M
aryland's healthcare system is poised for significant changes that may heighten the need for efficient space, strategic siting, and creative financing in the coming years. To address these challenges, MacKenzie Commercial Real Estate Services has established a Healthcare Services Group.

    "We're bringing together a wealth of resources to serve the healthcare community," said Scott Wimbrow, President. "Our mapping software helps with demographics and site selection, while our construction department provides value engineering and our capital markets group offers tenant-improvement financing."

    The industry faces a new economic cycle and major changes in federal policies, including a revised reimbursement model that will significantly reduce Medicare and Medicaid payments to healthcare providers. Additionally, the federal administration's funding package is expected to result in a reduction of Medicaid enrollment in Maryland.

    These financial pressures may compel healthcare providers to find ways to heighten their efficiency and right-size their real estate portfolios. "Right sizing doesn't always mean reductions," said Dennis Bodley, Vice President of the Healthcare Services Team. "It means assessing operating costs, patient volumes, local demographics, and psychographics to determine the most efficient way to organize operations."

    To achieve these efficiencies, mapping is critical, showing healthcare tenants where there's a need for their services and helping landlords understand what services are missing in their properties. Escalating construction costs have also presented a challenge, with tenant improvements now costing $150 to $300 per square foot.

    MacKenzie's Healthcare Services Group will be able to address these challenges by providing value engineering for fit-out projects and identifying sources of funding for tenant improvements.