Originally Published: September 18, 2013 12:05 PMModified: September 18, 2013 2:42 PM <\/p>\n
As health care reforms continue to change how the industry operates, many health systems are also taking a fresh look at how they manage their facilities. <\/p>\n
During that re-evaluation, health systems are increasingly asking the question: Do we need to tie up our capital in buildings and infrastructure, or can it be put to better use in other areas of our operations? <\/p>\n
The answer, at least as evidenced by recent activity in West Michigan, is that systems seem to be opting for sale-leaseback agreements rather than remaining property owners and they're finding willing investors interested in doing deals. <\/p>\n
The health care market \"is aggressive right now,\" said Anthony Pecchio, vice president of health care services for Christman Co. Most health systems these days are more concerned with consolidating, merging or buying other health systems, Pecchio said. <\/p>\n
Health care organizations need to achieve a certain scale to operate efficiently in today's health care environment. At the same time, many are looking for capital to reinvest in their caregiving operations and see divesting of their real estate, particularly medical office buildings, as a way to put money in the bank. Being a property owner or their own landlord is not core to their patient-centered missions. <\/p>\n
The trend has created an opportunity for third-party developers to develop facilities and lease them out or to take existing noncore facilities, such as medical office buildings and outpatient facilities, off health systems' hands, Pecchio said. <\/p>\n
In particular, New York City-based American Realty Capital Healthcare Trust Inc., a real estate investment trust formed to invest primarily in high-quality medical office buildings and health care-related facilities, has been active in West Michigan over the past year. <\/p>\n
The REIT, which floated a $1.5 billion initial public offering in 2011 to invest in health care infrastructure, continues to add properties to its portfolio in the sector, the most recent of which in Michigan was the Spectrum Health West Pavilion. <\/p>\n
The building, built and owned by Christman, is a two-story, 52,000-square-foot structure designed as a prototype for Spectrum that's set up in the manner of a hub-and-spoke-inspired services delivery environment, said Joe Hooker, development services manager for the contractor. <\/p>\n
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Health care reforms drive opportunity for real estate investors<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Originally Published: September 18, 2013 12:05 PMModified: September 18, 2013 2:42 PM As health care reforms continue to change how the industry operates, many health systems are also taking a fresh look at how they manage their facilities. During that re-evaluation, health systems are increasingly asking the question: Do we need to tie up our capital in buildings and infrastructure, or can it be put to better use in other areas of our operations? The answer, at least as evidenced by recent activity in West Michigan, is that systems seem to be opting for sale-leaseback agreements rather than remaining property owners and they're finding willing investors interested in doing deals. Continue reading