A Diagnostic View of Healthcare
Physician employment by hospitals is on the rise, as physicians face decreasing reimbursements and seek more secure income flow. Hospitals, seeking realignment to ensure greater patient volume, are demanding that practice acquisitions have incentive structures in place. MOB owners may be affected as once independent physician practice tenants may in the future become a hospital tenant. Though on its surface that seems like a benefit, a hospital CFO will evaluate his costs to borrow vs. lease and could potentially move those physicians out of investor owned buildings at lease expiration into one financed with low-cost debt.
Construction on hospital campuses has been steadily rising throughout the decade. Aging and obsolete facilities; operational efficiencies; advanced treatment methods and technologies; consumer demands for convenience and private rooms; and an aging Baby Boomer population are driving this trend.
The construction boom is being tempered by ever-increasing financial constraints, and as consumers bear a greater burden of the cost to receive healthcare services, they are exploring medical tourism and will have a greater say in the direction of healthcare delivery
Contact Richard Smith, CCIM for additional information including full market research studies, demographics, available spaces, lease rates, operating expenses, investment analysis, sales comparables and tenant rosters of medical office buildings in Atlanta and across the Southeast Region. We work with health care professionals evaluating real estate options. Good health in 2009.
Source: BOMA Healthcare Conference.
