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Flagler Health, UF Health Sign Letter Of Intent To Collaborate On Health Campus

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St. Augustine, Fla.-based Flagler Health+ has signed a letter of intent with Gainsville-based University of Florida Health to collaborate on a comprehensive health campus in Florida.

If a final deal is reached, the healthcare campus would be built on a 40-acre parcel of land in St. Johns, Fla., which was bought last year by Flagler. The land is known as Flagler’s Durbin Park Campus.

With the letter of intent, which is nonbinding, the two organizations will explore options for the healthcare campus. The options being considered include building hospital facilities and ambulatory surgery centers, as well as establishing space for medical residency programs or other educational programs.

Flagler Health+ already plans to build its health village on the parcel, but is now looking to expand its health campus with UF Health. Flagler expects to break ground on the health village this fall.

“Collaboration is an important part of our strategy at Flagler Health+, as we look to create individualized experiences and customized service offerings for the distinctly unique communities we serve today, and those we will serve in the future,” said Flagler Health+ President & CEO Jason Barrett.

“We are looking forward to continuing discussions with Flagler Health+ to establish shared goals on behalf of residents of the region,” said David Nelson, MD, president of UF Health.

 

Source: Becker’s Hospital Review

Developer, USPI Break Ground On Tennessee Medical Office Building With Surgery Center

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Oman-GIbson Associates broke ground on a medical office building and ambulatory surgery center in Murfreesboro, Tenn., that will be owned by Dallas-based United Surgical Partners International, HC+ONews reported Dec. 22.

Upon completion the new facility will include 30,000 square feet of medical use space. (PHOTO CREDIT: Environments for Healthcare Architecture)

What you should know:

1. The entire development will be nearly 30,000 square feet with the ASC taking up more than 14,000 square feet.

2. The ASC will have two operating rooms and a procedure room. The rest of the square footage will be used for office space.

3. The developer expects to complete construction in June 2021.

 

Source: Becker’s ASC Review

What’s Behind Medical Office Buildings’ Strong Trajectory

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One of the US’ fastest growing industries, healthcare spending reached almost $3.5 trillion annually in 2017.

The US Centers for Medicare & Medicaid Services anticipates national healthcare expenditures to grow to $5.7 trillion by 2026. With this growth, healthcare real estate, specifically medical office buildings, are poised for further success.

Medical Office Buildings

Medical office buildings comprise approximately 10% percent of the US office sector. These buildings are typically about 40,000 square feet and range from small physician offices to large healthcare systems. Investors are attracted to this asset class due to its stability and positive forecasts for a strong performance. On the rise for the last four years, medical office sales totaled $10.4 billion in 2018.

“Medical office buildings are so popular and are in demand as a renovation or as new construction,” says Jason Signor, CEO and partner of Caddis Healthcare Real Estate. “The market is phenomenal and occupancy levels and rental rates are healthy.”

It is well-known that the the aging US population is directly correlated with the rising demand for healthcare as doctor visits dramatically increase with age. Individuals 65 years and older spend five times more on healthcare than those who are younger. Yet, even with the favorable demographic and economic backdrop, new healthcare construction has not kept up with demand.

“With the continued shift from inpatient to outpatient care, new real estate strategies are being implemented which includes moving to urgent care centers, MOBs, micro-hospitals and health-system sponsored wellness centers,” says Signor. “ Outpatient care is booming and will continue to flourish in the future. The challenge, of course, is for our sector to keep up with the growing demand.”

Ambulatory Surgery Centers

Ambulatory surgery centers—healthcare facilities which offer patients the option of having procedures and surgeries performed outside of the hospital setting—have drastically reduced healthcare costs. According to the American Hospital Association, the number of ASCs and hospitals are almost equal with 5,534 hospitals and 5,532 surgery centers. While hospitals have declined by 5%, surgery centers have grown as much as 82% since 2000.

“ASCs will continue to dominate the healthcare real estate landscape,” says Signor. “We won’t see these large hospital campuses being built as much. As the campuses get older however, you will see more renovations as hospitals keep up with medical technological advances and stay abreast with ASCs.”

 

Source: GlobeSt.