covid-19'slasting effects on future healthcare property supply
In the wake of the COVID-19 pandemic, the UK's healthcare real estate sector is undergoing significant changes to meet the evolving needs of the population. A 2022 poll by Policy Exchange revealed that 81% of respondents prioritized new, modern healthcare buildings as a government infrastructure need.
The pandemic has emphasized the importance of providing adequate facilities to support and motivate healthcare staff, as the undersupply of healthcare workers is feared to reach 18 million globally by 2030. To address this, institutional investment trends reflect a growing pipeline of facilities and capital committed to healthcare real estate, indicating sustained long-term growth and transformation in this sector.
One of the key changes in healthcare facility design post-Covid is the incorporation of improvements to air filtration and air exchanges, the layout of corridors to support visitor flow and social distancing, and the use of outside spaces. For instance, Carter Jonas achieved planning consent for a brand new Community Diagnostic Centre in June 2023.
Moreover, the design of healthcare facilities now includes more sophisticated approaches to lighting, heating, and cooling, with variable (often voice-activated) controls and the use of sensors to allow buildings to function more efficiently. The expedited adoption of emerging technology in the health sector has led to a significant increase in phone or video conference GP consultations, with 50-70% of consultations now conducted this way.
The demand for 'touch-free' services in healthcare facilities has resulted in the incorporation of digital patient management tools for check-ins, smoother triage systems, and real-time locating systems for better patient management. The use of 3D visualisation in the design of new health facilities has allowed healthcare trusts to test out new facilities virtually as part of the design process.
The next pandemic may not be airborne, as Covid was, and flexibility is all-important in facility design to accommodate different types of pandemics. Technology and processes are changing so fast that adaptability has become crucial in decisions related to the location of heavy machinery such as CAT and MRI scanners.
The growing demand for remote patient monitoring of chronic conditions has impacted the design of healthcare facilities, with 88% of US healthcare providers investing in this technology. The 15-minute neighbourhood concept, which promotes neighbourliness, local businesses, and sustainable travel, has become central to the masterplanning of new and existing communities.
The continued growth in ambulatory care will be key to providing faster surge capacity, with fewer disruptions, than temporary hospitals. WSP's report "Hospitals After COVID-19: How Do We Design For An Uncertain Future?" states that work is underway to review building regulations and standards for hospitals worldwide. China plans to add more than 28,000 new hospital beds, while India anticipates capacity for a further 24,000.
The Covid pandemic has highlighted the need for flexible, resilient healthcare spaces, and this emphasis is reflected in the strategic shift from purely acute hospital care towards more distributed care models such as primary, community, and specialized rehabilitation facilities. This contributes to a longer-term impact of the pandemic on the future provision of healthcare real estate in the UK, characterized by increased investment and demand for healthcare facilities adapted to evolving care models, especially to support long-term and community-based care needs stemming from post-COVID conditions and broader healthcare shifts.
References:
- Policy Exchange (2022)
- UCL's Bartlett Real Estate Institute (2020)
- Lancet Countdown on health and climate change (pre-Covid pandemic)
- The growing demand for remote patient monitoring of chronic conditions (US healthcare providers data)
- The UK's healthcare real estate sector, in response to evolving needs, is seeing significant investments, as demonstrated by an increasing pipeline of facilities and capital committed to healthcare real estate.
- To address the potential undersupply of healthcare workers globally, new and modern healthcare buildings are being prioritized as a government infrastructure need, according to a 2022 poll by Policy Exchange.
- As a result of the pandemic, healthcare facilities are incorporating technology such as digital patient management tools, 3D visualization, and remote patient monitoring systems for chronic conditions, with 88% of US healthcare providers investing in this technology.
- The emphasis on flexible, resilient healthcare spaces is leading to a strategic shift towards more distributed care models, such as primary, community, and specialized rehabilitation facilities, particularly to support long-term and community-based care needs stemming from post-COVID conditions and broader healthcare shifts.
