Jan. 27, 2026
Micro Hospitals, Macro Impact: Leading Change in Construction for Rural Healthcare
Prefab ConstructionModular ConstructionIndustrialized ConstructionFuture Of WorkHealthcare ConstructionRural Infrastructure
Summary
In this episode of Activating Curiosity | Leading Change in the Construction Industry, Ryan Ware explores how micro hospitals are expanding access to healthcare in rural communities—and what this shift reveals about leading change in complex construction environments.
Ryan is joined by Peter Nicholson, Co-Founder and CEO of Modern Clinical Planning, for an insightful conversation focused on healthcare infrastructure, construction leadership development, and construction innovation. Together, they discuss best practices in construction change management, including standardized design, modular construction, and technology-enabled planning, showcasing how these approaches reduce costs, accelerate delivery, and effectively scale facilities in resource-constrained rural settings.
The discussion also highlights key leadership behaviors necessary for managing change resistance and guiding teams through uncertainty in the AEC industry. Listeners will gain valuable insights on construction change management best practices, leadership for change in healthcare projects, and the broader impact of construction leadership on community health, talent attraction, and operational resilience.
Whether you’re a construction executive, project manager, or change coach within the AEC industry, this episode offers actionable perspectives on leading change with clarity, curiosity, and purpose, helping you master the complexities of construction leadership and industry challenges.
Chapters
01:17 – Framing the Rural Healthcare Access Problem
03:44 – Hospitals as Products, Not One-Off Projects
07:45 – Accessibility, Affordability, and Smart Technology
11:09 – A New Delivery Model for Rural Healthcare Construction
18:27 – Capital, Mindset, and Resistance to Change
51:39 – Redefining Success: Wellness Over Profit
Guest
Peter Nicholson is a healthcare planner with over 35 years of experience designing and delivering hospitals and life science facilities worldwide. He specializes in integrating advanced medical technologies and has led projects for Harvard teaching hospitals, Cleveland Clinic Abu Dhabi, and other global healthcare systems. He is currently the CEO of a startup offering pre-designed, fully equipped micro hospitals as a scalable product to improve the affordability and accessibility of healthcare delivery.
https://www.modernclinicalplanning.com/
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https://ryanware.me/
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WEBVTT
00:00:00.080 --> 00:00:18.879
We can make it better, but I think that if things aren't deployed quickly, things are going to fall apart for many people, that they're not going to have good quality health care and access to it, that they are only they're going to have to travel hours and miles and miles in order to get health care.
00:00:18.879 --> 00:00:22.079
And that's difficult for people as they get older.
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So we have to bring health care to them.
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That's that's the point.
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If we don't bring health care to them, we have a more serious problem.
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And that revolves around access to healthcare and healthcare facilities that are, you know, not only within large cities, but also within rural areas and how we go about planning them with healthcare systems, but also how we design and build them.
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So today I have with me Peter Nicholson, and he is the co-founder and CEO and managing partner with Modern Clinical Planning.
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So hey Peter, how are you?
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I'm doing well.
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Thank you for having me.
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Yeah.
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Well, I'm looking forward to the conversation.
00:01:51.439 --> 00:02:01.040
I know we haven't had a lot of time to kind of connect personally, but your your post and the things that you were working on really started to catch my attention.
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Um and most people listening know that I have had a career in architecture and construction, but something always kind of piques my curiosity.
00:02:09.759 --> 00:02:13.520
And I thought, hey, this might be something that listeners might want to listen to as well.
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So I'm glad you're willing to be a part of the show.
00:02:15.680 --> 00:02:17.759
And why don't we kick off?
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Just tell a little bit about yourself, what you've done in your career and then your past, and then we'll kind of dive into activating curiosity.
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Yeah, well, I well, I help uh really design and build hospitals.
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I've been doing that most of my career.
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Uh I have skills integrating advanced medical technologies.
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I've worked uh and managed clinical projects for Harvard Medical School, the Cleveland Clinic, and others.
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I've worked not only in the Boston area, but also in uh Abu Dhabi and in Riyadh and in places in the Gulf.
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Sometimes people call it the Middle East, but really the Gulf, uh, building hospitals there.
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And uh in doing so, I've come up to the conclusion that hospitals have become too complex.
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And we've tried to develop a model that would make hospitals more affordable, uh, easy to build, and which would make them accessible for people in underserved areas.
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Yeah, I think it's, you know, as you just described, healthcare and building a hospital.
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I think most people will understand it, especially as you drive around and watch one be built.
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They don't see the backstory of how long it took to like plan that, not only from the owner's side, but but the architects and everybody involved.
00:03:39.280 --> 00:03:43.759
So they just kind of see it going up and there's just a huge amount of time that that spans, right?
00:03:44.000 --> 00:03:48.800
And what we try to do is we try to uh, well, our products are pre-designed.
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So from that point of view, we really use the word product, uh, saying that our micro hospital is a product that someone can build, they can customize, uh, they can brand it, but we do the heavy lifting behind the scenes.
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It's a turnkey idea.
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So this is a lower acuity hospital, not a high acuity hospital, but we think it has a real role uh to play in healthcare delivery.
00:04:15.520 --> 00:04:26.079
So you're you've gone through your career, you've spent your career not only in the States, you've done some work, like you said, um throughout the world with the Cleveland Clinic and others.
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Was it was it that initial problem that you were aiming to solve?
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Like, was it geared towards, hey, this planning process is is broken, or whether you thought it was broken or not, it just that's the biggest thing that we need to figure out.
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Um, or were there other little things that you just kept kind of seeing come up as you were designing and planning?
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Like, yeah, we're not addressing this.
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A number of them, a number of them.
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Um what in building, I think there's a place for large hospitals, first and foremost.
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I do think that with people with multiple diseases and or complications, they need to go to a sophisticated hospital.
00:05:06.399 --> 00:05:12.639
But I don't think that that's the way that most people need care delivered.
00:05:12.639 --> 00:05:28.000
Um we, you know, I in building large hospitals, I saw the complexity, I saw the uh the waste that went along with them, that people were doing the same thing to get an outcome more than once.
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So they were always rebuilding and rehashing something because it was complex and people did not understand it, or it wasn't in the right sequence of con construction.
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So, you know, but we what we saw is that, you know, hospitals were taking four years to deliver.
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Uh, and that's after the design.
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And in that amount of time, things can change.
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Certainly, technology changes and and has to be revamped, uh, but we don't see it as being a good way to deliver care to people.
00:06:05.279 --> 00:06:09.759
We have a hospital that we believe we can deliver in two years' time.
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So from the point that we have building permits that we get in the ground, we will have a hospital fully built for people ready for activation.
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And and that made a difference.
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Now, we try not to we try not to make it a complex hospital.
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We're not competing with the major hospital we're complementing.
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So we we are looking for 80% of those patients, that percent, can be, can be served by these hospitals.
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For that 20% that can't be people that have serious or more serious issues, they can be treated and transferred.
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So again, we see that as making health care accessible to people in their own local community.
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I always joke that, you know, if you're at one of our hospitals, somebody might come see you.
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Yeah.
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I mean, I, you know, the word accessible is something I was thinking about as you were talking and just being able to say it is like one, I think about how many people have to drive hours and hours staying overnight to go to go get the care.
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You know, maybe as you're saying, that would fit into that 80%.
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So it's about also enhancing individuals' lives, saving money also in their pocket of travel to to healthcare.
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So there's all these extra costs that humans feel, especially here in the States, that that are healthcare related, but unrelated to actual the healthcare services that you're going to receive by by being in a hospital.
00:07:44.959 --> 00:07:50.319
Yeah, I mean, accessibility, I think, is tied directly to affordability, first off.
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We also, I think, as as a society in general, aren't really using available technologies very well.
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And everybody thinks about AI nowadays, and and I'm all for it.
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I think that that can be helpful.
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But there are so many existing technologies that, if deployed, can help with the efficiency of hospitals, especially smaller hospitals, allow them to run efficiently and serve the people in the community.
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I this is really where we think we've made a bit of a breakthrough.
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And it's not using, you know, abracadabra kind of technologies.
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These are these are easily found technologies that, if properly integrated in the hospital, they make uh a big difference for, you know, for second opinions, remote diagnostics, for people um that, you know, uh need that second opinion, for uh OR integration systems where a doctor that's remote can actually see almost everything that's going on in real time in an OR or in a procedure that's going on, so that they can either mentor or support uh what's going on, and that makes a big difference.
00:09:10.399 --> 00:09:17.840
I mean, there there are many places where people in the United States are underserved.
00:09:17.840 --> 00:09:30.320
There are many places where a phrase that's been used uh most recently, healthcare deserts, where people really need to travel, I don't know, 45 minutes to get to a hospital.
00:09:30.320 --> 00:09:36.960
Well, we all know without being in the healthcare industry that time matters if you have a serious condition.
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If you're hurt, injured, or if you're having maybe a heart attack or something, you know, time is of the essence.
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And 45 minutes is a long time.
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For a small hospital that's affordable, that can be placed in a local community, it's a resource.
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It's a major resource to that community's well-being.
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And it can make a difference.
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We think of our hospitals as being fully deployed with equipment, with over $7 million worth of advanced equipment for $32 million complete in two years.
00:10:10.000 --> 00:10:13.279
I think that we're seeing this as a delivery method.
00:10:13.679 --> 00:10:18.000
There's so much that you just said that, you know, I think a lot of directions that we could go.
00:10:18.000 --> 00:10:29.679
Um, but very intrigued by, well, one, okay, so if we just back up and say we need to get healthcare more accessible to the patients, right?
00:10:29.679 --> 00:10:32.799
So it is a better patient experience.
00:10:32.799 --> 00:10:49.039
Two, the affordability side to get, you know, to get the healthcare system, these hospitals constructed in a timely manner gives them accessibility, not only a distance away from where they are, but quicker, right?
00:10:49.039 --> 00:10:52.799
Quicker to market so that you're taking care of of the patients.
00:10:52.799 --> 00:10:58.559
Now you you just mentioned, so okay, those things are sort of the problems.
00:10:58.559 --> 00:11:00.879
That's what you were aiming to solve.
00:11:00.879 --> 00:11:04.000
And now you just mentioned the delivery model.
00:11:04.000 --> 00:11:09.039
So talk a little bit about how your delivery model is different.
00:11:09.360 --> 00:11:12.240
Well, first and foremost, we see it as a product.
00:11:12.240 --> 00:11:25.600
Again, it's pre-designed, it's fully equipped, it's built on a turnkey basis, so that really the buyer of the hospital just has to make selections on possible options.
00:11:25.600 --> 00:11:28.639
They don't even need to take options if they don't want.
00:11:28.639 --> 00:11:34.159
There is a stock hospital that is functional that they can buy for the standard price.
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Once we know the options that they'd like in the hospital, we're ready to build.
00:11:39.200 --> 00:11:41.519
So I think that's the unique.
00:11:41.519 --> 00:11:57.120
There are a lot of uh healthcare systems that do deploy micro hospitals, but they do so as a proprietary uh facility that they've paid an architect and or engineer to develop specifically for them.
00:11:57.120 --> 00:11:58.799
They don't sell it to others.
00:11:58.799 --> 00:12:01.360
Ours is a non-proprietary product.
00:12:01.360 --> 00:12:03.519
And as you mentioned, the timeline.
00:12:03.519 --> 00:12:06.879
In other words, it it can't be accessible unless it's built, right?
00:12:06.879 --> 00:12:14.799
Oftentimes a hospital is built, that the the shell and core of the hospital is built, and then the equipment is installed.
00:12:14.799 --> 00:12:18.639
And that's a lot of times where things go awry.
00:12:18.639 --> 00:12:24.639
We installed the equipment as part of the construction process because we know how to do it.
00:12:24.639 --> 00:12:25.279
Right.
00:12:25.279 --> 00:12:34.879
Not only that, but these are relatively speaking, in the complexity of hospitals, these are relatively simple hospitals.
00:12:34.879 --> 00:12:42.720
And that's the the the value of them because that's what keeps also the cost reasonably low.
00:12:42.720 --> 00:12:45.279
We don't operate hospitals, we sell them.
00:12:45.279 --> 00:12:45.919
Right?
00:12:45.919 --> 00:12:47.679
We sell and build them.
00:12:47.679 --> 00:12:53.679
But in the operability point is that there's not that many healthcare workers.
00:12:53.679 --> 00:13:01.600
There's always uh a dearth of them in in these rural communities where they just don't have people to operate.
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By using technologies, we can minimize the number of staff and still maintain high quality standards.
00:13:09.279 --> 00:13:18.639
Yeah, so you're you know, not only getting the built environment taken care of, but providing a path thinking about the future labor force, right?
00:13:18.639 --> 00:13:32.480
Because I I think we all know that labor force is changing across all industries, and there is, you know, we talk about the shortage of labor not only within the construction side and that future labor force, but also in healthcare.
00:13:32.480 --> 00:13:48.320
The other area that you're talking about is hey, you're outside of a city and now you're in a rural area where there may not be either that that talent area or development where someone just doesn't want to live in in a rural area.
00:13:48.320 --> 00:13:51.279
Um that can do a lot of these things, right?
00:13:51.759 --> 00:13:53.360
A lot of changing demographics.
00:13:53.360 --> 00:13:56.320
There are a lot of changing demographics, no question about it.
00:13:56.320 --> 00:14:04.080
And I believe that one in seven people in America get their health care in a rural setting.
00:14:04.080 --> 00:14:05.360
That's a lot of people.
00:14:05.360 --> 00:14:12.159
I think it's something, you know, we're talking about, you know, uh 25 million people, something like that.
00:14:12.159 --> 00:14:14.320
I but it's something like one in seven.
00:14:14.320 --> 00:14:19.919
They the phrase healthcare deserts starts to come into play.
00:14:19.919 --> 00:14:24.000
And and you know, it's not only a rural solution.
00:14:24.000 --> 00:14:29.279
There are plenty of places in cities and towns where there are underserved communities.
00:14:29.279 --> 00:14:35.600
And and these can be, you know, we use a phrase about uh a hub in spokes.
00:14:35.600 --> 00:15:07.200
So really the major hospital is the hub, and they can share so many of these technologies that they have at a fractional cost, you know, whether it's electronic medical records, whether or not it's a packed system for digital uh uh X-rays and other images, whether or not it's a laboratory information system, whether it's those OR integration and other systems, even AI, telemedicine, these things can be shared at fractional cost.
00:15:07.200 --> 00:15:11.600
That extra person on the medical records, that's that's costing nothing.
00:15:11.600 --> 00:15:22.879
That extra person that's you know sitting in a uh laboratory or looking at these images, you know, they don't have to be in the micro hospital where it's located.
00:15:22.879 --> 00:15:27.440
They can be remote and it can function very efficiently in that way.
00:15:29.039 --> 00:15:33.919
I mean, it you know, when you say it, it it makes total sense, right?
00:15:33.919 --> 00:15:43.840
Like we, you know, healthcare systems to to the doctors, like what everybody would want is that affordable, accessible healthcare in a timely manner.
00:15:43.840 --> 00:15:57.600
And, you know, hearing you say it, I I can hear having practice in architecture to being in construction, to working for fabricators, to think even working with healthcare systems, right?
00:15:57.600 --> 00:15:58.480
Healthcare systems.
00:15:58.480 --> 00:16:07.279
So I hear having an area of standardization that makes it easier for the healthcare system to go through and design things.
00:16:07.279 --> 00:16:26.799
And I know there was, you know, I've had an opportunity to work with Kaiser and talk to even HCA and SCA and Dignity or Common Spirits, and like a lot of them wanted to do what you were saying, which was build MOBs to repetitive, sort of, you know, smaller facilities, uh hospitals.
00:16:26.799 --> 00:16:38.720
But they are proprietary in some instances, which doesn't answer the question I think you're you're aiming to solve, doesn't provide it to everybody, because that's there's those are some healthcare systems.
00:16:38.720 --> 00:16:49.360
So while this isn't, you know, new, there are things that are have really changed the way we need to think about healthcare design recently.
00:16:49.360 --> 00:16:58.480
And I always tell the story about uh the Ohio State University building their major tower here in early 2000s, right?
00:16:58.480 --> 00:17:04.160
Well, it took, I I think it was nearly 10 years to go through planning.
00:17:04.160 --> 00:17:11.920
Well, there's one thing that didn't exist when planning started and did when it ended, and that's the iPhone.
00:17:11.920 --> 00:17:29.839
So by the time they got into the building, as you just described, it's like the building was designed to be something else than where the world was by the time it got in, but everything was designed in a way that didn't allow for flexibility or adaptability as things were changing.
00:17:29.839 --> 00:17:30.480
Sure.
00:17:30.640 --> 00:17:32.240
So much changes in the decade.
00:17:32.240 --> 00:17:32.960
It's amazing.
00:17:32.960 --> 00:17:33.599
It's amazing.
00:17:34.079 --> 00:17:34.319
Yeah.
00:17:34.319 --> 00:18:03.039
So what now you're talking about like being able to have these pre-designed kind of uh concepts for the hospitals, you you're changing sort of procurement path and relationships of some of those systems, you know, that that not only probably tied to the building and the building automation systems or other things, but also to how doctors will be performing work inside the building.
00:18:03.039 --> 00:18:11.759
So you're you're beginning to change that entire delivery process through design, procurement, and construction.
00:18:11.759 --> 00:18:17.039
So I'm sure you are, you know, this is a mindset shift.
00:18:17.039 --> 00:18:22.640
So I'm sure you're hearing obstacles to every barrier put up in front of you.
00:18:22.640 --> 00:18:26.559
So I'm just, you know, curious what some of those are that you're hearing.
00:18:26.960 --> 00:18:33.359
Well, yeah, I I think that again, uh there, we're not the proof of concept is already out there.
00:18:33.359 --> 00:18:38.480
In other words, you mentioned one group uh healthcare system, dignity health.
00:18:38.480 --> 00:18:44.960
They they have their own proprietary micro hospital and they've deployed it successfully.
00:18:44.960 --> 00:18:53.039
Um and another one, Baylor Scott, and white, they have uh deployed these proprietary themselves.
00:18:53.039 --> 00:18:56.160
So we're the proof of concept is there.
00:18:56.160 --> 00:19:08.880
What we have to prove to people is that MCP can scale, that we can ramp up uh quickly enough to be building multiple hospitals simultaneously.
00:19:08.880 --> 00:19:13.519
So the issues that we are faced with are really capital issues.
00:19:13.519 --> 00:19:17.440
Uh and this is not my this is not my bailiwick, so to speak.
00:19:17.440 --> 00:19:19.119
Um I'm learning.
00:19:19.119 --> 00:19:25.839
Uh, but access to capital, uh, because each hospital, so a hospital is $32 million.
00:19:25.839 --> 00:19:31.759
Even though we consider that to be a very affordable price, it's still a lot of money, right?
00:19:31.759 --> 00:19:35.440
And the deposits on things, we have great partners.
00:19:35.440 --> 00:19:44.960
Our partners are Phillips and uh Gettinger and Amico from Canada and and other Ida from Ireland and other groups.
00:19:44.960 --> 00:19:51.359
But like any business, they expect us to give them deposits and they give us favorable terms.
00:19:51.359 --> 00:19:57.519
Well, if one can do simple math, it said 15% on seven and a half million dollars.
00:19:57.519 --> 00:19:59.759
Well, that's well over that's 1.1 million.
00:19:59.759 --> 00:20:02.160
Million dollars just in deposits.
00:20:02.160 --> 00:20:05.359
So each hospital needs working capital.
00:20:05.359 --> 00:20:11.839
And our buyers, you know, they expect to buy a hospital as a product.
00:20:11.839 --> 00:20:13.680
And that's fair and reasonable.
00:20:13.680 --> 00:20:22.960
We need to make sure that we can always have enough working capital in order to build multiple hospitals simultaneously.
00:20:22.960 --> 00:20:26.799
So that's been one entry barrier that we've had.
00:20:26.799 --> 00:20:29.279
It's an expensive business.
00:20:29.279 --> 00:20:33.039
And so we're playing with large entities.
00:20:33.039 --> 00:20:44.720
And we kind of say, look at the people that are partnering with us, because they see that we have a really a viable option to change healthcare delivery.
00:20:44.720 --> 00:20:49.279
So they are intended to be simple hospitals.
00:20:49.279 --> 00:20:52.400
In a complex world, it's a simple hospital.
00:20:52.400 --> 00:20:54.640
So that's a barrier.
00:20:54.640 --> 00:21:06.160
You know, getting people to speak with us, you know, um, and getting to the point where we have funding to make sure that people know we exist.
00:21:06.160 --> 00:21:17.119
That's that's why this podcast is so important to me, that it may help people know that modern clinical planning has a solution that's available to them.
00:21:17.119 --> 00:21:26.079
So there are a couple of the entry barriers and the uh challenges that we need to overcome.
00:21:26.400 --> 00:21:34.799
So, Peter, I thanks for sharing that because I think you know, humans we're we're skeptical, we see fear, like we run from it.
00:21:34.799 --> 00:21:44.160
And then a lot of things that you were talking about are very common with new innovation, especially in the construction industry, because of the way we build.
00:21:44.160 --> 00:21:49.519
And when we think about, like you mentioned, capital, it's that cash flow through a project.
00:21:49.519 --> 00:22:18.160
And I think of I think of the part of the industry around prefabrication and you know, as we're shifting into a lot heavier modular construction, um, not just in healthcare, but in housing and everything else, well, the funding structure changes and where the capital has to enter and get to before, you know, you're so far down the line, like that's not new either.
00:22:18.160 --> 00:22:24.319
Um and, you know, just curious, like what other, you know, this is healthcare.
00:22:24.319 --> 00:22:37.680
So I guess one of my questions would then be well, if this solution doesn't happen in some of those rural areas, what is the answer from the healthcare systems to address it?
00:22:38.400 --> 00:22:40.960
Yeah, it's only part of the answer, first off, right?
00:22:40.960 --> 00:22:44.079
There are the staffing issues that we spoke about before.
00:22:44.079 --> 00:22:46.559
That's that's clearly an issue.
00:22:46.559 --> 00:22:50.559
Um we are part of a solution.
00:22:50.559 --> 00:22:55.839
I think that it can only we can make it better.
00:22:55.839 --> 00:23:00.960
Micro hospitals can bring hospital care to people.
00:23:00.960 --> 00:23:07.519
And we look at bring healthcare services to people in their local community, and that can be in a city.
00:23:07.519 --> 00:23:10.640
That can be in an underserved area of the city.
00:23:10.640 --> 00:23:18.079
So, you know, there are a lot of applications, but really we're trying to focus on underserved communities.
00:23:18.079 --> 00:23:19.680
We have to deliver.
00:23:19.680 --> 00:23:23.759
We have to deliver if we want to serve the people of this country.
00:23:24.079 --> 00:23:35.039
Yeah, I mean, it's such an important subject to try to get those solutions to individuals, which always comes back to, like you said, the capital.
00:23:35.039 --> 00:24:00.880
So, you know, I guess it's the barrier seems to be you you brought it up probably more than mindset in this case, the capital, but I think the capital mindset shift is even part of the process here because if the health it getting them to the rural area and the capital has to change where you're they're buying a product, you're the way you're approaching it then, right?
00:24:00.880 --> 00:24:08.480
The healthcare system, describe that a little more just to try to, you know, so listeners as well as myself kind of understand it.
00:24:08.480 --> 00:24:12.160
Is it that they're expecting that you're just getting it done in two years?
00:24:12.160 --> 00:24:28.960
There's some deposits that have to happen, but it's not a normal construction sort of progress pay application, or what makes it more, I guess, unique, a product versus you know, that traditional method of delivering construction?
00:24:29.440 --> 00:24:34.559
So there's a distinction between the buyer, who's not typically an investor, right?
00:24:34.559 --> 00:24:45.839
So the the buyer wants to buy a product and they're not investing in the operational part of it.
00:24:45.839 --> 00:25:01.119
We are the capital issue rests with investment banks, investment uh arms, with community investment resources, where that's where we need to raise that capital.
00:25:01.119 --> 00:25:01.920
Two things.
00:25:01.920 --> 00:25:02.559
Two things.
00:25:02.559 --> 00:25:08.960
One is that a buyer and the problem of rural health in part is that it's not profitable.
00:25:08.960 --> 00:25:10.880
And why is it not profitable?
00:25:10.880 --> 00:25:12.720
There's a whole host of reasons.
00:25:12.720 --> 00:25:25.119
There there are, you know, low numbers of patients going to specialties, and so therefore, there's not enough throughput, and so therefore, it's not profitable.
00:25:25.119 --> 00:25:30.640
Many, many of these hospitals in rural America are older infrastructure.
00:25:30.640 --> 00:25:33.119
It's harder to renovate them.
00:25:33.119 --> 00:25:41.759
It's a good question about whether or not a renovation should take place or if a replacement hospital should be sought.
00:25:41.759 --> 00:25:44.640
We can be that replacement hospital.
00:25:44.640 --> 00:25:50.559
But, you know, it's it comes down to the affordability.
00:25:50.559 --> 00:26:02.960
So we're not going to be able to solve every problem, but we are able to say that we have an affordable, efficient, modern hospital that's available to a community.
00:26:02.960 --> 00:26:14.880
And that may be much better than dealing with that 30 or 40-bed hospital where people have a hard time maintaining occupancy, for example, in the hospital.
00:26:14.880 --> 00:26:25.599
That if you don't have enough patients, they the right scale, you know, it's important to it's not to say it's like a hotel, but a little bit like a hotel.
00:26:25.599 --> 00:26:33.599
You want to keep your occupancy levels high, but you also want to keep your turnover, something that they call the average length of stay.
00:26:33.599 --> 00:26:40.720
You want to have a turnover of your patients so that they're staying, you know, three to four days kind of maximum.
00:26:40.720 --> 00:26:44.079
And and that's how a hospital is profitable.
00:26:44.079 --> 00:26:48.400
If nothing else, a smaller hospital is easier to manage.
00:26:48.400 --> 00:26:55.839
It's obviously easier to manage, and it's easier to maintain patient volume.
00:26:55.839 --> 00:27:05.119
These larger hospitals that are inefficient and older structures, well, they they really buildings, as you know, as an architect, buildings get used up.
00:27:05.119 --> 00:27:07.839
There's times when they're no longer viable.
00:27:07.839 --> 00:27:16.559
Um, and and we see that when we look at major cities and that the demolition industry is almost as big as the construction industry, right?
00:27:16.559 --> 00:27:17.119
Right.
00:27:17.119 --> 00:27:26.559
So there can be a point where that rural hospital really has served its purpose and no longer can.
00:27:26.559 --> 00:27:32.559
And we think that these hospitals that are modern, efficient, and sustainable, right?
00:27:32.559 --> 00:27:35.279
That they become those replacements.
00:27:35.279 --> 00:27:38.160
Rural health has these staffing issues.
00:27:38.160 --> 00:27:45.359
It has the issues of declining populations, but a smaller hospital sits better with those.
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The buyer, the hospital chain, the hospital system.
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