Property management is the last source of unregulated income for health care providers

The Capital Performance Management (CPM) approach to property management is comprised of both business strategy and occupancy strategy. In business strategy, we explore the opportunity to approach activities as a profit center. As an example of a change in business strategy, CPM altered a client’s view of foodservice by changing it from a cafeteria to a restaurant. The result transformed a cafeteria operation that previously operated at a $1 million annual deficit into a restaurant generating $1.5 million of revenue for the client after the cost of all patient meals. In addition to strategy related to the way services are delivered, property management also considers what services a health care provider will offer in the communities it serves.

Occupancy strategy considers where, when and how services are provided to the community. In deciding where services will be provided, it is important to consider whether those services will be more convenient to patients if delivered onsite or offsite and where reimbursement rates for the service may be better. Occupancy strategy considers the time to get services to market by evaluating the adaptability of existing space to new modalities of care, the decision to own or lease offsite space and the highest and best use of occupancy. As CPM works with its clients to develop their occupancy strategies it also works to establish a “re-merchandising” plan for the space they will occupy. By considering how the space might be used in the future, the re-merchandizing plan improves the adaptability of the designed space.