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.”

As our society ages, there will be a greater demand for rehabilitation complexes that require significantly more square footage per patient than hospitals, according to Joseph Simone, President of Simone Development Companies.

Simone said the expanding need for rehabilitation centers is a question of demographics. According to the U.S. Census Bureau, the number of Americans over the age of 65 will outnumber the amount of youth under 18 by 2034. Longer, more active lifespans will make the need for physical rehabilitation likelier for many seniors over the course of their golden years.

Rehabilitation centers typically offer transitional care for patients released from hospital care but who aren’t ready to function on their own. The patient visits range from a few days to two weeks for orthopedic, cardiovascular, and neurological recovery or up to months for cases of traumatic brain injury.

“Increasing patient choice, high-deductible insurance plans and elective surgeries will require rehabilitation centers to compete for clients by offering greater amenities and services. Patients will seek facilities that offer calming spaces for recovery, not sterile medical suites. Space-consuming amenities include physical therapy gyms, therapy pools and upper extremity training rooms, among others,” said Joe Simone.

Simone Development, which is a leading developer of state-of-the-art healthcare facilities, understands patient and family demands for supportive services, advanced technology, privacy and amenities. “We expect the 21st-century rehabilitation center to include single patient rooms, many common spaces, ample therapeutic space, accessibility to outdoor areas and family participation lounges,” said Simone.