HEALTHCARE REAL ESTATE NOT READY

Texas Health Resources's John Scholl  lamented yesterday at the Four Seasons that the DFW population is expected to double by 2050, but no local healthcare system has the capital structure or financial capacity to keep up. Speaking at a ULI North Texas luncheon, he said credit still isn't readily available for expansion, and many systems are waiting on the effects of healthcare reform. An aging population, more demanding younger consumers, and a shortage of nurses and physicians are all challenges. He added that the anticipated lowering of reimbursements will be a tough storm to navigate for healthcare providers in the coming years.
To balance out the big box hospitals, THR is building more satellite clinics like Texas Health Burleson, an eight-acre outpatient facility. But not all hospitals or MOBs will need to be built from the ground up. John said THR, like other systems, is facing the challenge of keeping up with older facilities while expanding into new markets. Many healthcare systems are investing in existing campuses, but there is an insatiable need for capital at the bigger hospitals to stay current on technologies. Once lending changes, construction and renovations are certain to meet the pent up demand.
 
The Reynolds Company prez Evan Reynolds, with Thomas Allen and VP Austin Wheeler, says activity is very strong in all Texas markets. Representing healthcare tenants exclusively in acquisition of real estate throughout Texas, Evan anticipates strong growth and doesn't think healthcare legislation will slow expansion that much. Were we concerned that his thoughts differ a bit from John's? Nah, if there's a fight, they know a good hospital.

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