Rising U.S. healthcare provider costs fuel new streamlined medical real estate solutions
- Medical office rents have risen 3.3% since Q2 2024, while physician salaries have climbed 12.2% over the same period, both adding pressure to healthcare operating costs.
- Registered nurse (RN) salaries have seen more flat and stable growth, increasing just 2.1% since Q2 2024, positioning RNs as a more cost-effective alternative for care delivery. According to KaufmanHall’s Q1 2025 Physician Flash Report, advanced practice providers now make up 40% of providers in physician practices.
- These highly skilled clinicians can perform many of the same functions as physicians at a lower cost, contributing to the narrowing gap in the provider landscape as organizations increasingly lean on RNs to balance efficiency with access. Similarly, these cost constraints are likely fueling greater demand for outpatient medical office space and smaller satellite clinics as health systems expand more affordable, community-based care models.
August 28, 2025
