Steady growth has also been seen in a variety of other healthcare REITs including major players like HCP
. There certainly will be a growing need for physical space in which to render patient care and house staff. REITs have been buying a variety of properties including medical offices, professional buildings, hospitals, and large tertiary care facilities. It will be interesting to see how these healthcare real estate deals will be impacted by changes in health economics and policy. A primary concern is the potential impact of lower reimbursements on healthcare entites who occupy these spaces, and whether occupany and lease rates will suffer as a result. REITs who acquire these properties likely have developed strategies to deal with the future rebimbursement uncertainties of their tenants, but the spectre of change still looms. The need for health care entities to devise cost saving strategies and improve revenue centers is ongoing.
Written by Christopher Majdi