When prospective condo owners and renters are shopping for a new place to live, they’re looking at the features within the unit itself, but also within the building and community. In the multi-family amenity arms race, wellness spaces and services are increasingly popular. One that is starting to trend is an on-site or nearby partnered medical practice.
Is this option right for your project? What factors should you be considering if having one within or near your community will draw health-conscious prospects? What are some cautions?
One option available to developers and operators is concierge medicine. “Concierge primary care is a relationship between a patient and physician in which the patient pays an annual fee, or retainer,” explained Thomas W LaGrelius MD, FAAFP, president of the American College of Private Physicians and a Los Angeles-area physician. “In exchange, doctors provide enhanced care, including principally a commitment to limit patient loads to ensure adequate time and availability for each patient,”
“The concierge doctor can be available virtually all of the time to his/her patients,” he added. In the two decades or so since the field was established—particularly as the pandemic overloaded hospitals—the concierge medical market has grown rapidly. Grand View Research estimates growth of 10.4 percent between 2024 and 2030.
There are different medical models to partner with—from individual/small group practices to specialized services to branch clinics tied to major medical facilities. Founded in 2020, Fountain Life is a membership-based advanced diagnostics, longevity and preventative health company with a strategy to integrate its programs and centers with multifamily developers.
“Developers often spend substantial amounts on amenities, such as $150 million for a wave pool,” shared Shawn Buchheit, the Orlando-based firm’s COO. “When considering a Fountain Life center, which costs around $7 million, they want to understand how this investment stands out. We emphasize that a Fountain Life center is not just an amenity but a robust business model that generates revenue and integrates various wellness experiences.”
Then there are the major medical organizations like the University of Miami Health System (UHealth) and the New York-based Mount Sinai Health System that are literally branching out into new communities. Mount Sinai is opening a concierge facility for Palm Beach County with preferred pricing and 24/7 access to residents of the Alba Palm Beach condo development—12 miles from its doors. “Members also gain seamless access to renowned Mount Sinai specialists in New York City and a curated list of specialists in Palm Beach County,” Brian Miller, a Mount Sinai marketing executive, commented.
UHealth is opening its clinic within the SoLé Mia mixed-use development in North Miami next summer. “Once complete, it will be UHealth’s largest outpatient medical facility,” said Vandana Pathak, assistant vice president for ambulatory operations at the health organization’s SoLé Mia project.
With 17 care areas, this facility will move academic medicine beyond the university campus. “A building of this magnitude nestled within a multifamily real estate development doesn’t happen by chance,” Pathak noted. “By partnering with the entities and individuals who support our collective vision, this project, which will be one of the health system’s crowned jewels, was made possible.” She credits SoLé Mia’s developers as among them.
Mario Gaztambide, senior managing director of residential properties at LeFrak, one of those developers, notes that the 184-acre development in north Miami-Dade County has a wellness focus with a lagoon, walking path network and, of course, the new medical facility. “As soon as we became aware that UHealth wished to find a site in the north part of Miami-Dade County, we reached out,” he said.
His team worked closely with the facility on access control: “We needed to find the right balance between UHealth being an integral part of SoLé Mia and their understandable need to control access for their patients.” This led to a creative solution that allows pedestrian, but not vehicular access, between the medical center and the residential village next door, he said.
“UHealth will own and is fully responsible for the construction and operation of this state-of-the-art ambulatory care facility, but we have and will continue to continuously collaborate on ways that we can work together to create wellness activities and other synergies for the community,” Gaztambide explained.
Alba Palm Beach, a 55-unit condo tower to be completed in 2026, will be offering its residents preferred pricing for nearby Mt Sinai Concierge Care facilities. Those who opt for membership will have access to 24/7 primary care and top specialists and health screenings plus home and telehealth appointments. “While Mount Sinai isn’t located in Alba Palm Beach, it’s important to look beyond the four walls of development to see how you can best partner with industry leaders in the community to enhance the lifestyle of residents,” commented Kenneth Baboun, the community’s principal developer.
Lake Nona in Orlando, a 1,411-unit multifamily community, is partnering with Fountain Life on bringing a facility located within its town center, a short distance from its residential units. The developer, Tavistock Group, was drawn to the health company’s proactive and community care focus, said Vice President Jessi Blakley. “Their advanced diagnostics and preventative care services significantly enhance the wellness experience for Lake Nona’s residents,” she noted, adding that the entire region is health oriented.
“The neighborhood’s Health & Life Sciences District is a collection of hospitals, universities, and research facilities that run through the heart of Lake Nona,” Blakley pointed out. “That vision began more than 20 years ago with the opening of the University of Central Florida’s medical college in 2006.” Tavistock itself has worked with numerous health organizations, she comments, and the developer saw Fountain Life as a natural partner for this community.
So you want to bring in a medical practice to enhance your residents’ health – and your community’s wellness marketing? Tampa-based real estate attorney Kurt S. Gleeson with Stinson LLP said this is a trend many in the legal profession are watching closely.
“If a medical provider agrees to offer discounted services to the residents of a multi-family community, or if a developer/operator incorporates such a facility and practice within a community for residents’ use, it’s important to notify the residents in writing that the developer or operator has negotiated the discount solely for their convenience and benefit and is not acting as a medical provider,” Gleeson said.
Otherwise, he warned, “the discount offer may subject the developer or operator to claims for the unlicensed practice of medicine and/or malpractice claims arising from the medical services provided.”
Before proceeding, he recommends weighing the costs and benefits of adding health features to your wellness offerings and seeking expert advice. “Consult with an attorney experienced in multifamily development issues and an insurance professional to identify any potential liability, and develop a risk mitigation plan for each amenity,” he suggested.
“One thing we learned is that it is essential when bringing a complex and significant medical facility into your community to work with a first-class organization,” LeFrak’s Gaztambide advised.
Developed by:
© 2024 Scuba Club WPB, LLC. All Rights Reserved.
