Some providers are becoming a bit more receptive, GlobeSt conference panelists say
By Murray W. Wolf
The GlobeSt Healthcare conference fireside chat included (from left to right): Andrew Haslam of Providence St. Joseph Health, Murray W. Wolf of HREI and Bill Bernart of Vitalis. (HREI photo)
Healthcare real estate (HRE) professionals have been exhorting hospital and health system executives to monetize non-core real estate assets for at least as long as Healthcare Real Estate Insights (HREI) has been published – 21-plus years – and probably longer. The same goes for using third-party capital for development.
Yet, despite the post-COVID financial pinch many providers are facing, the long-awaited wave of third-party investment and development still hasn’t materialized.
Indeed, perhaps we will never see a huge, sudden swing of the pendulum toward monteizations and third-party development. But some providers are at least gradually becoming more receptive to the idea, especially now that finances are tighter, or when third-party capital is considered as part of an overall strategic real estate portfolio analysis.
That was one of the perspectives shared during a “fireside chat” conducted at last month’s ALM/GlobeSt. Healthcare conference at the Andaz Scottsdale (Ariz.) Resort.
One system that has performed a portfolio analysis and has, as a result, monetized some non-core assets in recent years, is Renton, Wash.-based Providence St. Joseph Health, which operates 51 hospitals and hundreds of locations in seven states concentrated in the western part of the country.
Andrew Haslam, the chief real estate officer with Providence, took part in the fireside chat, which also included Bill Bernart, VP of acquisitions with Miami-based Vitalis, an HRE-focused investment firm. The session was moderated by Murray W. Wolf, publisher and founding editor of HREI.
“I think you’re starting to see more and more health systems
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