What you should know:
1. Access to care and lower reimbursement rates are driving healthcare to the outpatient space, particular to medical office buildings, retail centers and off-campus facilities.
2. A Marcus & Millichap report claims single-tenant medical office buildings are attractive to private and institutional buyers, and that existing affiliated outpatient facilities are selling at a premium with some transactions returning up to 6 percent.
3. Another option for outpatient development is in existing retail space. However, because property owners value these spaces at a premium they often demand hefty redevelopment costs because of competition with other assets.
4. For example, a retail redevelopment that would have cost $65 a square foot years ago, could now be in the $150 range.
5. Despite a burgeoning movement to develop properties closer to consumers, most developers would still develop an outpatient facility on or nearby a hospital’s campus, said John Abuja, senior director at Marcus & Millichap.
“It’s not ‘build it and they will come,’” Abuja said. “They’re already there. That’s why most investors, if they could choose, would still rather be on campus or near campus with a medical office building.”
More articles on surgery centers:
Number of Medicare-certified ASCs per state | 2019
6 hospitals, health systems opening or planning ASCs
Surgery Partners in 2019: 6 points of strategic growth – de novos, payer partnerships & total joints
At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.