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ACA Impact on Medical Office Real Estate: Buy or Lease?

South Florida Hospital News | By: Kenneth A. Weston

The passage of the Affordable Care Act (ACA) will have a major effect on the medical real estate market. This is a result of the large number of baby boomers in South Florida and the number of uninsured and underinsured people who will soon have medical insurance. The ACA will create a higher demand on future healthcare services. We have found an increasing demand for medial office space as hospitals and other healthcare providers continue their expansions into healthcare facilities. These outpatient facilities are being planned or developed both on on-campus and off-campus locations. We have also encountered an increased demand for physician offices, urgent care centers, ambulatory surgical centers, diagnostic centers and specialty treatment centers.

There is also a growing trend towards hospital owned physician groups. In some cases, hospitals are leaving the physicians in their current location, and in other cases hospitals are building or acquiring medical office buildings and relocating the newly hired doctor groups into those buildings. Family practice groups and internal medicine groups are better served being out in the community and not on campus.

Hospitals have already began staking their claim in their geographic areas by either purchasing land or buildings and putting their brand on these locations.

Getting advice from professionals (accountants, lawyers, and commercial real estate brokers) who specialize in healthcare can significantly improve the accuracy of the analysis. Having a helping hand from these experts will assure that you make the best decision.

Physicians who have taken “a wait and see” attitude over the past few years have decided to move forward with their plans. We have seen an increase in both the purchase and lease of medical properties by physicians during the last three months.


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