The demand for accessible healthcare across the U.S. is expected to grow more rapidly with the arrival of the “silver tsunami.”

Americans aged 65 and older are the fastest-growing population segment in the country, increasing by 24 million people over the next 25 years — a 47% uptick. This major demographic shift, coupled with the demand for improved accessibility, has spurred changes in healthcare real estate.

“Demand is growing for medical services and will only get bigger in the future,” said Kate Galpin, principal and lead medical planner at Boulder Associates. “As a result, we’re seeing more services move from hospitals to outpatient facilities for reasons of efficiency, affordability and accessibility. There’s a substantial shift taking place in this industry.”

Galpin said this trend is occurring across the nation, but it has planted roots in the Pacific Northwest. In Washington, healthcare employs more people than any other industry. Nearly 20% of the population in Oregon is 65-plus, the demographic that will need the most medical care. And in Idaho, the middle-aged population and number of senior citizens continue to grow, as about 40% of the state’s population is 50 and older.

All of these factors support the notion of a strong and growing healthcare real estate market, Galpin said. But how will these shifts affect healthcare design, staffing and services?

Galpin will speak at Bisnow's Pacific Northwest Healthcare Conference on Oct. 15. Register here.

Bisnow spoke with Galpin to learn more about these trends, what the key design features of these facilities should be moving forward and what she thinks attendees will be most excited to hear about.

Bisnow: What new market trends have you noticed in the Pacific Northwest’s healthcare sector this year, as well as nationally? 

Galpin: Nationally, I’ve been seeing more developers creating relationships with health systems and helping to support the mission of site-of-care shifts. This includes moving more services to outpatient facilities.

I've seen this switch for the last several years, especially in Southern California. But you're starting to see it more in the Pacific Northwest. People are starting to implement strategies to move outpatient services out of the hospital to more affordable, convenient locations, which is great.

You're also starting to see a lot of the consolidation of health systems and medical groups. That's a big piece of the puzzle, and it is driving some of the healthcare buildings that we've been seeing come together recently. It is really about supporting the mission and working toward an optimized experience for both patients and staff.

Bisnow: At this event, you’ll be speaking about medical office building demand and development in PNW. What are key design aspects to consider going forward? 

Galpin: Understanding the populations you're designing for and thinking hard about what the future looks like for a particular community is so important to be able to design the right facility. You have to make sure you accommodate the services needed for the projected growth, demographic changes, and the ever-changing landscape of healthcare. It is so crucial to create flexibility in the design because of these shifts, especially as we start to see this older generation come into the forefront.

Demand is climbing for medical care and will only increase in the future. I think that it will bring other players to design medical office buildings that haven’t usually had their foot in the door. It's a bit of a learning curve to really understand and be able to respond to the specific needs of healthcare but will be exciting to see how it plays out.

Bisnow: What challenges are PNW’s healthcare industry witnessing this year, and how is the industry equipped to handle these challenges?

Galpin: From a design perspective, there's a lot we're grappling with. Cost of healthcare and cost of construction are still huge aspects of the industry. Staff shortages are also something that we see health systems struggling with across the board.

I’m also still seeing a hesitation with folks cutting funds loose for projects. We’re still dealing with the complex financials of health systems since the pandemic started. People are still asking, “Where do I spend my money?” and, “I know what I need to support my community, but what can I afford to build?”

Working to fill the gaps between what is needed and what health systems have to work with is very important. That's why at Boulder Associates, we’re partnering with folks to bring more efficient designs and delivery of care to the table.

Bisnow: What do you think will be a trending topic of discussion at this event? 

Galpin: I suspect there'll be a couple of things people will be listening for. The first is how the presidential election is going to impact the industry. That's going to be top of mind for everyone at this point. Policy and priority changes of one candidate versus the other could have an impact on the projects that health systems start to think about implementing.

I also think folks will be excited to hear about what others are doing or are planning to do in the future. Right now, we see a lot of interest in benchmarking how any given project aligns with other recent successful projects.

We think it's important to apply all of our experience in medical office design to give people a sense of comfort that the decisions they're making are data-driven and in line with industry standard. Everyone will be excited to hear about all of the opportunities within the medical office space right now.

This article was produced in collaboration between Boulder Associates and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.