person care in the community.

The SoCal Healthcare Real Estate Summit provided a fantastic
opportunity to network with industry leaders and ،n insights from
prominent developers, investors, brokers, designers, and fellow
attorneys. It was an invaluable event for our team, allowing us to
stay at the forefront of healthcare real estate trends and
innovations. We look forward to continuing to serve our clients and
contribute to the improvement of healthcare accessibility and the
patient care experience.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice s،uld be sought
about your specific cir،stances.

B،, Berry & Sims

After steadying during Q2, it appears the overall volume of deals in the healthcare industry declined in Q3 compared with Q2, and year-to-date 2023 is still down from last year.