Thought Leaders: The Impact of the Affordable Care Act

By Mark Engstrom
Executive Vice President, Acquisitions
Healthcare Trust of America, Inc.

Healthcare Trust of America, Inc. (“HTA”) is taking note of last year’s most significant events and what impact these will have upon health care delivery in 2013 and beyond. Without question, the most notable event of last year was the Supreme Court decision clarifying that the Affordable Care Act (“ACA”) qualifies under the federal government’s taxation authority. The second was the re-election of President Barack Obama which removed any potential for the repeal of this law. As a result, the new financing and delivery structure resulting from the ACA is the creation of the Accountable Care Organization (“ACO”). Fundamentally, ACO’s are groups of providers and suppliers of services (hospitals, physicians and others involved in patient care) that are brought together to coordinate care for their Medicare patients. ACO’s are designed to be the vehicle through which care will be provided and paid for under the state insurance exchanges.

These events will change the type of health care being delivered in medical office buildings (“MOBs”). The increased number of insured patients and the focus on prevention will generate new patterns of care across the country and in your community. Demand will increase for care at locations that are located in close proximity to the hospital campus so that both patients and providers can increase their efficiency and productivity. Since hospitals have a strong identity in their communities, so will the tenants who are associated with the hospital. MOBs will also continue to see services move from the hospital acute care location into the outpatient or MOB locations. This is both for patient convenience and so that the cost of care can be reduced as the increase in demand pushes growth in both locations and services.

We are confident that our medical office buildings will adjust to these new demands from providers who are willing to expand and accommodate the new patient volumes. HTA is prepared for the growth in visits and to increase the role that MOBs play in the delivery of health care services. We are both interested and involved in how delivery changes take place in our buildings and we seek to accommodate these increases in both providers and patients.

As a landlord who focuses solely on the ownership and operation of MOBs, HTA will continue to monitor the regulations that impact health care delivery and health care providers. We know that whether or not you are a hospital, health system, large medical group or an independent physician practice, you will be required to change and adapt to these new programs over time. One thing we know is that change is here to stay and that change can be an opportunity for new and better business practices to emerge.

We will continue to work hard to provide a safe, clean and comfortable place for you to work and for your patients to receive health care. We take pride in our buildings, our tenants and the work that you do in each of your communities.

While the events of 2012 provided closure to the question of whether or not health care reform is here to stay, there is much that remains unanswered regarding the impact upon our nation’s health care industry. We look forward to working with you in the coming months and years to meet these changes head on.  

About Healthcare Trust of America, Inc.

Healthcare Trust of America, Inc. (NYSE: HTA), a publicly traded real estate investment trust, is a fully-integrated, leading owner of medical office buildings. HTA listed its shares on the New York Stock Exchange on June 6, 2012. HTA is a full-service real estate company focused on acquiring, owning and operating high-quality medical office buildings that are located on the campuses of nationally recognized health care systems in the major U.S. metropolitan areas.

Since its formation in 2006, HTA has built a geographically diverse portfolio of properties that totals approximately $2.6 billion based on purchase price and is comprised of approximately 12.6 million square feet of gross leasable area located in 27 states. With overall portfolio occupancy of 91%, 57% of HTA’s annualized base rent comes from credit rated tenants.

The company has developed a national property management platform which it directs through its primary regional offices in Scottsdale, Indianapolis, Atlanta and Charleston.

For more information, please visit: www.htareit.com