realestate

Unlocking Savings in Healthcare Real Estate through Market Benchmark Analysis

Benchmarking in Healthcare: Measuring Performance Across Patient Care, Operations, Finance, and Compliance with Key Performance Indicators.

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    Benchmarking is a crucial tool in healthcare, enabling health systems to measure performance across patient care, operations, finance, and compliance. Key Performance Indicators (KPIs) bring structure and clarity to this process, allowing health systems to track progress and compare against peers or national standards. Operational benchmarks like average length of stay, bed occupancy rate, and nurse-to-patient ratios highlight resource management efficiency. Compliance is monitored through indicators such as CMS Star Ratings, Joint Commission audit outcomes, and HIPAA-related incidents.

    In healthcare real estate, benchmarking provides critical insights that drive portfolio optimization, compliance, and cost control. Real estate represents a significant cost center for health systems, often targeted for reduction through consolidation or operational efficiency initiatives. Clinic efficiency analyses offer valuable insights into how effectively each site is being utilized, uncovering opportunities to increase patient throughput or identify underused blocks of time.

    Key performance indicators such as Margin per Square Foot (Margin/SF) and work Relative Value Units (wRVUs) per Provider Full-Time Equivalent (FTE) enable health systems to identify areas for operational improvement. Compliance benchmarking ensures every transaction is benchmarked not just for market alignment, but also for regulatory adherence. By evaluating a site's Margin/SF in the context of portfolio-wide benchmarks, real estate leaders can set target Margin-to-Rent ratios and strengthen lease negotiation strategies.

    Colliers' Strategic Benchmarking delivers measurable real estate outcomes by indexing comparable lease data across the market. This approach has delivered an average savings of 7.8% compared to prevailing Net Effective Rent (NER) market rates. By integrating benchmarking into your real estate strategy, your organization can unlock hidden value, reduce unnecessary spend, and strengthen compliance—all while supporting broader financial objectives.

    Colliers brings the data, discipline, and healthcare expertise to help you achieve measurable results. Let's start a conversation about how we can align your real estate portfolio with your system's strategic and financial goals.

Healthcare real estate professionals analyze market benchmarks for cost-saving strategies globally.