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Ambulatory Care Is Rewriting the Healthcare Real Estate Map

Friday, June 12, 2026 16:01

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The Hospital Is No Longer the Center of Healthcare Real Estate

Ambulatory care volume is projected to grow 8.2% between 2024 and 2029. Hospital inpatient volume is declining at 1%. Those two numbers tell you everything you need to know about where healthcare real estate demand is heading.

Health systems understand this. Ninety percent of health system strategists are prioritizing expanded ambulatory access in 2026. The problem is that most of them are still designing their ambulatory real estate strategies around the wrong question. Instead of asking where patients want to receive care, they’re asking how ambulatory facilities can feed more patients into their hospitals.

Projected growth for Ambulatory Healthcare growth

The Site-of-Care Shift Is Already Happening

Care is moving out of hospital campuses regardless of whether health systems lead that migration or react to it. In some markets, 85% of MRIs now take place in freestanding centers. An estimated $50 billion in annual procedural revenue could shift out of hospital settings. Specialists who once practiced exclusively in hospital-based outpatient departments are increasingly delivering care in ambulatory surgery centers, office-based labs, and freestanding imaging facilities.

For real estate, this translates directly into demand. ASCs need purpose-built surgical suites with specific mechanical and ventilation requirements. Freestanding imaging centers require shell space capable of housing MRI shielding and power infrastructure. Infusion centers need clinical environments that support multi-hour patient stays. These are not generic medical office buildings. They require landlords and developers who understand clinical programming and health systems that know how to plan for the right facilities before competitors occupy the best locations.

The geography matters as much as the product type. NorthBay Health’s ambulatory strategy set a concrete access standard: primary care within 15 minutes of every patient they serve, specialty care within 30 minutes. That kind of precision planning drives specific site selection criteria that bear no resemblance to how health systems traditionally evaluated hospital campuses.

The Portfolio Logic Behind Ambulatory Expansion

Not all ambulatory real estate plays the same role. High-volume, high-margin services like specialty surgery, interventional cardiology, and imaging anchor the financial case for ambulatory networks. These “margin driver” facilities generate 80-95% of the positive margin pool within a well-structured ambulatory network despite representing only 20-30% of total network volume.

Primary care clinics, urgent care centers, and specialty access points serve a different function: they create the patient relationships that drive downstream referrals to those high-margin facilities. These sites operate near breakeven or slightly negative, but their strategic value is in controlling patient flow and market access.

Behavioral health, chronic disease management programs, and specialty coordination clinics operate at a loss by design. They reduce avoidable admissions and support value-based care contracts.

Health systems that understand this portfolio structure make very different real estate decisions than those that don’t. They prioritize freestanding ASC and imaging locations in markets with a strong commercial payer mix. They build primary care clinics at population density intersections, not adjacent to their hospitals. They lease urgent care space in high-traffic retail corridors rather than constructing freestanding buildings they can’t repurpose.

Getting this wrong is expensive. Health systems that expand ambulatory footprint without a clear portfolio strategy tend to overinvest in primary care (negative margin) and underinvest in the high-margin procedural sites that make the whole network financially viable.

Where the Real Estate Opportunities Are

Several site types are seeing sustained demand and warrant attention from healthcare real estate advisors:

Ambulatory Surgery Centers. ASC development activity is accelerating as procedures continue migrating out of hospital outpatient departments. Joint venture structures between health systems and independent physician groups are becoming standard, as health systems recognize they need physician partners to access established patient panels and community relationships. AdventHealth partnered with 12 independent cardiologists specifically to expand into new cardiovascular ASC markets faster than internal development would have allowed. Developers who can structure facilities that accommodate joint venture ownership complexity have a real advantage.

Freestanding Imaging. Demand for freestanding imaging is outpacing hospital-based imaging capacity in most major markets. These facilities command premium rents from health system tenants because the capital investment in shielding, power, and specialized mechanical systems creates significant relocation friction. Once a health system commits to a freestanding imaging site, it stays.

Hybrid Urgent Care / Primary Care Facilities. The traditional urgent care box is giving way to more complex hybrid formats that co-locate urgent care, primary care, and in some cases specialty care with timeshare space. University of Louisville Physicians generates 175 specialist referrals per month from a single Urgent Care Plus facility that brings urgent care, primary care, and on-call specialists into one location. These buildings require more sophisticated space planning than standard urgent care retail buildouts, but the operational economics are significantly stronger.

Specialty Hubs. Health systems are consolidating specialty access into multidisciplinary hubs that co-locate imaging, lab, pharmacy, and multiple specialty practices in a single facility. This reduces the real estate footprint relative to separate sites while improving patient experience and referral integrity. NorthBay’s strategy calls for specialty hubs with advanced imaging, labs, and pharmacies explicitly because co-location improves the economics of services that individually struggle to carry full occupancy costs.

What Health Systems Are Getting Wrong

The most persistent mistake is treating ambulatory real estate as an afterthought to clinical strategy rather than a component of it. Health systems frequently identify a clinical service they want to offer in a market, then go looking for space under time pressure, making lease decisions based on what’s available rather than what’s optimal.

The secondary mistake is defaulting to hospital outpatient department space when freestanding sites would better serve the clinical and financial objectives. Hospital-based outpatient departments carry the operational overhead of the hospital campus and face site-of-care reimbursement changes that make them increasingly unattractive relative to freestanding alternatives. Health systems that reflexively locate ambulatory services in hospital-adjacent space are protecting inpatient margins in the short term while ceding freestanding market positions to competitors.

Both mistakes have direct real estate consequences. Rushed site selection produces poorly located facilities that underperform. Hospital-centric location bias leaves prime freestanding sites available for competitors, physician group ventures, or private equity-backed providers to occupy.

The Real Estate Advisor’s Role

Health systems are navigating ambulatory strategy under real financial and organizational pressure. The CFO is watching existing hospital margins. Clinicians are attached to specific sites and resistant to practice model changes. The strategic planning team is trying to build a coherent network while making tradeoffs between capital investment in inpatient infrastructure and ambulatory expansion.

For occupier advisors representing health systems, the opportunity is significant. Health systems need advisors who can translate clinical programming requirements into real estate criteria, model portfolio-level location strategy rather than individual site decisions, and help clinical and financial leadership align on what the ambulatory footprint is actually supposed to accomplish.

The health systems that figure out ambulatory network design early will establish market positions in the highest-value clinical locations before those positions are taken. The ones that wait will spend more capital to achieve worse outcomes in secondary sites.

That urgency creates real advisory opportunity, but only for advisors who understand the clinical and financial logic behind the real estate decisions.

The post Ambulatory Care Is Rewriting the Healthcare Real Estate Map appeared first on Coy Davidson – The Tenant Advisor.

Source: https://coydavidson.com/ambulatory-care-is-rewriting-the-healthcare-real-estate-map/

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