Why systems are choosing to “start small” and how strategic engineering makes it work.
Healthcare systems across the country are rethinking how they enter new communities. Instead of leading with a full acute‑care hospital, many owners are taking a phased approach: establishing a foothold with a freestanding emergency department (ED), ambulatory surgery center (ASC), or medical office building (MOB) and growing the campus as demand develops.
Although this strategy isn’t entirely new, it has become increasingly common over the last five to seven years as systems navigate funding constraints, certificate‑of‑need (CON) regulations, and the urgency to capture market share in competitive or fast‑growing regions.
At SSR, our teams are deeply involved in helping owners plan and execute this phased growth approach. Here’s what we’re seeing and how thoughtful planning sets these campuses up for long‑term success.
In markets like metro Atlanta, CON requirements often push systems toward more attainable first steps. MOBs typically require no CON approval; ASCs require less regulatory friction than a hospital; and freestanding EDs offer strong revenue potential relative to their size. In states where CONs are sunsetting — like South Carolina — we’re seeing an influx of small-footprint facilities as systems move quickly to establish presence.
In Florida, the state administration code outlines what projects require AHCA (Florida Agency for Health Care Administration) review. To name a few, free standing emergency departments, hospitals, and ASC’s all typically fall under AHCA authority. AHCA acts as an AHJ that enforces regulations beyond those outlined within the Florida building code, requires project reviews by phase, and requires the scheduling of additional surveys during construction. This can quickly drive project costs, impact construction schedules, and adds additional levels of coordination that do not exist for projects classified under business occupancy.
Remote or standalone access points help systems “claim” a community, especially in competitive metros where two healthcare brands sit across the street from each other. Freestanding EDs and urgent care centers act as the entry point into a system. Once a patient is in-network, continuity of care — and insurance alignment — tend to keep them there. In Florida, while AHCA adds layers of complexity for healthcare projects, owners are finding building smaller stand-alone facilities take less time to design and construct therefore are more efficient at capturing the need of the rapidly growing population.
Building a full hospital is a massive capital investment. A phased approach allows owners to generate revenue early, demonstrate demand, and de‑risk the larger project. It also gives them an exit strategy: if the location underperforms, the system can repurpose or dispose of unused acreage with minimal loss.
A phased campus strategy only works when the early decisions intentionally support what’s coming 5, 10, or 15 years later. That’s where our teams deliver some of the biggest value.
Before an ED or MOB goes up, we help owners develop a comprehensive master plan that answers big‑picture questions like:
These decisions influence everything from utility infrastructure to building placement to long-term campus logistics.
Chilled water systems, central plants, and future tie‑ins require long-range thinking. For example:
Our Building Optimization and Sustainability team frequently supports this stage with energy modeling, payback analyses, and scenario planning so owners understand how today’s choices affect tomorrow’s operations.
We’ve also seen what happens when long-term planning isn’t part of the strategy. For example, MOBs initially built under one occupancy classification but later connected to inpatient functions can raise compliance issues and trigger costly fixes. Starting with the full build‑out vision helps avoid those missteps.
Across projects we’ve consulted on, the answer is largely yes — when the strategy aligns with the market.
In fast‑growing suburban or exurban environments, most freestanding ED or ASC sites do progress to full hospitals. In more rural locations, expansion may take longer, or the initial facility may be all the community needs for now. In many cases, projects simply evolve on a longer timeline, adjusting to population growth, service demand, and financial readiness rather than moving forward immediately. What’s consistent is that systems appreciate the flexibility: the ability to establish a presence now and scale when the data supports it.
One of our strengths is staying with clients from the first concept through future phases — sometimes years later — because we understand the original intent, the infrastructure strategy, and the long-term vision. Our teams help owners:
This continuity creates smoother transitions, better‑coordinated growth, and ultimately more efficient and resilient campuses.
The shift toward phased campus development isn’t simply a trend — it’s a strategic response to today’s healthcare and economic realities. When done thoughtfully, it allows systems to enter new markets confidently, manage capital responsibly, and build campuses that grow in step with their communities.
SSR is committed to working alongside owners as they build the facilities their communities need today, while planning intentionally for the future they hope to create.