The healthcare industry is constantly evolving, both in the type of patient care provided and the locations where it takes place. Beyond the dual imperatives of quality assurance and profitability, healthcare systems must contend with regulatory pressures, accelerated project timelines, and other real estate-related challenges. On Thursday, 10th September, Commercial Observer brought together capital planning managers, legal experts, construction executives, and project leads for its National Healthcare Forum. The event was held in the Proshansky Auditorium at the City University of New York Graduate Center.
Experts discussed how the next generation of healthcare infrastructure can be shaped through strategies such as reallocating funding and best practices for revitalising older facilities. The event began with a conversation between Vincent Grippo, Senior Vice President of Real Estate and Facilities Services at Northwell Health, and Mitch Green, Senior Vice President at AECOM Tishman. Grippo shared his experiences from a 25-year career in customer-focused organisations and mentioned that he has been cancer-free for seven years – a condition caused by exposure to toxic air following the 9/11 terror attacks.
Grippo and Green focused on the best strategies and challenges in funding and improving the ageing infrastructure investments within hospital systems. Grippo noted that Northwell, like other healthcare systems, had not moved quickly enough in maintaining its investments. He explained that many systems were on the verge of failure, with inadequate backup power and cooling, leading to operational difficulties. Grippo emphasised that solving these issues is often complicated by facility size constraints and limited capital funds. He stated that Northwell had created an entirely new process to accelerate infrastructure investments as maintenance costs.
To convince operators of this strategy, Northwell had to demonstrate the risks of infrastructural deficiencies. Grippo reported that annual investments were between $40 million and $60 million when he arrived. Last year, Northwell reached $170 million in infrastructure investments, which was the result of a long process and the ability to deploy funds effectively. One area where Northwell has invested heavily is the over $1 billion redevelopment of Lenox Hill Hospital on Manhattan's Upper East Side. When asked about the project's progress, Grippo simply replied: "We are still working on it."
The discussion on redeveloping ageing infrastructure continued in the day's second panel, moderated by Andrew Weinberg, Director of Business Development for LF Driscoll Healthcare. Participants discussed the shift from reactive building management – a crisis-based approach to repairs – to proactive strategic master planning focused on expanding outpatient services, infrastructure resilience, and capital prioritisation.
Speakers highlighted a significant shift in the provision of outpatient services, particularly regarding location and user-friendliness. Many patients desire services close to home, which impacts real estate and capital decisions. David Kontra, Assistant Vice President of Real Estate at the Children's Hospital of Philadelphia, emphasised the importance of involving the right people in every step of infrastructure requirements, especially property management providers. He added that the biggest concern related to infrastructure, particularly outside the main hospital, is downtime, as appointment cancellations or family relocations pose the greatest challenges.
