SCOTTSDALE, AZ—Understanding the needs of healthcare systems is critical to the success of any healthcare transaction, according to sources at the recent GlobeSt. Healthcare conference in Arizona. “A lot of the major regional systems have improved since the COVID years, but it’s still a tough environment to navigate, especially when it comes to organic growth, which typically comes with higher costs,” said panelist Troy Freeman, vice president of real estate management at Benner Health.
As healthcare systems undergo shifts driven by technological advancements, demographic changes, and regulatory reforms, their impact on the built environment is profound, according to Murray Wolf, publisher and founding Editor of Healthcare Real Estate Insights. Wolf led a fireside chat with Freeman on Tuesday morning, where he explored the implications for commercial real estate professionals and operational considerations.
“We’re fortunate to have a balance sheet that allows us to stay ahead of growth opportunities. The challenge is especially acute in Arizona, where growth has been so pronounced,” Freeman said. “There are many places we’d like to expand, but prioritization is key. You can’t take on everything at once.”
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He pointed out that Banner Health uses its tools to break down the process and approach it step by step. “Planting our flag early and often is part of our strategy. We never do anything without scaling it,” he said. “Finding the right space to meet our needs is challenging.”
Freeman also explained that getting ahead of growth markets and addressing the gaps within them depends on the availability of resources. “In our capital planning process, we often find multiple competing needs. Prioritizing and building solid business cases are essential,” he said. “The reconciliation process—how we rank and prioritize—is critical.”
For growth opportunities, Freeman stressed the importance of flexibility in both new and existing assets. “We focus on how to integrate the right services into a building and mix them effectively,” he noted. “Our capital budget continues to evolve, and we’ve become more creative in using third-party capital. Credit is due to many in this room, as newcomers to the space are bringing renewed creativity, which has been a significant shift.”
Maximizing the potential of existing buildings is also important, he explained. “We walk through our spaces to ensure they’re used efficiently. Vacant space is always a concern,” Freeman said. “We’re looking at ways to increase the volume we can handle within existing real estate.”
For example, he pointed out that a space might be used for one purpose during the day and transformed into an urgent care facility at night. “We’re thinking outside the box, considering long-term needs, and adapting to the changing demands of consumers.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
