IRVINE, CA—Like executive suites in the office market, shared medical space to accommodate multiple practices is being explored by medical landlords, Sonya Dopp-Grech, SVP/director of healthcare services for NAI Capital, tells GlobeSt.com exclusively. The concept allows for physician mobility and maximized use of the space.

“The healthcare industry is showing movement toward time-share concepts, allowing physicians to serve different geographical areas without the need to open additional offices,” says Dopp-Grech. “The concept has already been widely used by hospital groups to allow various specialists to reach out into the communities they serve. The next step is for independent operators to offer this format without a specific hospital affiliation.”

Medical landlords are beginning to explore this option with vacant or underperforming space in their buildings. The caveat is finding a responsible and reputable source to manage this type of space, which would look like a regular medical office with a common waiting area, receptionist and exam and treatment rooms. They may also contain a shared lab, equipment and other amenities.

“It's like Regus does in the general-office market,” says Dopp-Grech. “Doctors go in and out and don't need private offices so much anymore. They have their laptops and they see patients, but this way they can see patients at all ends of the county and don't need to find a long-term lease in each location. It makes great sense, since the way of the future is consolidations.”

The concept makes sense for smaller independent practices or those who want to combine with a larger group. From the landlord perspective, if one is faced with vacant space, this presents another way to fill it with medical tenants.

As GlobeSt.com reported in January, consolidation is the keyword for medical practices today as they search for operating efficiencies. Since healthcare is moving away from the hospital setting into more of a retail environment, this consolidation presents challenges for larger medical practices seeking space to accommodate their needs.

One solution has been for larger groups to lease retail space that formerly held sizable stores such as Barnes & Noble, Dopp-Grech told GlobeSt.com. As GlobeSt.com reported earlier, as healthcare moves toward retail settings, many retail landlords are finding themselves for the first time involved in build-outs and tenant improvements for medical practices. While this trend is welcome among most landlords, they may not be prepared for the high cost of some of these improvements, according to Dopp-Grech.

“Consolidation is occurring because health systems want to make everything efficient for the groups,” says Dopp-Grech. “Smaller groups won't be able to survive with malpractice insurance [and other costs]. So they're consolidating and going into larger retail buildings, such as a Barnes & Noble that got vacated.”