Wednesday, May 9, 2012

Changing Dynamics for a Medical Practice

Health, Medical, Medical Practice
Posted by: Suzy N. Klass
Associate Office Properties Group

According to Healthcare Finance News, merger and acquisition activity in the healthcare industry keeps increasing and the first quarter of 2012 is no exception. Interestingly, the deals are being made by a broad range of medical participants, not just the very large players. Reasons include the interest rate that the Federal Reserve is keeping low. Hospitals are buying physician practices, while managed care organizations are buying e-Health and IT companies. Mergers and acquisitions impact commercial real estate assets by changing supply and demand. For physicians in our local community who are joining a hospital, they need an exit strategy and of course, their first priority is their patients.  But their medical practice space can also be part of that planning.  And if they currently own, it can provide an additional source of income and estate planning. 

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