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The Phoenix Open isn’t the only big thing making news. So is healthcare – Here’s what we see trending in healthcare real estate…
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.
Posted on 03/29/2013 at 12:00 AM
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