Hammond Hanlon Camp LLC First Quarter Medical Office Building Report: Investments in Population Health and Value-Based Care Support a Healthy Outlook for the Medical Office Building Sector
posted on June 22, 2017
NEW YORK — The medical office building market has been growing rapidly as healthcare policies and shifting demographics encourage health systems to invest in strategies that reduce costs and improve value for their patients. Healthcare providers are subject to a variety of pressures, including revenue reimbursement from commercial and government payors and higher costs for labor and supplies. To manage these pressures, the way health care is delivered by health systems and consumed by patients is undergoing a transformation, as seen in Figure 1. The movement of care is steadily changing from inpatient hospitals to outpatient facilities. The total number of outpatient visits has grown by 1.9 percent per year from 1994 to 2014. Over the same time period inpatient admissions declined at an annual rate of 0.64 percent.
Inside the 1Q17 MOB Quarterly Update
Key Transaction Highlights
Transaction Volume Trends
Regional Transaction Highlights
Pricing and Cap Rate Trends
Industry Rate Benchmark Trends
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