Repurposing concepts for hospitals

Repurposing concepts for hospitals

The future of many hospitals is uncertain – not least because of the coronavirus pandemic. The issue of oversupply of facilities in proportion to population will gain new momentum. The situation is further exacerbated by the economic impact of shorter hospitalization times and concern that subsidies may be cut as a result of a drastic reduction in tax receipts. The consolidation of locations increasingly leads to the question of what to do with real estate that is not longer required, and what future use would make sense given the current market and local situation.

To what extent are you impacted by the structural change in the healthcare sector?

  • Are you having to change the current use of your hospital as the result of economic constraints or the consolidation of sites and services?
  • Can the facility be successfully repurposed?
  • Are there value creation considerations regarding the hospital building that has been closed down?
  • Is sale of the property an option?
  • Is a campus approach to use of space by tertiary services a possibility?



You have to address the following points

  • Overall economic viability
  • Market situation and competition
  • Efficient use of space
  • Appropriate repurposing concepts


Our approach to hospital repurposing concepts

As part of a thorough feasibility study, our experts first undertake a property valuation with Technical Due Diligence (TDD), and draw up a market and site analysis taking possible repurposing options into account. The final report includes rough cost estimates, thus providing a decision document. The revitalization process can then start, with Drees & Sommer defining the measures required, establishing an organizational structure, and estimating the investment costs. This is followed by actual implementation.

The benefits for you

  • Value creation for existing real estate
  • Appropriate repurposing ideas instead of costly vacancy
  • Revenue increase through leasing or one-time income from sale
  • Targeted exit strategy as a source of income
  • Expansion of product portfolio or business plan
  • Campus approach through involvement of tertiary services




Would you like to know more about repurposing concepts for hospitals?

Frank Pickel Head of Healthcare