Blog and News

Article Commentary by: Garth Hogan, Global Healthcare Services

Year over year, we are seeing record-breaking M&A activity in 2017 and it’s expected to increase in 2018 as the healthcare industry moves forward with consolidations.

Article Written by: Ayla Ellison, Becker's Hospital Review, January 8, 2018

From major nonprofit health systems coming together for market power and population health to health insurance companies seeking growth in other business areas, 2017 was an exciting year for mergers and acquisitions in the healthcare industry...

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Photo: AP
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During a recent visit to Whitefish, Montana, Global Healthcare Services Co-Leader and Executive Managing Director Garth Hogan came across one of the last buildings designed by the late legend. Mr. Wright designed the Lockridge Medical Center in Whitefish in 1958 but passed away before it was completed. According to Northwest Montana Historical Society Executive Director Gil Jordan, the building was designed to feel like a comfortable home and not a doctor’s office. The 5,000-square-foot building has a large fireplace that is a focal point of the interior. Unfortunately, the building has reached it’s useful life and will be torn down to create a two-story retail and mixed office use.

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Article Commentary by: Garth Hogan, Global Healthcare Services

What was announced late last year should be completed in 2018. We expect that there are more announcements to come that will continue to reshape the delivery of healthcare in the US. Becker's is on track with the four existing standouts:

1. Beth Israel Deaconess and Lahey Health

2. Dignity Health and Catholic Healthcare Initiatives

3. Partners HealthCare and Care New England Health System

4. Providence St. Joseph Health and Ascension

Article Written by: Alyssa Rege, Becker's Hospital Review, January 9, 2018

Hospital merger and acquisition activity has steadily risen in recent years — and 2017 was no different. However, last-minute transactions announced in November and Decemb...

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Article Commentary by: Garth Hogan, Global Healthcare Services

While households and corporations will feel a relief in annual tax burden, there will be a direct impact on yield requirements for tax exempt bonds.

Article Written by: HFA Partners, December 19, 2017

The reduction in corporate income tax rates is expected to increase tax exempt yields for hospitals, and could reshape the market for bank direct placements and public bond offerings, particularly for lower rated borrowers...

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53 medical office building transactions closed in the month of November 2017 totaling over $548 million or 2.2 million square feet. California had the most medical office building transactions with 14 (26% of total), followed by Florida with 11 (21% of total). The average deal size was $12 million and HRT’s $112.1 million acquisition of four medical office buildings in Georgia represented the largest medical office transaction for the month. HRT was also the most active buyer with this acquisition.

(Source - Real Capital Analytics, Inc.)

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4 physician groups and 13 hospitals were acquired in December 2017. The largest hospital acquired was Aurora Health Care, a 2,019 bed hospital in Milwaukee, Wisconsin which was acquired by Advocate Health Care. The largest physician group acquired was Dermatology Alliance in Texas with 3 physicians and was acquired by Epiphany Dermatology. 2017 M&A transactions for Hospitals and Medical Physician Groups finished on a similar pace as 2016 (220 Total Transactions in 2017 vs 219 Total Transactions in 2016).


(Source: Irving Levin Associates, Newmark Knight Frank)

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The Global Healthcare Services team made a brilliant choice in hitching our wagon to Newmark Knight Frank 6 years ago.

Newmark Rings the Nasdaq Opening Bell

Newmark, a high-margin, full-service commercial real estate services business, rings the Nasdaq Opening Bell in honor of its IPO. Video courtesy of Nasdaq

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We are excited to release the 2017 Tri-State Healthcare Real Estate Outlook. Please click here to download the report.

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Newmark Knight Frank - Global Healthcare Services (GHS) Co-Leader and Executive Managing Director, Garth Hogan, continues to advance through Europe. He recently toured French healthcare facilities with Vincent Bollaert, Head of Capital Markets France, and David Bourla, Chief Economist, based in the Knight Frank Paris office. David put together an overview of the current state of healthcare in France which, in summary, shows a dramatic increase in healthcare spending as well as a sharp increase in investment demand, which has nearly doubled in 2017 from 2016.

Healthcare Spending:

Besides financial services, healthcare is one of the biggest sectors in global economy. Healthcare spending is forecast to nearly double (5.5% CAGR 2012-22) from...

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Article commentary by: Garth Hogan, Global Healthcare Services

The recently announced $69B CVS-Aetna deal is another great example of two companies wanting to create community healthcare hubs around the country for patients. This deal would provide a sort of one-stop shop similar to urgent care centers, but with a lot more services.

Right now, CVS has a little over 1,100 walk-in clinics within CVS facilities. Their footprint will likely start to increase.

The need for this change is driven by the demand for accessibility and convenience to patients who need care in all service areas, not just urban settings with ease of transportation. With a broader access point, providers will be able to discover, prevent and treat potential chronic illne...

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