Obamacare Augments Health Leases

LOS ANGELES-Several healthcare providers and insurance companies are beginning to augment existing leases or expand into new properties to accommodate anticipated growth from the Affordable Care Act next year. GlobeSt.com recently reported, that L.A. Care Health Plan added an additional 47,306-square-feet of space at the Garland Center in preparation for the ACA rollout. The former Century City Hospital also signed three leases with healthcare providers UCLA, Cedars-Sinai Medical Center and Select Medical valued at $80 million.

While some are crediting ACA with the need for larger medical space, Jason Clark, managing director of Jones Lang LaSalle‘s healthcare group, explains, “The ACA really wasn’t the catalyst to all of the changes going on in healthcare and healthcare real estate. We were already going down a path that was going to create major evolutionary changes in healthcare.” Some of these changes include an aging population, an increase in healthcare delivery costs and cuts in reimbursements rates.