How To Choose The Right Location For Your Medical Facility

Deciding where to open a medical facility is a critical decision. Location plays an integral role in determining the success of any healthcare organization, so it’s important to choose carefully. From evaluating local demographics and economic conditions to considering legal requirements and zoning regulations, there are many factors to consider when choosing the right location for your medical facility. In this blog post, we’ll explore each of these key components, discuss how they may affect your business venture, and provide you with some helpful tips on making sure that you select the perfect place for your medical practice or clinic. Keep reading to learn more!

According to a report on clinical works from The Associated Press-NORC Center for Public Affairs Research, 50% of patients take into account the location of medical practice when deciding which doctor to choose. Similarly, another report shows that 70% of healthcare consumers consider the location to be either very important or critical when selecting a healthcare provider or health system.

Key Takeaways

  • A thorough understanding of the local health needs, demographics, and market conditions is critical to choosing the right location for a medical facility. The chosen location should align with the demand for healthcare services in the community, the age and socioeconomic status of the population, prevalent health conditions, and competition among existing healthcare providers.
  • The location should offer good accessibility for patients and staff, factoring in transportation options, ease of driving and parking, and distance from residential and work areas. Additionally, the proximity to other medical facilities can have implications for collaboration, referrals, and competition.
  • The financial implications of the location, including purchase or lease costs, renovation expenses, operational costs, and potential revenues, need careful consideration. Legal factors, including zoning laws and health and safety regulations, must be adhered to when selecting a location.
How To Choose The Right Location For Your Medical Facility

Understanding the Basics

A medical facility is an establishment where medical services are provided to people in need. This may encompass a broad array of healthcare establishments including hospitals, outpatient clinics, emergency care centers, rehabilitation centers, mental health clinics, specialized diagnostic centers, urgent care facilities, and even mobile medical units. For instance, a hospital, arguably the most comprehensive type of medical facility, typically offers a wide range of services from routine check-ups and outpatient treatments to complex surgeries and long-term patient care.

The term medical facility can also refer to smaller establishments such as your own office space or private practice office space where individual healthcare professionals like doctors, nurses, dentists, physiotherapists, or optometrists provide specialized services. Additionally, it may include establishments like research facilities or medical labs that contribute to healthcare indirectly through research and diagnostic services.

Consider, for example, a rural health clinic space. This medical facility might be the only source of healthcare for the surrounding community, offering essential services such as preventive care, chronic disease management, maternity care, and emergency treatments. On the other end of the spectrum, a major metropolitan hospital might be a state-of-the-art medical facility with dedicated centers for cardiac care, neurology, oncology, and trauma services, catering to a large and diverse population.

The importance of location in healthcare service delivery

The Importance of Location in Healthcare Service Delivery

The practice location of a medical facility plays a pivotal role in the accessibility, efficiency, and overall success of healthcare delivery. It is one of the key factors in strategic planning and decision-making when setting up a healthcare service.

Proximity to the intended service population is a fundamental consideration. For instance, a medical facility located in a densely populated urban area can potentially serve a larger number of patients compared to a similar facility in a remote, rural area. However, if the population in the rural area has limited access to healthcare services, setting up a facility there can have a significant positive impact on the community’s health.

The location also affects the ability of a medical facility to attract and retain qualified healthcare professionals. For example, facilities in urban or suburban locations may have better access to skilled workforces compared to those in rural areas. However, rural facilities might offer other incentives, such as a slower pace of life or a close-knit community, which can be appealing to some professionals.

It can also influence a medical facility’s operational costs. Factors like real estate prices, taxes, utility costs, and transportation accessibility can significantly vary from one location to another, and these differences can have a profound impact on the facility’s sustainability and profitability.

Furthermore, the location can also impact the scope and nature of services provided. A medical facility in a location with a high incidence of a particular health condition, such as cardiovascular disease or diabetes, may need to emphasize those services and treatments. In contrast, a location with a large elderly population might require a facility to focus more on geriatric care.

To illustrate, consider a hospital built near a major highway or in a high-crime area. It will likely need a robust emergency department to handle car accident victims or trauma cases. Similarly, a healthcare facility near an industrial zone might need to focus on occupational health services due to a higher likelihood of workplace-related injuries or illnesses.

In summary, choosing the ideal location for a medical facility is a complex process that involves a thoughtful assessment of various aspects. These include the local demographics, transportation convenience, available workforce, operational expenses, and healthcare needs unique to the region.

Key Factors to Consider When Choosing a Location

Accessibility for Patients

Accessibility for patients is a crucial factor to consider when choosing a location for a medical facility. Accessibility refers to both the geographic distance that patients have to travel to reach the facility and the ease with which they can do so. This involves considerations such as the availability and convenience of public transportation, the ease of driving and parking, and the facility’s proximity to the homes and workplaces of potential patients. A medical facility that is difficult to reach could discourage patients, particularly those with mobility issues, from seeking care.

For instance, if a medical facility is located in a congested urban area with limited parking, patients may find it challenging to visit, especially those who are elderly or disabled. Alternatively, a facility in a rural or remote area may be far from patients’ homes, requiring them to travel long distances. In such cases, the provision of transport services, telemedicine services, or outreach programs may be necessary to ensure healthcare accessibility.

Proximity to Other Medical Facilities

Proximity to other medical facilities can significantly affect a new medical facility’s success and range of services. Being close to other medical facilities, such as hospitals, clinics, pharmacies, and specialized healthcare centers, can enable collaborations and referrals, creating a healthcare ecosystem that serves patients more effectively.

However, if the nearby facilities offer similar services, it may lead to competition, which could potentially limit the patient base.

For example, locating a new urgent care center next to an existing emergency department might not be the best choice, as they may end up competing for the same patients.

On the other hand, placing a specialized diabetes care center in the vicinity of a large hospital can be beneficial, allowing easy referral of patients needing specialized care and providing the center with a steady stream of potential patients.

Local Demographics and Health Needs

Understanding the local demographics and health needs of the community is critical when choosing a location for a medical facility. This involves researching the age distribution, socioeconomic status, prevalent health conditions, and overall health behaviors of the population in the prospective area.

For example, a community with a high percentage of elderly individuals may benefit more from a facility that focuses on geriatric care, dealing with conditions such as dementia, arthritis, and cardiovascular diseases. In contrast, a location with a significant number of families might necessitate a facility that offers pediatric and maternity services.

Physical Size and Future Growth Possibility

The physical size of the property and the possibility of future expansion is other key factor to consider. The facility should be large enough to accommodate the necessary medical equipment, patient care areas, administrative spaces, traffic patterns, and parking. Additionally, there should ideally be room for growth to accommodate future expansions or additions of services, as the community’s needs change over time.

For instance, if the medical facility is a small clinic intending to eventually grow into a full-fledged hospital, it should ideally be situated on a property that allows for such expansion. If growth possibilities are limited due to space constraints, it might become necessary in the future to relocate the entire facility, which can be a significant financial and operational burden.

Legal and Zoning Considerations

Lastly, legal and zoning considerations are essential factors to consider when choosing the best location for a medical facility. The proposed site must comply with local zoning laws, which can dictate what types of buildings and services can exist in specific areas. Additionally, there may be health and safety regulations, building codes, and environmental considerations that must be adhered to.

For example, a location in a residential zone may not allow for the construction of certain types of medical facilities, or there may be restrictions on operating hours, noise levels, or waste disposal methods. Therefore, it is important to conduct a thorough legal review and obtain any necessary permits before finalizing the location for a medical facility.

To sum up, the choice of location for a medical facility is a strategic decision that can have far-reaching implications on the accessibility and quality of healthcare services provided. It is a multifaceted decision that requires careful consideration of numerous factors including accessibility for patients, proximity to other medical facilities, local demographics and health needs, physical size and future growth possibility, and legal and zoning considerations.

Steps to Choose the Right Location

Conducting a Thorough Market Analysis

The first step in choosing the right location for your medical facility is to conduct a thorough market analysis. This involves researching the area’s demographics, including factors like age, income, and health needs, to understand the potential demand for your services. It also includes investigating the competition, such as other medical facilities in the area, their range of services, and their reputation.

Furthermore, the market analysis should consider macroeconomic trends, such as population growth, urban development plans, and changes in healthcare policies, that could influence future demand.

For example, if your research indicates that a particular area has a large elderly population with limited access to specialized geriatric care, there may be a strong market for a medical facility focused on these services. Conversely, if you find that an area already has numerous well-regarded hospitals and clinics, it may be challenging to establish a new medical facility there due to intense competition.

Assessing Potential Locations

Once you have a clear understanding of the market, the next step is to assess potential locations. This requires site visits to understand factors such as the accessibility of the location for patients and staff, proximity to other medical facilities, and the physical size and condition of the premises. Additionally, it involves reviewing local zoning laws and regulations to ensure that a medical facility is permissible at the location.

For instance, if a location is easily accessible by public transport, close to major residential areas, and compliant with zoning laws, it may be a suitable location for your medical facility. However, if the premises are small or in poor condition, significant renovation or expansion might be necessary, which could entail additional costs and time.

Evaluating Financial Implications

The third step is evaluating the financial implications of each potential location. This involves calculating the total cost, including the purchase or lease price, renovation or construction costs, maintenance costs, and taxes. Additionally, it requires an assessment of the financial sustainability of the facility, which could include projected patient revenues, potential funding or grants, and operational costs such as staffing, utilities, and medical supplies.

As an example, a centrally located property in a bustling city might attract a high volume of patients, but it might also come with high real estate costs and competition. Alternatively, a location in a suburban or rural area might have lower costs and less competition, but it might also have fewer potential patients and possibly higher transportation costs.

Making the Final Decision

Finally, after conducting a thorough market analysis, assessing potential locations, and evaluating financial implications, it is time to make the final decision. This decision should be based on careful consideration of all the gathered information and should ideally involve consultation with stakeholders such as partners, investors, healthcare professionals, and potentially even representatives from the community.

For example, if one location stands out as being financially sustainable, well-situated to meet a clear healthcare demand, and well-supported by the market analysis, it would likely be a good choice for your medical facility. However, if the decision is not clear-cut, it may be beneficial to gather more data, reassess your plans, or seek expert advice before committing to a location.

To sum up, choosing the right location for a medical facility is a complex, multi-step process that requires thorough research, careful consideration of various factors, and wise decision-making. This process, while potentially time-consuming and challenging, is essential to establishing a successful and impactful medical facility.

Consider a look at this informative article I authored. In it, I discuss thirteen expert tips to keep in mind when trying to select the ideal location for your medical office. Believe me, reading this article will aid you in determining how to pick the perfect spot for your medical facility and ensure that you make the most informed decisions.

Case Studies of Successful Medical Facility Locations

Mayo Clinic, Rochester, Minnesota, USA

Mayo Clinic, established in 1889 in Rochester, Minnesota, has grown into one of the world’s leading healthcare facilities. The decision to set up the facility in Rochester was influenced by the founders’ ties to the community and the town’s strategic location along multiple railway lines, which provided accessibility for patients even in the late 19th century. The success of the Mayo Clinic highlights the importance of accessibility and community connection in selecting a medical facility’s location.

Over the years, Mayo Clinic has embraced growth and innovation while still focusing on its primary value — “The needs of the patient come first.” Despite its location in a relatively small city, Mayo Clinic has been able to attract patients and medical professionals from around the world due to its reputation for excellence, commitment to innovative research and patient care, and collaborative, multidisciplinary approach. Today, Mayo Clinic is an integrated, worldwide network with facilities in several states in the U.S. and affiliations around the globe.

MedStar Georgetown University Hospital, Washington D.C., USA

MedStar Georgetown University Hospital is an excellent example of a successful medical facility that leverages its location within an urban environment and proximity to a leading educational institution. Located in Washington D.C., it not only serves the diverse and populous community of the nation’s capital but also draws on the academic resources of Georgetown University, fostering a culture of research, learning, and innovation.

Its central location offers high accessibility, making it a convenient choice for patients in the D.C. area. Its association with a prestigious university and its place within the larger MedStar health system are also beneficial in attracting highly skilled healthcare professionals.

Apollo Hospitals, Chennai, India

Apollo Hospitals, established in 1983 in Chennai, India, was the country’s first corporate hospital. The decision to establish the hospital in Chennai was based on an extensive understanding of the local healthcare landscape and the significant healthcare needs of the rapidly urbanizing population. The hospital’s location in a major metropolitan city ensured a large base of potential patients and access to a skilled workforce.

Apollo Hospitals, Chennai, has been a trendsetter in advanced healthcare in the region, being the first in India to perform numerous groundbreaking procedures. Its strategic location, along with a commitment to providing world-class healthcare services, has helped it grow into one of Asia’s most respected healthcare facilities.

These case studies underscore the importance of strategic location choice in the success of a medical facility. Factors such as accessibility, connection to the community, potential for collaboration, understanding of local healthcare needs, and availability of a skilled workforce have all played crucial roles in the successful establishment and growth of these facilities.

How To Choose The Right Location For Your Medical Facility

How To Choose The Right Location For Your Medical Facility FAQs

How does the size of the location impact the choice?

The size of the location can be an important factor when choosing a medical facility’s location. If the premises are small or in poor condition, significant renovation or expansion may be necessary, which could entail additional costs and time. Therefore, it is important to consider both the current size of the potential location and any potential for growth and expansion before making a decision.

What are the legal considerations when choosing a location?

Before choosing a location for a medical facility, it is important to review local zoning laws and regulations to ensure that the facility is permissible at the chosen location. Additionally, any necessary permits or licenses should be acquired before establishing the facility to avoid potential legal issues.

How do I conduct a market analysis for a medical facility location?

When conducting a market analysis for a medical facility location, it is important to consider factors such as the population size and demographics, economic trends, healthcare needs and preferences of the area, competition from existing facilities, and accessibility. Additionally, an assessment of local zoning laws and regulations should be conducted to ensure that the facility is permissible at the chosen location.

How do I assess potential locations for a medical facility?

When assessing potential locations for a medical facility, it is important to consider factors such as accessibility, size, and condition of the premises, financial sustainability, and community support. Additionally, any necessary permits or licenses should be acquired before establishing the facility to avoid potential legal issues.

How do financial implications affect the choice of location?

When choosing a location for a medical facility, financial implications must be taken into account. This includes calculating the total cost of the location, including purchase or lease price, renovation or construction costs, maintenance expenses, and taxes. Additionally, it is important to assess the potential revenue generated from patients as well as any potential funding sources that could help sustain operations.


All in all, choosing the right location for your medical facility requires careful consideration of many factors. It is important to have a comprehensive understanding of local medical facility, local health needs, demographics, and market conditions when making such a decision. For those in search of medical real estate solutions, it pays to work with experienced professionals who can guide you through the process and help you make the best decision.

My experience as a real estate professional means I am well suited to help you determine the right location for your medical facility and build successful outcomes for both sides. If you are selecting selecting location for medical practice location for your medical facility, do not hesitate to call or schedule a free consultation with me today. You invest time into researching the perfect place – let me take that weight off your shoulders and leave you with absolute confidence in your choice.

Blog Articles Disclaimer

The information presented in articles on our website or affiliated platforms is exclusively intended for informational purposes. It’s crucial to grasp that this content does not constitute professional advice or services. We strongly recommend our readers to seek guidance from appropriately qualified experts, including, but not limited to, real estate and other attorneys, accountants, financial planners, bankers, mortgage professionals, architects, government officials, engineers, and related professionals. These experts can offer personalized counsel tailored to the specific nuances of your individual circumstances. Relying on the content without consulting the relevant experts may hinder informed decision-making. Consequently, neither Tolj Commercial Real Estate nor its agents assume any responsibility for potential consequences that may arise from such action.

Similar Posts