The New MOB

With millions of new patients becoming insurable over the next five years, BOMA members were anxious to hear what the future would hold at their Medical Office Building Conference at the Hyatt last Thursday and Friday. Blue Cross Blue Shields' Robert Kolodgy  and Northwestern Memorial Healthcare's Robert Christie agreed that the doctor shortage, especially in specialists, would have to be resolved before too much new real estate was built. New legislation  also provides that hospitals can no longer be owned by physicians,creating opportunities for new investors. Robert Christie says the owner-operator model had worked well for Northwestern, which opened Prentice Women's Hospita l, one of the largest women's facilities in the nation, three years ago.
Shattuck Hammond Partners' Jay Miele, National Health Properties'Shane Seitz and PMB LLC's Mark Toothacre (who maybe should be in dental instead of medical real estate) also explored the new rules about physician ownership. Jay recently sold a hub-and-spoke hospital campus in Evansville, Ind., to a small group of physicians. The hospital leased back  260k SF, and the lease will end in five years, when the group will have to re-evaluate its ownership.

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