In commercial real estate, it’s widely acknowledged that location is key. In the healthcare sector, the increase in physician business when located near a hospital can vary widely depending on several factors, such as the type of medical practice, patient demographics, and local competition. While there isn’t a definitive percentage applicable to all scenarios, proximity to a large hospital can lead to a notable increase in business.
1. Referral Volume Boost
• Specialists such as cardiologists, oncologists, and orthopedic surgeons may see a 20-50% increase in new patient volume due to referrals from hospital-based physicians and departments.
• Primary care practices near hospitals may benefit from a 10-30% increase in patient visits as patients seek providers close to facilities where they may need further treatment or diagnostics.
2. Patient Preference and Convenience
• Studies and industry reports often indicate that practices near major hospitals experience higher patient volumes simply due to the convenience factor. Patients prefer having their primary care, specialist, and diagnostic services in close proximity to a hospital, which can lead to an increase in patient traffic by 15-25%.
• Practices offering ancillary services like lab work, imaging, or physical therapy often see increased use from patients who have been recently treated or discharged from a nearby hospital.
3. Enhanced Credibility and Walk-Ins
• Being close to a hospital can elevate the credibility and perceived reliability of a practice, drawing patients who trust medical providers associated with or close to established hospital systems. This can lead to an estimated 10-20% boost in patient volume through word-of-mouth and reputation alone.
• Walk-in traffic or patients seeking follow-up care after hospital visits can contribute an additional 5-15% increase in business, especially for urgent care centers or general practices.
4. Collaboration and Integrated Care
• Practices that partner with hospitals for integrated care or participate in hospital-affiliated programs (e.g., post-operative follow-ups or chronic care management) can see a 20-40% increase in related patient visits.
5. Market Studies and Industry Reports
• Some healthcare market studies suggest that medical practices within a 1-2 mile radius of a major hospital can experience up to 30-50% more patient traffic compared to those further away, largely due to enhanced visibility, referrals, and the draw of hospital-associated services.
• Larger practices that actively leverage hospital relationships, such as through co-marketing or shared patient initiatives, may see even greater gains.
6. Type of Practice
• Specialized practices (e.g., surgical centers, specialists in fields like gastroenterology or oncology) may see a more significant increase compared to general practitioners.
• Outpatient facilities close to hospitals often benefit from post-hospitalization care referrals, leading to an increase in patient volume by 20-35%.
Conclusion
While specific numbers vary, a medical practice’s proximity to a large hospital can lead to significant growth in patient volume, often ranging from 10-50%. Practices should consider strategic partnerships, community outreach, and active engagement with hospital staff to fully leverage the advantages of their location.
