RENDINA  Beckers Cich Article  01.2018

The Do’s and Don’ts of Selecting a Healthcare Development Site

Brian Cich, COO of Rendina, recently authored an article on helping healthcare organizations that are contemplating development plans in 2018. The article, “The do’s and don’ts of selecting a healthcare development site,” was published on January 11, 2018 on Becker’s Hospital Review’s website. The article can be read in full from the link below.

Click Here for the Full Article


Many healthcare organizations engage a development partner at the early stages of a project to help them set criteria and evaluate properties with those considerations in mind. Most commonly, healthcare organizations set priorities related to location, lot size, cost and speed to market.


Often, the desire or need for a physical presence within a specific geography will drive a healthcare development forward. However, geographic constraints are rarely the only consideration when it comes to facility location. Among other important factors are: Visibility to potential patients, proximity to other healthcare access points,and convenience.


Ideally, you want a piece of property that can accommodate your development with little or no excess acreage. Unless there are plans for expansion, you should be careful not to over-purchase – thereby using capital that could be deployed elsewhere. However, under-purchasing creates a bigger challenge. When a site is too small, it may force you to adapt your development plan, sometimes to the extent of reducing programs or services if you are unable to make everything fit. Worse, you may have to start over and consider other sites, adding time and cost to the development process.


Location, lot size, convenience and other site characteristics will all affect the price of a piece of property. It’s important to know up-front how much capital can be allotted for property so as to keep the overall project on budget.

Consider, too, that in most cases the overall difference between purchasing and ground leasing a property is minimal when you factor in the long-term lease expense. On the other hand, there can be a major cost difference between building from the ground up and retrofitting an existing building.


Every property is unique. Some parcels of land may have issues that must be resolved before development can begin – such as zoning code changes, variances, or environmental remediation. Resolving such regulatory hurdles can be time consuming and may be enough to rule out a property if you want or need to move quickly toward project completion. Be sure to understand any potential regulatory hurdles before settling on a property so you can avoid any unnecessary delays or surprises.

Site selection and property development are complex issues with many factors to consider. Keeping these do’s and don’ts in mind can you begin an effective site search process.

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