Development News

Explore Our Recent Development Projects

Optimizing Healthcare Joint Ventures through Strategic Developer Collaboration
by Sean Miller, Senior Vice President, Development

In recent years, a notable trend has emerged in the healthcare industry: health systems are increasingly partnering with specialty healthcare operators, including but not limited to ambulatory surgery, medical oncology, imaging, inpatient rehabilitation, behavioral health, freestanding emergency departments and urgent care centers.

Developers with extensive healthcare facility experience and a strong understanding of joint venture structures can play a crucial role in these partnerships. By aligning with the operational and financial goals of the joint venture, developers offer strategic advantages that can set apart a joint venture in an increasingly competitive environment.

One of the most significant benefits of forming a programmatic, long-term relationship with a developer is the substantial reduction in project risk. Developers manage the complexities of project execution, including holding contracts with architects, general contractors, lenders, and other project team members, thereby minimizing the joint venture’s exposure to risk. This approach allows the health system and specialty operator to focus on their core mission – delivering high quality patient care – while the developer manages the intricate details of bringing projects to life.

“PARTNERING WITH A DEVELOPER PROVIDES ACCESS TO A WEALTH OF KNOWLEDGE THAT HAS BEEN SUCCESSFULLY IMPLEMENTED NATIONWIDE.”

Additionally, partnering with a developer provides access to a wealth of knowledge that has been successfully implemented nationwide. With expertise in both design and construction, developers can create a more efficient space layout and optimized workflow based on best practices. Unlike a “one-and-done” approach, an integrated healthcare real estate firm considers the entire lifecycle of the building, ensuring that longevity, constructability, and long-term value are embedded into the facility’s design and materials from the outset.

Finally, developers offer access to capital, empowering joint ventures to pursue strategic expansion initiatives without overextending their financial resources. With customized financial solutions ranging from fee-for-service to structured finance options, developers help position the joint venture’s real estate portfolio as a catalyst for achieving long-term, system-wide objectives.

This strategic collaboration with a healthcare real estate developer strengthens the joint venture’s competitive edge while achieving sustainable growth, operational excellence, and improved patient outcomes for years to come.