Building a high performing healthcare real estate portfolio is dependent on acquiring or developing assets which create a strong performing environment for your healthcare tenants and their healthcare clients.
To understand what your healthcare tenants are looking for here is a quick insight into the key findings on long term health conditions and chronic conditions and prevalence in Australia as prepared by the Australian Bureau of Statistics and released in December 2023.
The National Health Survey (NHS) 2022 is the most recent in a series of Australia-wide health surveys. It is designed to collect a wide range of information about the health of Australians, including:
Prevalence of health conditions
Prevalence of health risk factors (such as smoking and vaping, alcohol consumption, and physical activity)
Demographic and socioeconomic characteristics.
By looking at this data we can see the larger trends at play that will influence demand for healthcare services and provide greater stability for our healthcare assets. So let's dive into the data.
Key Statistics
Eight in ten (81.4%) people had at least one long-term health condition
One in two (49.9%) people had at least one chronic condition
Mental and behavioural conditions (26.1%), back problems (15.7%), and arthritis (14.5%) were the most common chronic conditions.
The most prevalent chronic conditions experienced in Australia in 2022 were:
Mental and behavioural conditions – 26.1%
Back problems – 15.7%
Arthritis – 14.5%
Asthma – 10.8%
Diabetes – 5.3%
Heart, stroke and vascular disease – 5.2%
Osteoporosis – 3.4%
Chronic Obstructive Pulmonary Disease (COPD) – 2.5%
Cancer – 1.8%
Kidney disease – 1.0%.
The below graph illustrates that as populations age the likelihood of multiple chronic conditions increases to 50% for 65 years and over.
A Breakdown of Chronic Condition Statistics
Arthritis
Arthritis is an umbrella term that refers to a wide range of inflammatory conditions that affect the bones, muscles, and joints. This often results in pain, stiffness, swelling, and redness in affected joints.
Just under 3.7 million (14.5%) people had arthritis in 2022
Prevalence of arthritis has remained stable since 2004–05 (15.3%)
People aged 75 years and over were more likely than any other age group to have arthritis (48.9%).
Osteoarthritis was the most common type of arthritis in 2022 (57.0%), followed by other arthritis and type unknown (37.3%) and rheumatoid arthritis (13.9%).
Asthma
Asthma is a long-term lung condition that is caused by narrowing of the airways when they become inflamed. People with asthma experience difficulty breathing, and the most common symptoms are wheezing, coughing, breathlessness and chest tightness. Asthma may affect people of all ages and can usually be managed through treatment such as medication use (e.g. reliever inhalers and preventer/controller medications) and a healthy lifestyle.
Just under 2.8 million (10.8%) people had asthma in 2022
Almost one in three (32.1%) people with asthma had a written action plan
One in three (33.9%) people with asthma used asthma medication daily.
Cancer
Cancer is a large range of diseases in which the body's cells grow and spread in an uncontrolled manner. A cancerous cell can arise from almost any cell, and therefore cancer can be found almost anywhere in the body.
Around one in fifty (1.8% or 456,200) people had cancer in 2022
One in three (34.9%) people with cancer had skin cancer, the most reported type of cancer
Males were slightly more likely to have cancer than females (2.1% compared to 1.6%).
Chronic Obstructive Pulmonary Disease (COPD)
Chronic Obstructive Pulmonary Disease (COPD) covers a range of conditions including emphysema, chronic bronchitis and chronic asthma. The condition causes narrowing of the bronchial tubes in the lungs (sometimes called bronchi or airways) which makes breathing difficult.
COPD prevalence has remained steady over the last decade, from 2.4% in 2011–12 to 2.5% in 2022
One in fourteen (7.0%) people aged 65 years and over had COPD, more than any other age group.
Diabetes
Diabetes is a chronic condition where the body cannot produce enough insulin, a hormone essential for converting glucose into energy. If poorly managed, diabetes can lead to additional health complications, such as heart attack, stroke, and limb amputation.
One in twenty (5.3% or 1.3 million) people had diabetes in 2022
Males and females had similar rates of diabetes (5.8% and 4.9%)
Diabetes prevalence has slowly increased from 3.3% in 2001 to 5.3% in 2022.
Heart, stroke and vascular disease
One in twenty (5.2% or 1.3 million) people had heart, stroke and vascular disease in 2022
Prevalence of heart, stroke and vascular disease has increased slightly since 2001 (4.1%)
Heart, stroke and vascular disease was slightly more common in males than females (5.9% compared to 4.6%).
High cholesterol
Cholesterol is a type of fat that circulates in the blood. It is essential for many metabolic processes, including the production of hormones and building cells. Too much cholesterol in the bloodstream can lead to fatty deposits building up in the blood vessels, making it harder for blood to flow and increasing the risk of heart disease or stroke.
One in twelve (8.4% or 2.1 million) people had self-reported high cholesterol in 2022
The prevalence of high cholesterol has increased since 2011–12 (6.8%)
Almost three in ten (29.0%) people aged 75 years and over had high cholesterol.
Hypertension and high measured blood pressure
Hypertension is the medical term for high blood pressure over a long period of time. It can lead to serious health problems such as heart failure, stroke, heart disease, or kidney disease.
Over one in ten (11.6% or 3.0 million) people reported having hypertension in 2022
Prevalence of reported hypertension was similar for males and females (11.7% and 11.6%)
Three in four (74.5%) adults with high measured blood pressure did not report having hypertension.
Kidney disease
Kidney disease is a chronic condition in which a person's kidney function is reduced or damaged. The kidney’s main task is to clean blood and filter waste out through urine. When kidneys aren't functioning as they should, waste gradually builds up in a persons' body, and this can have a devastating impact on their health. This condition is called kidney disease – the loss of normal kidney function over time. It can also be called kidney failure, which is the end-stage of kidney disease[1]. Kidney disease is also often associated with other chronic diseases such as diabetes and cardiovascular disease.
246,200 people (1.0%) had kidney disease in 2022
Kidney disease prevalence has remained steady over the last decade, from 0.8% in 2011–12 to 1.0% in 2022
One in twenty (4.9%) people aged 75 years and over had kidney disease.
Health Risk Factors
Alcohol consumption
More than one in four (26.8%) adults exceeded the Australian Adult Alcohol Guideline in 2022
Males were more likely than females to exceed the guideline (35.8% compared to 18.1%)
More than one in three (36.1%) young adults aged 18–24 years exceeded the guideline.
Dietary behaviour
Adults and children had similar rates of meeting both fruit and vegetable recommendations (4.2% and 4.3%)
More than four in ten (44.1%) adults met the fruit recommendation and more than six in ten (63.9%) children met the fruit recommendation.
Physical activity
Almost one in four (23.9%) people aged 15 years and over met the physical activity guidelines
Nearly half (46.9%) of employed adults aged 18–64 years described their day at work as mostly sitting.
Smoking and vaping
One in ten (10.6%) adults were current daily smokers in 2022, this rate has steadily declined from 22.4% in 2001
Nearly three in five (58.3%) adults have never smoked
One in seven (14.4%) adults have used e-cigarette or vaping devices.
Waist circumference and BMI
More than two in three (67.9%) adults had measured waist circumference that put them at an increased risk of disease in 2022
Almost two thirds (65.8%) of adults were overweight or obese.
Key Tenants to Consider for Your Healthcare Real Estate
So with all this data how can we use it to best build a high performing healthcare real estate portfolio? Well if we look at these key issues and the health professionals who address these issues we can use this information to create a stable referral ecosystem, medical precinct or specialist centre for our tenants.
Depending on your location, demographics and competing or supportive healthcare precincts, try targeting the below tenants to build out your high performing healthcare real estate precinct.
Mental Health
General Practitioners
Psychologists
Psychiatrists
Mental Health Nurses
Mental Health Occupational Therapists
Back Problems
Physiatrist
Physical Therapists
Anaesthesiologist
Rheumatologist
Spine Surgeon
Orthopaedic Surgeon
Neurosurgeon
Arthritis
Rheumatologist
Diabetes
Endocrinologists
Dietitian
Diabetes Nurse
Podiatrist
Heart, Stroke and Vascular Diseases
Cardiologists
Osteoporosis
Endocrinologists
Rheumatologists
Geriatricians
Gynaecologist
Physical Therapist
Orthopaedic Surgeon
Chronic Obstructive Pulmonary Disease
General Practitioner
Pulmonologist
Pharmacist
Mental Health Therapist
Nutritionist or Dietitian
Thoracic Surgeon
Palliative Care
Cancer
Medical Oncologist
Surgical Oncologist
Radiation Oncologist
Remember this is just a list based on key chronic conditions, there a plenty of other ways to build healthcare centres but if you're new to the space this is a great way to start.
Comments