Medical Office Building Construction Remains Strong In Starts And Completions

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Although many healthcare real estate (HRE) professionals correctly predicted that medical office building (MOB) sales would remain strong during the COVID-19 pandemic, they did express some concern that construction numbers would fall as providers would be forced to focus on myriad other concerns than moving into new buildings.

But that hasn’t been the case so far.

“Medical office construction has remained very strong throughout COVID, both in terms of starts and completions,” said Hilda Flower Martin, a principal with the HRE research and data firm, during a Jan. 26 Revista webcast. “Completions slowed a little bit towards the end of the year (2020), but starts remain pretty much in line (with past years), as there was about 20.9 million square feet of MOB space started as of the fourth quarter (Q4) of 2020 on a trailing 12-month basis (TTM). The MOB projects being built are typically well pre-leased and continue to get larger.”

 

Source: HREI

Healthcare Realty Trust Acquired $547M In Medical Office Buildings In 2020

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Healthcare Realty Trust had a banner year of investment in 2020, acquiring $547 million in medical office buildings, according to the Motley Fool transcript of the company’s earnings call.

Bethany Mancini, associate vice president of corporate communications, said CMS’ decision to eliminate the inpatient-only list in three years and the continued migration of procedures to the ASC payables list will spur development in the medical office building and ASC sectors.

“We expect health systems to continue to ramp up plans to use a network of MOBs [and] ASCs to lower costs and improve profit margins, while focusing higher-acuity care in hospital settings,”  said Mancini.

Mancini also said the future of government health policy is promising under President Joe Biden’s administration. She believes the administration will expand ACA subsidies and potentially Medicaid.

Healthcare Realty Trust has already made $40 million in acquisitions this year and is also actively developing several medical office buildings with projects in Texas and Memphis, Tenn.

 

Source: Becker’s ASC Review

Children’s Hospital Invests In Pediatric Mental Health With Plans To Open A New Outpatient Health Clinic In Colorado Springs

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Children’s Hospital Colorado is investing in mental and behavioral health services for kids and teens in our community.

The health care provider is planning to open a new outpatient behavioral health clinic in Colorado Springs next year.

As KOAA News 5 has reported, youth suicides occur more frequently in El Paso County than in other communities around the state. That trend grew worse during the pandemic.

“From April to the end of the year, the number of youth suicides in El Paso County doubled, that’s not acceptable to anyone, or it shouldn’t be acceptable to anyone,” said Greg Raymond, the chief operating officer for Children’s Hospital.

Thanks to a generous donation from an anonymous donor, the health care provider is planning to open a new daytime pediatric partial outpatient behavioral health program in a building they plan to remodel along Telstar Drive.

“So, our intent is to provide outpatient services to help kids and adolescents, teenagers, as they struggle and deal with those struggles on a daily basis in the most appropriate environment possible,” Raymond explained.

The facility will also offer a partial-hospitalization program, which means an increased level of care and services. Raymond explained that it’s similar to what a child might receive during a psychiatric hospitalization but with some changes.

“They get to go home and spend the evening with their families, have dinner with their families, sleep in their beds and then come back the next day and receive that same level of care,” said Raymond.

The investment is Children’s goal to establish wrap-around services for kids and teens who need help locally, rather than ask them to drive to Denver.

“What we’re doing is we’re investing in services that don’t exist here today,” said Raymond.

The donation that helped make this facility possible came in the form of a challenge grant in hopes of encouraging additional donations.

Click here to view the KOAA News 5 video ‘Children’s Invests In Pediatric Mental Health’.

 

Source: KOAA News 5