SCOTTSDALE, AZ-More than 300 real estate professionals have descended on this town for today's RealShare Medical Office Conference and to hear the predictions promised for the sector going forward. The RealShare Conference Series is produced by ALM's Real Estate Media Group, which produces GlobeSt.com and Real Estate Forum.
The first two sessions outlined the state of the medical market and set the tone for the real estate sessions that were to follow. In his keynote address, J.R. Thomas, of MedSynergies bemoaned the stagnation of our legislative leaders as it concerns the so-called ObamaCare reform program. "The stagnation in DC is creating stagnation in the innovation in the private sector," he stated.
That thought carried into the second session, "On or Off Campus: What Is the Future," dealing with the future of medial office environments. "It's hard to take a bold stand and move forward on a real estate decision," commented Sanford Smith of Hoag Memorial Hospital. "Decisions that used to take a few months can now take forever."
The list of threats and burdens is long, and moderator Neil Carolan of Carondelet Health Network ticked them off: Decreasing reimbursements, state and federal cuts, and reform uncertainty were all among them.
Thomas in his keynote cited the reimbursements, pinning the cutback at more than 28%. "These physicians will be in defaults," he stated. ""And since rents are the second largest item on the P&L, it means that you will be in default as well."
COMING UP: IN SPITE OF CONCERNS, OPPORTUNITY ABOUNDS
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
