GLOBAL HEALTHCARE SERVICES

NEWMARK

BIGGEST TREND IMPACTING HEALTHCARE REAL ESTATE TODAY IN PHOENIX

The Phoenix Open isn’t the only big thing making news. So is healthcare – Here’s what we see trending in healthcare real estate…

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We asked Kathleen Morgan, Director with Newmark Global Healthcare Services, her opinion of what is the biggest trend impacting healthcare real estate today, specifically in the Phoenix market?

The biggest trend impacting healthcare real estate today is the consolidation of practices. Medical practices are being consolidated because they are either being purchased by a hospital, or the practices are joining together. With this trend, the solo practitioner may soon be extinct due to healthcare’s rising costs and reduced insurance reimbursements.

Healthcare real estate is no longer comprised of small, individual practices on a single MOB floor. Rather, a floor now typically consists of a few multi-disciplinary practices that are usually owned by the hospital. The hospital employs the physicians that operate the practices.

With the change, the physicians do not make the real estate decisions; the hospital does. Hospitals require time, metrics, spreadsheets, lawyers, and committee approval for a transaction to close.

Stay tuned for Garth Hogan’s opinion of the question on a national basis.

All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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