In a recently published Q&A article in Commercial Property Executive (CPE), HSA PrimeCare SVP of acquisitions and development Jon Boley discusses his criteria for assessing a healthcare real estate acquisition.
“First, we consider the sponsor or anchor tenant of the building,” Boley explains. “A hospital or physician group with a strong market share is the ideal tenant, so if the building already has a strong anchor tenant, that’s certainly a plus. On the other hand, if we’re able to add value to an acquisition by partnering with a healthcare system and bringing them into a building, then we look closely at how the subject location fits within the provider’s existing service platform, including the lead tenant’s other outpatient facilities.”
After elaborating on two additional criteria, Jon responds to CPE questions relevant to HSA’s strategy variations for on-campus vs. off-campus facilities, as well as the future of healthcare real estate in light of the Affordable Care Act.
“The ACA has driven the consolidation of hospitals and physician practices in many markets as providers look to gain economies of scale and greater market share,” Boley reports. “In some cases, this has resulted in duplication of service locations. In the aftermath, hospitals and health systems have taken a step back to evaluate their real estate strategies and are beginning to consolidate locations into larger facilities or move physicians to locations with higher volume.”
Boley was recently featured in HSA’s latest episode of its healthcare real estate informational video series, Ask an Advisor, in which he further discusses the topic of healthcare acquisitions.
Click here to read the full article in Commercial Property Executive.