The (Healthcare) Ground Beneath Our Feet… This year it is likely that over $10 billion will be invested in the digital health sector – a robust amount, no doubt, but inconsequential when compared to the amount of capital tied up in healthcare real estate assets, which is estimated to be $1.2 trillion by Jones Lang Lasalle. Of that amount, approximately $790 billion is in the hospital sector while the remaining $490 billion is in medical office assets. It is estimated that there are 48.6k facilities with 3.4 billion square feet of healthcare real estate, 42% of which are owned by REITs and another 33% held by other private investment vehicles. Much of the digital health investment is meant to make the physical healthcare infrastructure more productive: greater operating efficiencies, greater patient throughput, more relevant personalized care models with better outcomes. As the healthcare system is being pushed to be more distributed to lower cost sites of care, accelerated now by the rapid proliferation of automation and AI capabilities, the potential impact on healthcare infrastructure assets will be profound. Thoughts on what that might look like... https://lnkd.in/eTfAdUbS #digitalhealth Flare Capital Partners
Joseph F.
1w
Thank you for sharing Michael. I will study the details. The Founder of the healthcare practice at Microsoft, .Dave Chase, Health Rosetta-discovering archaeologist is making an impact in my former industry of employer-sponsored healthcare and health delivery economics. https://www.linkedin.com/pulse/hospital-ceo-behavior-devastating-consequences-middle-dave-chase?utm_source=share&utm_medium=member_ios&utm_campaign=share_via
Sammy Wahab
1w
Spot on, Michael A. Greeley! The convergence of physical and digital infrastructure is redefining healthcare...exciting insights where investments should be made!
31 years of healthcare experience . End to end RPM/RTM.
1wAny tech company without physical infrastructure is destined to fail. Even with AI, without buildings/infrastructure is unimaginable. Check healthcare where virtual appears not as effective as they think compared to in person, tech company like Amazon and Tesla telling their employees to return to work, not virtual, and building infrastructure.