Adding to its growing presence along Westchester’s “Medical Mile,” Simone Development Companies transformed the former corporate office building into a state-of-the-art specialty care facility for Montefiore Health System. The four-story, 115,000-square-foot center at 104 Corporate Park Drive provides local families with world-class treatment that is close to home.
BRONX NY (August 2021) — Healthcare real estate developer Joseph Simone says that the declining rate of hospital stays is prompting providers to seek new revenue models involving elective surgery and outpatient services.
“For the past four decades we’ve seen a remarkable decline in average hospital stays that is reshaping the medical landscape. Many hospitals have closed while those that remained open have launched multi-million-dollar expansions to help them replace the revenue from declining hospital stays,” said Joe Simone, President of Simone Development Companies.
According to statistics from the Centers for Disease Control, the average length of a hospital stay declined nationally from 11.4 days in 1975 to 6.1 days in 2014.
“These government statistics are the reason why my company built the New York metro region’s first ‘bedless hospital,’ an 11-story facility in the Bronx that focuses on outpatient medical services that include surgery,” said Joseph Simone, referring to the 280,000-square-foot Montefiore Ambulatory Care Center. “Increasingly, we are seeing the construction of similar centers throughout the region and nationally.”
Hospitals are spending big money on new ambulatory centers as outdated sick wards receive fewer extended-stay patients. In Harrison, NY situated in the heart of Westchester County’s “Medical Mile” along I-287, Simone recently completed 104 Corporate Park Drive, a state-of-the-art pediatric ambulatory care facility custom designed for Montefiore Medical Center.
“These centers are critical for aging hospitals as they seek to upgrade their delivery of high-quality, specialty care,” said Joe Simone. “Today’s healthcare consumers are demanding higher levels of service and comfort from hospitals, which means that developers and landlords must pay special attention to building design.”
BRONX, NY (August 9, 2021) — Healthcare real estate developer Joseph Simone foresees big investment in medical office makeovers as doctors jump on the medical spa bandwagon.
“A national boom in consumer demand for medispas has medical practices and hospitals turning to real estate developers for new locations or renovations of existing offices, lounges and treatment rooms to deliver a spa environment,” said Joe Simone, President of Simone Development Companies. “Consumers willing to spend big money on cosmetic lasers, injections and other elective procedures expect new levels of comfort from their providers.”
A recent article in Medical Economics estimated that the medical spa market is expected to reach $33.9 billion by 2026, with a compound annual growth ratio of 13.8%.
“Once the realm of estheticians and dermatologists, medical spas are increasingly seen by medical practices and hospitals as a revenue stream that allows established healthcare groups to bring their brand recognition to a booming field,” said Joseph Simone.
Big retailers are also jumping on the medispa bandwagon. Earlier this year, Jack Nathan Health, a company that operates medical clinics inside Walmarts in Canada and Mexico, announced that it is expanding to eight more Walmarts in Canada to offer cosmetic injections, including Botox.
“The growing interest in wellness and self-care means that medical providers must reevaluate sterile medical office environments,” said Joe Simone. “Simone Development Companies is ready to partner with medical groups to design successful medical spas.”
Conveniently located in the heart of the sought-after Carnegie Hill neighborhood on Manhattan’s Upper East Side, 62 E 88th Street is a 19,000 square-foot state-of-the-art medical condominium in a luxury doorman building. Known as Park Avenue Medical Arts Center, the building’s medical suites offer private elevator access, a separate entrance and a renovated lobby. The building is close to major Manhattan hospitals including Mount Sinai Medical Center, Lenox Hill Hospital, NewYork-Presbyterian, Weill Cornel Medical Center and the Hospital for Special Surgery. The property also offers easy access to mass transit.
A projected increase in knee replacement surgeries will fuel the growth of ambulatory surgical centers, according to healthcare real estate developer Joseph Simone.
“We are experiencing a revolution in knee replacement technologies that are allowing doctors to perform minimally invasive surgeries that do not require hospital settings,” said Joe Simone, President of the Simone Development Companies, a leading developer of healthcare facilities. “For real estate developers, that means we will see greater demand for new ambulatory surgical centers as increasing numbers of the active elderly seek solutions to joint pain.”
In June, Renub Research Analysis published a report on the global knee replacement market. Renub predicted that in the United States, the value of knee replacements will rise from $8.02 billion in 2020 to $12.87 billion by 2027, a compound annual growth rate of 6.99%.
“Knee replacements will become more common and most of them will occur in the types of ambulatory surgical centers that Simone Development Companies have built, such as the Montefiore Hutchinson Campus in the Bronx, NY,” said Joseph Simone. “By 2040, the Centers for Disease Control and Prevention estimated that 78 million adults in the U.S. will be diagnosed with arthritis.”
Patient interest in ambulatory surgical centers accelerated during the Covid-19 pandemic, when many hospitals were closed to patients who did not need life-saving interventions. Many patients who needed elective surgery like knee replacements were also reluctant to enter any facility that resembled a hospital for fear of contracting Covid-19.
“The construction of ambulatory centers has been strong for years, but with the pandemic and innovations in surgical procedures, the demand for these facilities is exponentially expanding,” said Joe Simone. “We are actively partnering with hospitals and other healthcare providers to identify locations for new construction.”
Real estate developer Joe Simone says that a recent U.S. Census report demonstrates how aging Baby Boomers are driving growth in healthcare real estate and jobs.
“The expansion of healthcare complexes nationwide is partly due to the aging Baby Boomers, who as they age require more medical services,” said Joseph Simone, President of the Simone Development Companies, a leading developer of healthcare facilities. “The oldest Baby Boomers are now 75. I foresee the demand for nursing homes, assisted living, rehabilitation centers and ambulatory facilities to quickly grow to accommodate a surge in the elderly population.”
U.S. Census reported last month that from 2010 to 2019, the percentage of the population 65 and older grew nationally (from 13.1% to 16.5%) in all 50 states and the District of Columbia. This growth in the elderly population is affecting the national job market. According to the U.S. Bureau of Labor Statistics, registered nursing is listed among the top occupations in terms of job growth. Employment of registered nurses is projected to grow 7 percent from 2019 to 2029, faster than the average for all occupations.
“All these new nurses will find employment in new or expanded healthcare complexes. Real estate developers will be very busy over the next decade delivering new buildings where the growing ranks of health practitioners will work,” said Simone.
Healthcare providers are already positioning themselves to receive the aging Baby Boomers, who demand convenience and amenities. Simone Development Companies renovated Mount Sinai Doctors’ 80,000-squar-foot facility in Greenlawn, NY to create a modern physical plant that conforms to current design standards and provides a high-quality patient experience.
“Healthcare real estate developers must take the Census and BLS numbers seriously and identify new building sites,” said Simone. “Yesterday’s doctors’ offices are not equipped to handle the coming wave of aging Baby Boomers.”
This repositioned three-story, 62,000 square-foot medical office building has been extensively renovated including new lobbies, common areas, façade work, energy management upgrades and a beautifully landscaped entry. The property has a diverse group of medical tenants and is less than a mile north of world-renowned Hackensack University Medical Center and less than a half mile from the Anderson Street NJ Transit station. The property offers excellent accessibility to Interstate 80, Route 17, Route 4, the Garden State Parkway and Interstate 95/NJ Turnpike.
