Have you noticed an increase in medical office buildings in your neighborhood lately? This growing trend is part of a more significant shift across the U.S. healthcare landscape, where healthcare satellite offices are becoming more popular.
So, what are these satellite offices? Well, to put it simply, they are decentralized facilities that extend medical services beyond traditional hospital settings. These healthcare satellite offices provide various functions, such as urgent care centers, specialty clinics, general practitioner offices, and outpatient surgery centers. These offices are designed to make healthcare more accessible, convenient, and affordable for patients by bringing services closer to home.
In this article, we will look at why satellite offices have become more prevalent, and their benefits and challenges.
Key Drivers Behind the Growth of Healthcare Satellite Offices
- Growth of Healthcare Satellite Connectivity
One of the primary factors fueling the expansion of satellite offices is satellite connectivity. Healthcare satellite connectivity refers to the use of satellite communication networks which enhances communication and enables healthcare providers to offer telemedicine, remote patient monitoring, and other essential services in areas where conventional broadband connections are unavailable or unreliable.
In a report from Grand View Research, it states that,” The shift towards healthcare satellite connectivity is brought by rise in chronic diseases, critical healthcare conditions such as COVID-19 pandemic, growing need for emergency virtual medical assistance, and the need to curb epidemics in remote areas.”
In the report they estimate that, “the healthcare satellite connectivity market is expected to grow at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2030.”
- Advances in Medical Procedures and Outpatient Care
The flow of care shifting from inpatient visits at hospitals to lower-cost settings of satellite sites is made possible by advances in medical knowledge and technology. These advancements are allowing a greater number of medical procedures to be conducted in outpatient settings, such as surgical centers, and physician offices. This trend highlights the rise in less-invasive procedures made possible by improved technologies.
CBRE put together a 2025 Outlook on Healthcare Real Estate which dives into the shift for satellite sites specifically medical outpatient buildings and in it states, “59 medical procedures were added to the Ambulatory Surgical Centers’ payable list by the Centers for Medicare & Medicaid Services between 2018 and 2023.”
- Significant Cost Savings for Providers and Patients
Healthcare satellite offices provide cost savings. CBRE’s outlook says “…consumers can save 59% on average by having a procedure completed in an ambulatory surgical center versus a hospital. For doctors, higher facility fees charged by hospitals can make performing procedures in an outpatient setting more desirable.”
For providers, satellite offices offer lower facility fees, making them an attractive option for independent practitioners who want to deliver care without the overhead of large hospital facilities. It’s a win-win for both sides, making healthcare more affordable and accessible.
- Alleviating Overcrowding in Hospitals
Hospitals and emergency departments are overcrowded, and the demand for outpatient services is growing. Satellite offices help reduce patient congestion in emergency rooms by providing routine care, diagnostics, and preventive services in more accessible locations.
This shift to outpatient care is:
- Reducing hospital re-admissions
- Improving patient safety
- Allowing for more efficient use of healthcare resources
As a result, healthcare leaders are investing more in satellite offices to help relieve pressure on larger facilities and meet the growing demand for urgent care and specialty services.
- Growth in Healthcare Real Estate
The trend toward satellite offices is also evident in the real estate sector. According to CBRE, 80% of new outpatient medical facilities are being developed away from hospital campuses, often in residential and retail areas. This makes healthcare services more convenient for patients by putting them closer to where they live and work.
A VidTech report highlights that “healthcare-focused real estate investment trusts (REITs) are prioritizing medical office properties due to their stability, long-term lease structures, and high occupancy rates.” As a result, healthcare infrastructure investment is accelerating, reinforcing the expansion of satellite clinics in urban and suburban areas, particularly in North America.
Benefits for the Growth of Healthcare Satellite Offices
Enhanced Patient Accessibility
Due to the growth in connectivity the ability to place healthcare offices closer to neighborhoods while providing high quality medical care is making it easier for patients to access the care they need. Plus, with advancements in medical technology these satellite offices are able to provide a greater array of medical procedures.
Satellite offices are especially important in underserved rural areas, where access to healthcare can be more limited. This improved accessibility ensures that more people can receive quality care, regardless of where they live.
Operational Efficiency
Satellite offices are also a more cost-effective solution for healthcare providers. By shifting some of the patient traffic from large hospitals to smaller outpatient centers, healthcare systems can reduce costs and improve efficiency. These facilities typically have lower operating costs than full-scale hospitals, allowing providers to allocate resources more effectively.
Challenges for the Growth of Healthcare Satellite Offices
Maintaining Overhead Costs Across Multiple Locations
The growth of healthcare satellite offices presents several challenges, particularly when it comes to managing overhead costs across multiple locations. Maintaining operational efficiency, resource allocation, and facility upkeep can strain budgets, while equipment maintenance becomes increasingly complex. Balancing these factors is essential for controlling costs while ensuring consistent, high-quality care across all locations.
- Operational Efficiency: Managing staffing, training, and day-to-day operations across various locations can result in inefficiencies that drive up costs.
- Resource Allocation: Ensuring optimal use of shared services and technology platforms across locations can be difficult, leading to wasted resources and increased overhead.
- Facility Maintenance: Regular upkeep of HVAC systems and cleaning standards in multiple facilities can be expensive, requiring streamlined solutions to control costs.
- Equipment Maintenance: Managing and maintaining medical equipment across various offices requires efficient scheduling and predictive maintenance to avoid costly repairs and replacements.
Ensuring efficient systems in satellite offices can help reduce these costs while maintaining a positive patient experience.
Labor Shortage and Workforce Distribution
Increasing demand for outpatient services, specialty medical practices and home care services continues to drive healthcare employment needs to ensure enough healthcare professionals to meet demand.
The 2023 strike of healthcare workers for low pay and short staffing highlights this potential concern. The American Hospital Association predicts a shortage of 100,000 critical health care workers by 2028.
Conclusion
Healthcare satellite offices are rapidly becoming a cornerstone of the healthcare system, offering greater accessibility, reduced costs, and improved care delivery. As healthcare continues to shift toward outpatient services and technological advancements make healthcare more efficient, satellite offices will play an even more significant role in the future of care.
The integration of satellite connectivity and a growing real estate investment trend ensures that these decentralized offices will continue to thrive. By improving access to healthcare and reducing the burden on larger hospitals, satellite offices are transforming how we think about healthcare delivery—and making it easier for everyone to receive the care they need, when and where they need it.
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