BOMA Examines Healthcare Reform’s Impact on Real Estate

Sept. 14, 2011

This year’s healthcare reform legislation will have wide-ranging implications for commercial real estate, experts agreed at BOMA’s recent healthcare conference in Dallas.

Demand is likely to rise for outpatient facilities, such as medical office buildings and ambulatory care centers. As Medicare and Medicaid reimbursements shift to a pay-for-quality model and away from pay-for-volume, the way doctors use space and how much they can pay in rent will change too, according to speakers from top hospitals and healthcare organizations.

Regulatory compliance and hospital monetization were also major themes in light of the steep fines for non-compliance imposed by the Affordable Care Act. This will lead to increasing use of third-party developers and professional property managers, as will laws regulating physician self-referral under Medicare and Medicaid, speakers said.

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