Real Estate Ownership: Creating a New Revenue Stream

At the 20th Annual Ambulatory Surgery Centers Conference on Oct. 25, Pedro Vergne, CEO of PCI | HealthDev, shared thoughts on how to gain income diversification and monetization of assets through real estate ownership.

In the current healthcare environment, physicians and providers are experiencing a decrease in reimbursement, a lack of new physicians and a struggle to recruit in general. Many are wondering how to increase their revenue stream in the era of healthcare reform.

Mr. Vergne discussed how partnering with a medical real estate solutions company can serve as a vehicle for creating an additional source of revenue. "A partnership with a MRESC will mitigate legal and economic risk for prospective owners," he said. The real estate solutions company will assume all feasibility and soft costs, while providing prospective owners with the properly sized surgery center or medical office building. Those that seek to handle a project on their own often find over building to be an issue.

The benefits of real estate ownership, the diversification of income, allow physicians to focus on patient care. A MRESC will often remain with physicians after the initial project is completed to provide support for a minimal fee.

There are two different ownership models to consider: wholly owned or fractional ownership. A fractional model allows ownership of the surgery center or medical office building to be broken into units. "This provides liquidity. Physicians can cash out by selling fractional units to existing or new physicians," said Mr. Vergne. Liquidity offers physicians a steady flow of cash after retirement.

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