How Can Hospitals Avoid Real Estate Related Mistakes?

Several problems may arise if a hospital fails to pay enough attention to the real estate aspect of its functioning. Yes, it is true that the modern innovations such as hospital management software have made things more lucid for hospital administrators, but a lot still needs to be done. The common conception is that the expenditure of a hospital on human resources perhaps takes up the most significant chunk of revenue use, as per sites such as https://www.ibef.org/industry/real-estate-india.aspx. But the real estate facet also utilises a fair portion of the revenue. However, in most hospitals, the managers do not give enough emphasis on proper utilisation of funds in this regard.

If you think about it, then you will realise that there is a pattern in the decisions that most hospitals take in the course of facility management. Once you become aware of these generalised mistakes, it becomes relatively straightforward to manage the overall process. It is evident that hiring competent human resources and caring for patients should be the top-two concerns of any hospital. However, ignoring real estate is always a terrible idea that can cause many problematic issues.

Standard mistakes that hospitals make in real estate management

    • Underestimating the impact of real estate management
    • Not using real estate administration as a method to reduce operational costs
    • Creating a real estate portfolio without accurate optimisation
    • Improper planning with regards to capital assets
  • Not syncing management of real estate with the overall goals of the hospital

The mistakes as stated above create an atmosphere where the presence of real estate seems to be making minimal impact. It appears as if a meagre sum of money is spent on real estate and not much can be saved from it- but the reality is its exact opposite.

Some of you may be shocked to find out about the extent to which managers and owners undervalue the effects of reduced real estate management. The balance sheet of any hospital will tell you the exact impact of real estate and facilities. It requires proper analysis of not only the bottom line but also the financial statement in its entirety.

Only then, you can expect to arrive at solutions to improve your real estate management. Correct methods of administration will ensure that you save a lot of money in operating the hospital. Cost cutting without any adverse effects on the quality of services should always be the goal of any organisation. A hospital can achieve this by focusing on taking care of the real estate.

Steps that you can take for better management of real estate
The administrators of every hospital must assess the facilities of the hospital which are running smoothly and bringing profits. It is always the first step in the intelligent management of real estate portfolio. If the loss-making areas or facilities are not essential to the core values of your hospital, then you may consider getting rid of them. Removal of underperformers can be one of the sure shot ways to improve the bottom line of your financial statement. It will also make sure that you enhance the efficiency of other facilities.

Read Also : Arrival Of New Trends In Real Estate

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