Can the Last Mile Delivery Movement Make Services More Accessible to an Aging Population?
By Ben Reinberg
Millions of Americans cannot access healthcare, and aging baby boomers create the most significant burden. According to the United States Census Bureau, approximately 54 million Americans are at least age 65, a number that is growing. This demographic shift creates a need for healthcare facilities to be accessible. One significant barrier is transportation. Studies have shown that about 3.6 million people fail to make medical appointments annually because of a lack of dependable transportation. The situation is much worse in rural and suburban areas where hospitals and medical offices are farther away, making regular and emergency care access more difficult.
What is the ‘Last Mile Delivery’ movement?
Not all is lost, however, as there is a silver lining for these struggles: The rise of the “last mile delivery” movement in healthcare. It seeks to bridge the gap between healthcare facilities and their clients by situating medical buildings strategically near residential areas. Think of the comfort that the elderly members of our society can have knowing that urgent care facilities, dental clinics, and hospitals are now accessible via a short bus ride or an easy walk. This proximity ensures not only easy accessibility to healthcare but also vastly improves the quality of life for the patients who would usually be burdened by the need to travel long distances.
Improved proximity with an associated improvement in health outcomes
The proximity of the facilities is necessary for better health outcomes among older people. Those receiving regular healthcare have better management of chronic ailments, early detection of new morbidities, and fewer rates of avoidable hospitalizations. Closer facilities create opportunities for patients to attend follow-up appointments and early treatment. As a result, they can reduce the complications of diseases and potentially lower the overall costs incurred from late medical attention.
The cost of limited access to healthcare services
When healthcare is not available, families often suffer severe financial and emotional costs. Missed doctor visits and skipped treatments result in complications that require more extensive, costly care in later stages. The National Institutes of Health estimated that preventable illnesses have a significant connection to overall healthcare costs and, for that reason, warranted special attention to immediate access to healthcare and access to routine care. It is not only a matter of personal costs, but a lack of available medical care leads to increased hospital admissions and places additional pressure on public health.
Investing in health infrastructure as a strategy
The last-mile delivery movement is only complete with massive community or private sector investment. New construction and renovation of existing facilities require investments in land acquisition, construction costs, and the installation of state-of-the-art medical equipment. Good infrastructure supports doctors and nurses and ensures that care is given without hindrance from power outages, plumbing failure, or poor facility maintenance.
Investments in healthcare real estate are on the rise
Investment in healthcare real estate has increased with the expanding demand for current, patient-oriented facilities. More recently, it has been reported that billions are being invested in developing healthcare infrastructure with high operational standards. This increase in investment in this sector is not only a trend but a response to the strategic evolution of needs due to the aging of the population and the changes demanded by the healthcare sector in tending toward decentralized, community-based care.
Advantages of modern healthcare buildings
- For investors: As medical needs increase with the population, healthcare buildings provide a sound and stable investment method with guaranteed long-term returns. Healthcare properties generally command long leases.
- For local economies: Medical facilities stimulate local economies during building and operation by creating jobs during the actual building and through permanent positions in the facilities.
- For patients and communities: New medical facilities advance access to care so that people receive quality service promptly and closer to their residences. The new facilities ensure state-of-the-art treatments that support improved health outcomes.
Trends in the medical real estate market
The medical real estate segment has been recording steady growth, and investors are attracted by the segment’s resilience during economic downturns. Emerging trends for outpatient services and ambulatory care centers reflect the desire for convenience and efficiency at the patient and provider levels. Specialized equipment and technology usually inherent in such facilities enable a wide range of medical services without requiring patients to be admitted to the hospital.
Closing thoughts
The last-mile delivery movement within healthcare could eventually shape how care is accessed, prioritizing accessibility, prevention, and long-term wellness. This could mean the difference between manageable healthcare journeys and daunting, potentially harmful obstacles for an aging population. By bringing medical services into local neighborhoods, individuals are empowered to take control of their health, ensuring that regular checkups, treatments, and urgent care are within easy reach.
Emphasizing community-based medical infrastructure, healthcare access and efficiency are at their best, reducing the burden on the patient and family. This vision requires sustained investment and commitment by private and public sectors to become real for visible better health outcomes and a robust health system.
Ben Reinberg, CEO of the Alliance Consolidated Group of Companies, is a leader in commercial real estate investments who specializes in driving investments into medical, retail properties, offices and multifamily housing in major markets across the United States.