Developers Are Getting Creative to Keep Healthcare Projects Moving

Higher interest rates and rising construction costs have made one thing clear—only the smartest and most flexible healthcare developers are still breaking ground. The fundamentals remain strong, but getting a project from concept to completion in today’s environment requires creativity, collaboration, and precision.

Developers are moving away from speculative builds and focusing on projects with clear operator demand and signed commitments. Build-to-suit models are thriving because they align interests and secure financing before a shovel hits the ground. Joint ventures between developers, health systems, and private equity groups are also becoming common, spreading risk while keeping projects viable.

Another major shift is in deal structure. Many developers are working with flexible debt partners or layering in mezzanine capital to get projects over the finish line. Others are pursuing adaptive reuse projects that bypass some of the permitting and cost hurdles tied to new construction. It is less about how many projects you can start and more about how strategically you can finish.

Markets with strong population growth and limited medical supply are still seeing steady development pipelines—especially across the Southeast, Texas, and parts of the Midwest. The opportunities are there, but every deal now needs to be modeled with conservative assumptions, patient capital, and clear demand drivers.

If you are developing or repositioning healthcare space and want to ensure your next project is structured for today’s financing realities, let’s connect and map out a game plan.

📅 Book a call: https://calendly.com/contact-loveladyperspective/15min

📬 Subscribe for weekly insights: https://www.loveladyperspective.com/contact