What Attendees Learned From Colliers Healthcare Conference

Colliers had a national healthcare conference in October. Here are some of the topics that came up.

One was Stark Law, federal laws that make physician self-referral illegal to keep doctors from referring Medicare patients to other services if providers or their families have a financial interest.

“Compliance with this anti-kickback statute is crucial for professionals in the industry,” the report said. “Providing strong leadership and thought leadership on Stark Law is essential for ensuring legal compliance for clients. [Hall Render’s Andrew Dick, who specializes in healthcare law], also highlighted the growing importance of Ambulatory Surgery Centers (ASCs) and outpatient care in the future profitability of health systems and allows hospitals to allocate resources away from expensive acute care inpatient facilities.

ASCs bridge into the next topic, with MOBs expanding beyond medical office buildings to medical outpatient buildings. Healthcare provider organizations are “reducing their administrative office footprint” in a bid for greater efficiency and cost management. “As healthcare providers face challenges due to low profit margins and rising labor costs, the panel emphasized the necessity of reducing office space, an approach that has been adopted by various organizations, leading also to a reduction in new construction costs,” they wrote. The new trend sees climbing occupancies as big organizations seek to decentralize a lot of patient treatment at a lower cost than running everything through a hospital.

Creative lending is something that all areas of CRE have to consider. Healthcare offers some unique opportunities. “A Credit Tenant Lease (CTL) presents a creative solution by leveraging the high credit of hospitals for long-term leases,” they wrote. “This approach minimizes risks associated with loans and provides an opportunity for a closer-to-ownership experience without the actual ownership responsibilities.” In a way it sounds like a practice of landlords working with large companies, whether in retail or logistics, providing preferred leasing based on high credit ratings.

Two other topics: growth areas in healthcare and supportive housing. Proton oncology care, a product of advancements in cancer treatment that need space, and children’s hospitals that can address the particular needs of pediatrics are growth areas. And then hospitals are increasingly getting involved in providing affordable housing because “providing housing options for low-income patients can significantly impact their recovery and reduce high costs associated with emergency care.”