Outpatient Investing

John Commins, May 21, 2015

In a recent HealthLeaders Media Intelligence Report, healthcare leaders indicate that 64% of capital budget investment will go to ambulatory or outpatient care expansion, with just 36% dedicated to inpatient acute care expansion. HealthLeaders Media Council members discuss the outlook at their organizations.

This article first appeared in the June 2015 issue of HealthLeaders magazine.

Christian Pass
Interim CFO
John Muir Health
Walnut Creek, CA


We continue to build out our ambulatory strategy. We recently opened an outpatient care center with integrated physicians/specialists, other educational facilities, and ancillary services in the building. We're looking to expand outpatient care facilities in the Bay Area. Most of our new building capital investment is looking at the ambulatory strategy and then continuing to keep the inpatient facilities up to date with the latest equipment.

Pass
Christian Pass

Healthcare is changing, with a significant shift toward the outpatient arena and trying to do things outside the hospital that we didn't do previously. Still, we will need that emergency uptime 24-hour care in the event of disasters. We have to be mindful of the capital and make sure we are planning appropriately, including, obviously, the pressures on payments and the movement to exchanges and things like that. It's a careful little chess game we are playing right now.

Another thing facing California in 2030 is the seismic regulations, so we are keeping that on the horizon as well. As we are looking at our capital outlook, even now into 2022 or longer, we need to start planning for either new construction or retro-fitting. Right now it's not directing a lot of funding. We have to be mindful of it in the future.

John Commins

John Commins is a senior editor at HealthLeaders Media.

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