ASCs, along with medical office buildings and urgent care centers, have the most positive outlook for investment in the healthcare real estate market, according to coverage of a talk given by Advisory Board Managing Director Fred Bayon in Healthcare Real Estate Insights.
Three things to know:
1. Even though ASCs carry some risk due to their lower profit margins, the growth of procedures moving to the ASC setting gives them good investment prospects.
2. Microhospitals have a "moderate" investment outlook, according to the Advisory Board. Microhospitals that are in the right locations can help health systems expand into new markets.
3. The Advisory Board gave free-standing emergency departments a negative rating due to potential decreases in Medicare reimbursement and unnecessary ED utilization.