For Profit HCA Florida Beefing Up Competition In Southwest Florida To Publicly Run Lee Health

HCA Healthcare is expanding its presence in Southwest Florida and competing with the dominant health system, the publicly operated Lee Health.

The ongoing expansion of the for-profit HCA will include a 100-bed hospital at 3851 Colonial Blvd. that is in planning stages and a freestanding emergency room under construction at 8919 College Pointe Court.

The increasing competition from HCA is among the reasons why Lee Health is considering converting from a public system to a private nonprofit one. The change would provide leverage to partner with other health care systems and would allow Lee Health to go outside of the county. Lee Health’s publicly elected board will make a decision by October on a conversion or not.

In 2006, HCA sold its two hospitals in Fort Myers to Lee Health; Southwest Florida Regional Medical Center that no longer exists and Gulf Coast Hospital that has been renamed Gulf Coast Medical Center at 13681 Doctors Way off Daniels Parkway.

What Does HCA Own In Southwest Florida?

HCA’s main presence in Lee is through ownership of eight MD Now Urgent Care locations, including one in Naples. The locations are in Fort Myers, Cape Coral, Harlem Heights, Lehigh Aces, Estero and Naples. HCA bought MD Now, which has 59 locations in the state, at the end of 2021.

The company is building a freestanding emergency room in Fort Myers at 8919 College Pointe Court with an estimated cost of $6.5 million, according to Lee County records.

“HCA Florida Fawcett Hospital, located in Port Charlotte, is involved in the project,”  spokeswoman Debra McKell said in an email. “This 10,820-square-foot facility will operate around the clock with full-service emergency services including laboratory, X-rays, CT scanning and ultrasound. We recently held a beam signing event at the location and are expecting it to open in fall 2024.”

HCA Fawcett Hospital opened a similar freestanding emergency room in Cape Coral in June 2022. The address is 322 SW Pine Island Road.

What’s The Status Of The New Hospital?

The hospital will be built at 3851 Colonial Blvd., which is just northeast of McGregor Baptist Church.

“The details are being finalized after the site had to be rezoned and some mitigation had to be done,” McKell said.

She did not immediately have a time when construction will start.

When HCA announced in 2021 plans for the hospital, officials said it would be four stories with 275,870 square feet and would include an emergency room, trauma care, labor and delivery, among other services.

The Fort Myers hospital is one of three planned as part of HCA’s market expansion in the state. The other two are a 90-bed hospital in Gainesville and a 60-bed hospital near the Villages. Statewide HCA Florida has 49 hospitals and 65 urgent care centers. It reports treating 7.4 million patients in the state each year.

Nationally HCA Healthcare reported $17 billion in revenue for the fourth quarter of last year ending Dec. 31, according to its financial report.

 

Source: News-Press

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Big Investor Has A New Strategy For Healthcare

A new investment company, SPHERE Investments — standing for Strategic Public Health Equities and Real Estate — is looking to reinvigorate approaches to healthcare investment.

While the company is technically new, it’s the development of Flagler Healthcare Investments, with a lot of experience, access to massive amounts of industry data analysis, and a claimed $1 billion healthcare portfolio.

Founder Didier Choukroun tells GlobeSt.com that to make healthcare work well, a much broader investment in properties that, while not considered healthcare, are a necessary infrastructure.

“I wanted to find a sector of the U.S. economy that could drive the economy with a value proposition that would go beyond the buildings,” said Choukroun. “We decided in 2023 to not only expand geographically, but we expanded the mission and repositioned the entire company. We have to get beyond healthcare.”

He saw a need to look at social drivers of healthcare, including environment, nutrition, education, housing, and transportation.

“We also wanted to make sure we continued on what has made our company successful, which is if you really want to invest in healthcare real estate, you cannot only focus on your immediate tenant,” said Choukroun. “Success comes from the outcome of the patient.”

On the direct care provision side, they focus on tenants in oncology, cardiovascular, neurology, and a combination of GI and endocrinology. Choukroun points to a Pareto-type distribution, with the four sectors served by 19% of all providers bringing in between 65% and 66% of personal care expenditure. It provides a density of demand, creating a strongly stable floor. The firm is also focused on senior living and care, including independent living, assisted living, and memory care, with some twists.

“None of the management companies are profitable,” Choukroun said. “Acquisition costs are four to five times EBIDTA. Most of the good management companies refused to sign long-term leases, forcing property owners to hold the risk. I think the business model of senior living in the US is not functioning; 98% comes from the inclusive rental of the bed. Every single operator fights on price. It’s their only strategy. Instead, they should be looking at both healthcare and non-healthcare services for the residents, including wellness, adult day care, and transportation. Management fees are 5% of revenue. There is no way the manager can focus. The way out is to focus on the outcomes.”

SPHERE identified 181 management companies with at least 20 communities under management.

“They’re trying to make money on the real estate,” said Choukroun. “Owners give the management companies a small carried interest or something like that. If you focus on outcome, you will bring technology in, you will rethink the model. One way to change the model is to be much more proactive in creating a pipeline of leads,” like being in contact with potential future residents. And then there could be other seemingly non-related services, like having daycare for kids and using elders, who may lack self-esteem in current care philosophies, to have a role. Or tutoring services for underprivileged communities near a center.”

 

Source: GlobeSt.

MOB In Denver Market Among Top 20 Largest US Deliveries of 2024

Despite difficult capital conditions, the medical office sector remains a strong player in the commercial real estate industry, demonstrating resilience.

With that in mind, CommercialSearch just published a new report overviewing the medical office building market. The report looked at the 20 largest medical office deliveries of 2024, highlighting the markets with the most active medical office pipelines as well as the evolution of the largest U.S. medical building markets over the last 10 years.

The Madison market is home to the largest medical office building to be completed this year. Standing at 469,000 square feet, the Eastpark Medical Center is slated for completion in Q3 2024.

Denver Findings:

  • A rendering of the Intermountain Health Lutheran MOB. (CREDIT: Davis Partnership Architects)

    The Intermountain Health Lutheran Medical Office Building in the Denver market will be the 11th-largest medical office delivery to be completed this year, standing at 137,000 square feet.

  • Owned by Intermountain Healthcare, the building broke ground in December of 2022 and will open to the public in Q3 of 2024.
  • Davis Partnership Architects is the architect and Saunders Construction is the general contractor for the project.

NexCore Group was selected by Intermountain Health to develop the 5-story, 130,000-square-foot medical office building on the new 28-acre Lutheran campus, located at 12905 W. 40th Ave. in Wheat Ridge. The campus, including the hospital, is being relocated about 3.5 miles from its current location. The independent medical office facility will connect to the new Lutheran Hospital via a pedestrian bridge. Planned building services include cardiovascular, maternal & fetal medicine, a weight loss center, a breast cancer center, a neurology and neurosurgery center, a laboratory, and a joint-venture ambulatory surgery center.

Click here to read the full CommercialSearch report.

 

Source: Mile High CRE