Project Caset Study: Equity draws physicians to new MOB

NEW FACILITY WILL ALSO HELP COLORADO PROVIDER TO BE MORE COMPETITIVE

By John Mugford

The future Mercy Regional Medical Center medical office building will contain about 160,000 square feet and be owned by an LLC comprised of the hospital, the developer and physicians who choose to invest.

What’s a not-for-profit hospital to do when physicians and investors open a competing for-profit surgery center and specialty hospital?

The strategy for Mercy Regional Medical Center in Durango, Colo., is to bring in a third-party to develop, finance, own and manage a new medical office building (MOB) with a surgery center – and to give physician-tenants the opportunity to profit by owning part of the real estate.

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