ASC real estate investment outlook strong

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.

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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.

More articles on transactions and valuation:
Outlook on ASC consolidation + 3 things to prepare for in the future
Ohio hospital moving outpatient, general surgery services to one location
Investor buys Sonoran Desert Surgery Center — 3 insights

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