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COVID, Telehealth, and Their Impact on Healthcare Real Estate



Americans are reluctant to visit a doctor’s office or healthcare facility because of the COVID-19 pandemic. Instead, they’re choosing telehealth to solve their health and wellness problems.


Colliers International’s Fall 2020 Healthcare Services Report discussed the implications for healthcare real estate arising from the growth of telehealth and the future of medical office buildings (MOBs).


According to Colliers, telehealth falls into three main categories:


1. Remote Patient Monitoring (RPM) involves the collection and transmission of data, often from outside clinical settings, to a provider and includes data analysis and alerts.


2. eConsults involve interactive, electronic exchanges of information between healthcare providers situated remotely. Using a virtual platform, providers can improve care management and coordination without face-to-face meetings.


3. Virtual visits are interactive, electronic exchanges of information that take place between patients and providers, thereby reducing the need for in-person appointments. Such visits typically take place over a platform such as Skype or Zoom.


During the COVID-19 pandemic, the volume of virtual visits has accelerated rapidly, according to Colliers. In fact, telehealth utilization has been growing at a rapid rate over the past decade, including an estimated 1202% increase in usage from 2012 to 2017.


This increased utilization is driven by a number of factors including: patient demand for convenience and flexibility; the need to bring treatment to rural areas; the need to treat those for whom it would be difficult to make it to a physical office.


The Advisory Board estimated that there will be one billion virtual visits in the U.S. in 2020, including both tele-triage of COVID-19 patients with mild symptoms and, with the help of RPM, appointments for non-COVID patients to receive care without risking exposure to the virus in hospital settings.


“A key question facing future telehealth provision is whether current levels of demand will be sustained once we are in a post-COVID world that has seen the development and widespread adoption of an effective vaccine,” the Colliers report pondered. “Will patients return to the doctor’s office or will treatment patterns have shifted?”

Prior to the pandemic, an estimated 11% of patients used telehealth services. This number has risen to 46% during the COVID-19 crisis.


Colliers’ report acknowledged that telehealth will have an impact on future office space requirements, but said that more evidence is needed before the firm can define the degree of change and how lasting it will be.


For example, Colliers anticipates that medical office space needs could decrease if waiting areas are reduced due to a lower volume of patients visiting a physical location. However, this may be counter-balanced by the need to provide for social distancing protocols.


Additionally, less space may be needed for administrative staff if it has been proven that these roles can function just as efficiently in a remote setting. Likewise, fewer consultation rooms may be needed, depending on the number of patients who can be treated through a virtual rather than in-person visit.


“Telehealth is set to have a continued impact on the location and provision of healthcare services,” Colliers said. “It is viewed as complimentary to, rather than a complete substitute for, in-person care. There are still a wide range of healthcare needs that require a visit to a healthcare facility.”


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