Andrew Fogg

Demand for urgent care facilities is spurring major activity, from new development to leases in retail centers. The Affordable Care Act—which gave more people healthcare coverage—has been the driving force of this new demand. The current political narrative around healthcare, and the many efforts to repeal the Affordable Care Act, could diminish that new demand, however. Andrew Fogg, a partner at Cox, Castle Nicholson, sat down with us for an exclusive interview to discuss the effects of healthcare legislation on the burgeoning urgent care market. For now, he says, landlords and developers aren't concerned, but that could all change if healthcare repeal efforts succeed.

GlobeSt.com: How has the Affordable Care Act had an impact on urgent care demand and the trend of urgent care facilities moving into retail spaces, and will the current discussion over healthcare legislation impact that demand?

Andrew Fogg: The simple reality is that as more folks have insurance, they have access to more frequent and earlier care. There are a lot of people who are at the marginal ends of our society who tended previously to rely on emergency rooms as their primary care physicians because they did not have access to insurance or funds to get into an urgent care facility. As you have had an increase in insurance coverage, there has been a corresponding impact on the need for additional medical care providers and additional facilities. If those expansions were going to go away and fewer people were covered, then we can look at our recent history and see that those folks are going to revert back to using emergency rooms as their primary care.

GlobeSt.com: How has healthcare legislation impacted new development activity?

Fogg: From the developers that we have spoken with are actively looking for areas that are underserved and trying to fill those needs. We just entitled a new project earlier this year at 1122 Washington just west of Downtown Los Angeles that is maintaining healthcare in the area. There was another facility that was displaced by a new hotel development, and those doctors will be moving to this site and continuing to provide access to their patients. That area was completely underserved in terms of urgent care facilities. So, developers are looking for opportunities, and when they find one, they are going to do it. The Affordable Care Act, and candidly any insurance program that makes healthcare more accessible to a larger number of people, is going to help spur that kind of development.

GlobeSt.com: Is there any fear from landlords or developers that if the ACA is repealed, the demand will subside as a result? Have any of your clients been hesitant to sign urgent care tenants for that reason?

Fogg: I haven't heard that concern on any of the deals that I have worked on. I think the people developing these sites are looking to see if there is demand and are there patients that will come. I think most people believe that the healthcare system is not going to change radically, particularly in California, but it is an open question. If things were to move along more seriously and there was a consensus to roll back the expansions that have occurred, I think those questions would start to be asked. The question that everyone does seem to ask theoretically at conferences and so on, but I have not seen a landlord have a lot of apprehension about signing a lease today because the ACA might go away.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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