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Insights and Trends

The Power of Co-Location: Maximizing Hospital Outcomes Through Integrated Service Lines

As we move through 2026, the medical complexity of the average U.S. patient has reached a new peak.* With an aging population and an increasing number of patients with co-morbidities, healthcare providers must be more agile than ever.

In today’s landscape, flexibility is no longer a luxury; it is a core operational necessity. Health systems are facing a rapid evolution in patient expectations, shifting reimbursement models toward value-based care, and the urgent need to integrate artificial intelligence (AI) and other digital health tools into physical spaces.

To stay competitive in 2026, healthcare leaders are moving away from rigid, siloed facility designs. Instead, they are prioritizing flexible infrastructure that can adapt to changing service line demands. Whether it’s transitioning bed capacity between acute and post-acute care or reconfiguring spaces for specialized rehabilitation or behavioral health needs, nimbleness must be integrated into both short-term operations and long-term strategic planning.

The Power of Co-Location

One of the most effective ways to achieve this agility is through the co-location of multiple service lines on a single campus. By bringing together acute care, rehabilitation and behavioral health, hospitals can:
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      • Optimize patient transitions by helping to ensure seamless transitions between levels of care as patient acuity changes.
      • Maximize resource efficiency through shared resources such as staffing, technology and administrative overhead across diverse departments.
      • Enhance clinical outcomes by providing a holistic environment that treats the "whole patient" in one centralized location.

View this infographic to discover how co-locating service lines can help your hospital improve patient outcomes and secure long-term financial stability.


References:

  • American Hospital Association. (2025, December). 2026 environmental scan. https://www.aha.org/system/files/media/file/2025/12/Environmental-Scan-2026.pdf