BOMA panel discusses how they are coping with sudden changes
By John B. Mugford
The healthcare provider panel at the 2023 BOMA MOB conference in Chicago drew a standing room only crowd. (HREI™ photo)
As health systems struggle financially, with costs of providing care rising and government reimbursements not nearly keeping up, their operating margins continue to decline.
According to a report by Chicago-based Kaufman Hall, a healthcare and education consulting and research firm, more than half of the country’s hospitals ended 2022 operating at a financial loss. That has continued in the early part of 2023 as well.
At the recent 2023 BOMA International Medical Office Buildings + Healthcare Real Estate Conference in Chicago, held April 26-28, a panel of health system executives talked about the financial struggles their systems are facing while still looking for the best and most-efficient ways to grow their footprints and offerings, especially in high-growth markets.
The session was titled, “Paradigm Whiplash: How Health Systems are Adapting Real Estate Programs for a Radically Different and Uncertain Operating Environment.” It was moderated by Jay Johnson, U.S. practice leader of the Healthcare practice with Jones Lang LaSalle Inc. (NYSE: JLL).
The panelists were:
■ Angel Benschneider, system VP with Dallas-based Baylor Scott & White Health;
■ Kyle Marden, director of real estate with Nashville, Tenn.-based HCA Healthcare (NYSE: HCA);
■ Matt Crawford, VP of real estate with Cincinnati-based Bon Secours Mercy Health;
■ Steven Garrett, director of strategic real estate transactions with the newly formed Charlotte, N.C.-based Advocate Health, the result of the merger of Charlotte-based Atrium Health, and Downers Grove, Ill.-based Advocate Aurora Health and which now operates 67 hospitals and about 1,000 sites of care.
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