Special Report: What’s ahead for MOBs?


By John Mugford

The recent InterFace Medical Office Dallas conference featured a panel
that included (from left to right) Howard Wall III of Capella Healthcare, Julia
Ingram Fetzer of Christus Health, Jon Sullivan of Texas Health Resources,
Jeffrey Land of Catholic Healthcare West, and Nicholas Bonrepos of Tenet
Healthcare Corp.
Photo courtesy of InterFace Conference Group

For the most part, the passage of healthcare reform was looked upon as a positive for the medical office building (MOB) sector.

After all, conventional wisdom says that if more people – an estimated 32 million more – have access to healthcare services there will be more demand for MOB space.

This could result in – again using conventional wisdom – the ushering in of a robust era for healthcare real estate developers and an increase in demand from prospective investors.

But as anyone involved in business knows, conventional wisdom is not always a reliable predictor. In fact, there are some potentially negative issues lingering that could combine with aspects of healthcare reform to quell a surge in demand for MOB space – at least third-party developed and owned MOB space.

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