Provider Perspective: Finding opportunity amid difficult times

SYSTEM EXECUTIVE SAYS REAL ESTATE FIRMS CAN PARTNER WITH HOSPITALS

By John Mugford

Ron Long of Texas Health Resources

When thrown together, the sagging economy, the financial difficulties facing health systems and a continued demand for healthcare services as baby boomers enter retirement could actually create a perfect storm – in a good way – for companies involved in healthcare real estate.

This was one of the messages delivered to healthcare real estate professionals by hospital executive Ron Long during a presentation at the RealShare Medical Office Buildings conference in Dallas in late 2008. Mr. Long is the executive VP and CFO of Arlington, Texas-based Texas Health Resources Inc., which operates 13 hospitals in the Dallas-Fort Worth area.

The one-day conference included about 10 panel discussions focusing on the development, ownership and investment in medical office buildings (MOBs), which, should weather the recession better than other sectors of commercial real estate. It was the first conference concerning MOBs sponsored by New York-based Incisive Media, which operates the RealShare series of real estate conferences in national, regional and metropolitan markets.

As Mr. Long kicked off the conference with his presentation, he noted that even cash-strapped, major health systems are going to feel a need to expand their presence in growing areas of their markets, both during the current recession and when the economy recovers.