Block Healthcare Development 2014 Overview

The healthcare real estate market continues to establish itself as one of the most active sectors in commercial real estate.

Buying Healthcare Real Estate That Includes an ASC? Do Your Homework....

The early 2000s brought with it substantial growth in the ambulatory surgery center (ASC) model.  Physicians and private ASC companies jumped in to the market to compete head-to-head with the acute care hospital outpatient surgery model for the all important reimburse dollar.  From 2003 to

2009, the ratio of hospitals to ASCs went from 1:9 to 1:1.3, with the number of ASC based  companies growing from 93 in 2000 to 381 in 2009.   Touting the decision to enter this arena on the platform of higher patient satisfaction due to the ease of access, physicians and the ASC firms also enjoyed the benefits of less overhead, less management costs, physician comfort and an opportunity to dictate the patient mix that they want to see in the ASC setting versus the traditional hospital outpatient surgery center.  Traditionally, the specialties that have the highest utilization of ASCs are Ophthalmology, Pain Management, Orthopedics, Urology, and Gastroenterology. 

Developer Success Found With Flexibility

One of the key words, if not THE key word, to describe a successful developer is flexibility.  In today’s ever changing economic times, it has never been more true that the only constant is change.  A developer that can’t adjust to change encounters, puts them or their development in a position to fail on multiple fronts. That means they are one step closer to losing trust with key investment partners, one step closer to failed construction projects, one step closer to facing lender recourse.

On the flip side, building a development project that doesn’t just look good on paper, but actually has the ability to be flexible in case of the development “curve balls” that will be thrown your way, will allow for a successful project, bringing solid returns to your investors and provide the foundation for long-term peace of mind.