The Evolution of Care: From Hospital to Home

Across the U.S., healthcare delivery is undergoing a structural shift. Hospitals and health systems are moving more procedures and patient interactions out of acute-care campuses and into decentralized, outpatient, and even at-home models. This evolution—driven by cost efficiency, patient preference, and technology—is reshaping how and where care is delivered, and by extension, how medical real estate is valued and deployed.

A recent Becker’s ASC report found that roughly 60% of health system executives are pursuing or exploring joint ventures in ambulatory surgery centers (ASCs). These leaders are investing heavily in hybrid facilities, outpatient hubs, and home-based care programs as part of an integrated continuum that extends beyond the traditional hospital walls.

For real estate investors, this transition represents one of the most significant opportunities of the decade. The demand for smaller, flexible, well-located medical spaces is rising. Properties suited for conversion—such as former offices, strip centers, or ground-floor retail—can be repositioned into outpatient clinics, diagnostic centers, or micro-hospitals. Joint ventures between landlords and health systems are becoming more common, as providers seek to offload capital costs while maintaining control of their operational footprint.

Key Investment Themes:

• Outpatient Expansion: Expect continued demand for ASCs, urgent care, and specialty clinics near residential growth corridors.

• Conversions & Adaptive Reuse: Underperforming office and retail assets offer prime opportunities for medical repurposing.

• Partnership Structures: Health systems and physician groups are increasingly open to creative lease or JV structures with real estate capital.

• Technology Integration: Buildings with infrastructure for telehealth, imaging, and remote monitoring will command premium rents.

In Texas—and particularly in fast-growing markets like Austin—this shift is already underway. Developers are exploring smaller footprints, while institutional investors are targeting stable, long-term leases with healthcare operators. As care delivery continues moving closer to the home, the most successful real estate strategies will blend flexibility, medical-grade infrastructure, and accessibility to population growth centers.

This is not just a shift in care delivery—it’s an evolution in how communities experience healthcare and how investors capture its future value.