Three Health Care Investment Trends For 2022

The healthcare sector was one of the beneficiaries of the pandemic, and the industry is rapidly growing.

As investors plan for 2022, Meridian CEO John Pollock is predicting three trends will drive activity healthcare real estate.

1. More Outpatient Facilities

The transition to outpatient facilities has been an ongoing trend over the last decade, and it accelerated during the pandemic.

“Services are migrating away from the acute care centers to more convenient outpatient centers” Pollock tells GlobeSt.com. “Ambulatory outpatient care facilities have been at the center of Meridian’s focus for years and we expect this trend to continue to accelerate and translate into more opportunities for investors, developers, and providers alike.”

2. Telehealth Gaining Momentum

Telehealth is the second major trend that Pollock sees gaining momentum this year.

“Everyone has read about the rapid adoption of telehealth during the pandemic. It certainly spiked in 2020, and while it has since leveled off, it is still an integral and effective means to deliver care,” Pollack says. “The physical manifestation of that trend is creating more flexible exam and telehealth rooms.”

The telehealth trend supports better patient care, especially as providers rush to build outpatient ambulatory facilities.

“We have seen an increasing need for outpatient ambulatory care centers either de novo or through renovations that require heavy lifting to meet the new care delivery models,” says Pollock. “A huge benefit of telehealth is providing greater access to care. During the pandemic, it provided a vital access point to care when physical appointments were not practical. Telehealth also allows patients in rural settings to have access to a specialist from the urban centers.”

3. A Focus On Behavioral Health

Finally, health care providers will increase focus on behavioral health.

“We are seeing numerous requirements,” says Pollock. “The stress, isolation and loss caused by the pandemic was the final straw and it is now widely known that behavioral health conditions impact one in four Americans.”

It isn’t only cultural changes that are driving activity in the behavioral space, but institutional investors are also backing these projects.

“Institutional investors have warmed up to having behavioral health tenants in their buildings and portfolios, and we have even seen cap rates move toward traditional medical office building valuations,” says Pollock. “It’s very exciting to be a part of creating more access to these much-needed services in our communities.”

 

Source: BenefitsPRO

Physician-Owned Florida Real Estate Poised To Prosper In 2022

ERE Healthcare Real Estate Advisors (ERE) just announced the release of an article that explores healthcare real estate investor sentiment for physician owned real estate in Florida.

Andy Matti, Author and Associate with ERE, highlights that, “Demand for healthcare real estate is expected to reach new highs in 2022. This trend uniquely positions physicians who own their real estate to capitalize on unprecedented values.”

Titled, “Physician Owned Real Estate: Florida Poised to Prosper in 2022“, the article provides a look into the future of healthcare real estate based on historical data with a general consensus that healthcare real estate investors remain consistent in their pursuit to acquire properties.

“Even if a real estate sale doesn’t meet the ownership’s current objectives, addressing potential partnership challenges early will maximize the value and security of their investment,” said Collin Hart, CEO and Managing Director of ERE Healthcare Real Estate Advisors.

 

Click here to read more about this story.

 

Analyst: 2022 Should Be Strong For Healthcare M&A

2022 should be strong for healthcare M&A with a surge of buyers from big tech and retail giants following an aggressive 2021 for the buyouts, Irving Levin Associates, publisher of the LevinPro HC platform predicted.

“It has been a historic year for healthcare M&A, with more than 2,500 deal announcements, largely driven by private equity activity across a variety of sectors,” said Dylan Sammut, Editor of Health iCare at Irving Levin.

Health care merger and acquisition activity soared in the fourth quarter of 2021, hitting a record 733 deals with activity in sectors such as Physician Medical Groups and Long-Term Care drove much of the volume, with 138 and 122 deals, respectively, the firm noted.

Demand for healthcare real estate, such as medical office buildings and properties, helped drive the increase in healthcare M&A. While the number of deals were up, their average size was down.

Deal value in the fourth quarter totaled $120.6 billion, a decline of 11% compared with the $135.5 billion spent in the third quarter, based on disclosed prices. The spending in the fourth quarter of 2021 was 2% lower than the $123.6 billion disclosed in the fourth quarter of 2020.

“Activity in the Home Health & Hospice and Behavioral Health Care sectors remained stable thanks to more patients are seeking alternatives to facility-based care turning toward home health services, and anxiety caused by the effects of the COVID-19 pandemic is causing a surge in individuals seeking mental health treatment and services,” the Irving Levin report said.

The technology sectors saw a 5% drop in the third quarter with M&A activity in the eHealth sector remaining level, with 86 deal announcements.

“Although M&A demand for telehealth providers has softened compared with 2020, we’re seeing increased activity for providers specializing in care coordination and patient engagement as the industry moves to a value-based care system,” the report said.

 

Source: GlobeSt.