| The Alter Group's Ray Braun says some interested in healthcare may be spooked by its uncertain future. But The Alter Group has formed a new division within its Entrust Realty Advisors subsidiary (led by Ray) to acquire $100M of medical office properties annually. Yesterday, Ray told us hospital systems need places to put the physicians they're hiring out of independent practices. Ten years ago, 25% of physicians worked for hospitals, now it's 60%. That’s driving up tenant demand for off-campus buildings, which is good for owners and investors. Hospitals are selling on-campus properties to generate cash to compensate for reimbursements (and thus revenue) that have decreased or become unpredictable as a result of ongoing healthcare reform. |
| Ray tells us 10% of hospital-related MOBs have tradednationwide, representing a large pool of potential. Entrust Healthcare is raising funds from institutional and private investors. Chicago, Phoenix and Atlanta—where Alter has offices—are the easiest markets for it to cover. In Chicago, hospital systems haven't sold muchof their property. Northwestern Memorial, for instance, has plenty of cash and doesn't need to liquidate assets. Ray tells us EnTrust will favor the 36 states that have certificate-of-need programs (in purple) to keep healthcare property inventory in check. |
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