Colliers panelists discuss how PE investments in physician groups affect HRE
By John B. Mugford
The Colliers private equity panel included (from left to right): Jorge Lopez of Midwest Vision Partners, Elliott Sellers of Anchor Health Properties, Mike Cromwell of MDVIP, Dave Davies of EY-Parthenon and moderator Libby Park of Hall Render Killian Heath & Lyman PC. (HREI™ photo)
As recently as 2001, about 60 percent of U.S. physicians were independent, meaning they owned and operated their own practice. In those days, most medical office buildings (MOBs) were multi-tenant, and most healthcare real estate (HRE) developers, owners and brokers usually found themselves doing business with independent doctors.
These days, however, an increasing number of MOBs are single-tenant, and a majority of HRE professionals find themselves serving employed physicians whose practices are owned by hospitals, health systems, insurers and – with increasing frequency – private equity (PE) firms.
A recent study commissioned by the not-for-profit Physicians Advocacy Institute and conducted by Washington, D.C.-based consulting firm Avalere Health found that – in a trend Avalere says was accelerated by the COVID-19 pandemic – only about 26 percent of U.S. physicians remained independent as of January 2022.
Of the almost 74 percent of physicians the survey found to be employed,
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