Any healthcare facility must carefully consider how to introduce a new orthopedic service line. The three alternatives are building brand-new structures, buying existing ones, or renting available space. The best course of action can only be determined after thoroughly weighing the pros and cons of each available choice. Negotiating a leasing deal that meets the hospital’s requirements and budget can avoid the costs of purchasing or building a new building. When a hospital leases out space, it frees up resources that can be put toward patient care. The hospital can advance its mission of providing exceptional patient care by considering all available options. This paper will examine the pros and cons of three potential strategies for introducing a new orthopedic service: building from scratch, buying an existing space, or renting space. This essay will compare and contrast the possibilities for accommodating the new orthopedic service line and conclude that leasing space adjacent to the hospital is the best solution.
Building Space for the New Orthopedic Service Line
The primary benefit of building new facilities is that the hospital can better tailor the layout to accommodate its needs (Nelson et al., 2020). It can design a facility specifically for its orthopedic patients and employees, which may improve patient care, employee happiness, and productivity. The hospital also benefits from having a long-term asset that can grow in value. Moreover, it allows for the most discretion and customization, with layout modifications that may suit a given service’s requirements.
There are, however, drawbacks to constructing a space. This is the most expensive choice to accommodate the growing demand for the orthopedics department’s services. Why? The hospital must pay for building expenses, including those of architects, engineers, and workers. Over time, it will also have to pay for the building’s depreciation. In addition, planning, permissions, and permits for constructing space are time-consuming and might cause delays (Nelson et al., 2020).
Buying Space for the New Orthopedic Service Line
Buying space offers several benefits. Rather than waiting for development to be completed, the hospital may immediately purchase and use an existing structure. Patients and staff would benefit from the building’s proximity to the hospital or its location on campus. Purchasing property that increases in value is another reason to consider doing so. Buying space is an intermediate option for developing the new orthopedic service line, needing a smaller initial investment. More freedom and flexibility are available than with leasing or constructing from scratch. There are, however, drawbacks to leasing or purchasing space. The hospital will require ready cash or access to borrowing to cover the substantial up-front costs of purchasing a building. In addition, the hospital will have to pay for regular upkeep, and the structure may depreciate over time.
Leasing Space for the New Orthopedic Service Line
Leasing space has the benefit of being a cheap alternative. The hospital can save up-front costs by leasing rather than buying or constructing a new facility. The hospital can relocate or grow to a new location at the end of the lease term. Buying space is an intermediate option for developing the new orthopedic service line, needing a smaller initial investment. More freedom and flexibility are available than constructing from scratch (Nelson et al., 2020). Also, in comparison to building or leasing, this option has fewer risks.
There are, however, drawbacks to the leasing option. Since the medical center will not own the building, it cannot make significant changes to the interior. It is essential to factor in lease payments as a recurring cost. Leasing space for the new orthopedic service line is typically the most cost-effective but offers the least flexibility and control. It is the safest and most reliable option but may cost more in the long run.
Recommendation
According to the Service Line Development Case Study data, locating the new orthopedic service line in a building close to the hospital would be best. This will allow for the most powerful personalization and control, the lowest possible level of risk and liability, and a manageable financial outlay. Given the scarcity of on-campus real estate, investing in off-campus property may make economic sense (Nelson et al., 2020).
After weighing each solution’s pros and cons, the best option would be leasing space for the new orthopedic service. The hospital will have an affordable and adaptable choice in leasing space. The hospital might avoid the expenses of buying or constructing a new structure by negotiating a leasing agreement that is suitable for its needs and budget. Leasing space also frees up the hospital’s resources to be better used in patient care.
Conclusion
It is crucial to analyze the pros and downsides of each choice when deciding how to house a forthcoming orthopedic service. Customizing a building’s layout is possible but comes at a time and financial cost. The purchase price of the ready-to-occupy space is high, however. Because of its low cost and adaptability, leasing is the preferred alternative for the hospital. By carefully considering all of its options, the hospital can make a choice that furthers its goal of providing excellent patient care. Overall, renting a space close to the hospital would benefit the new orthopedic service line. This approach may minimize its risk exposure and maximize its setup’s flexibility.
References
Nelson, T. A., Anderson, B., Bian, J., Boyd, A. D., Burton, S. V., Davis, K., … & Starren, J. B. (2020). Planning for patient-reported outcome implementation: development of decision tools and practical experience across four clinics. Journal of Clinical and Translational Science, 4(6), 498–507. https://www.cambridge.org/core/journals/journal-of-clinical-and-translational-science/article/planning-for-patientreported-outcome-implementation-development-of-decision-tools-and-practical-experience-across-four-clinics/7ADF039B83E0202DB21218F0721AAEE3
write