Understanding the Affect of Doctor Employment Traits, Lease Sizes, and Monetary Challenges on Healthcare Actual Property
U.S. physicians are more and more transitioning from non-public practices to hospital employment, considerably impacting the healthcare actual property panorama. The Inexpensive Care Act of 2010 has accelerated this shift, making it financially difficult for impartial medical doctors to keep up non-public practices.
Key Traits in Doctor Employment
From 2012 to 2022, the proportion of physicians in non-public practices dropped from 60.1% to 46.7%. Throughout the identical interval, small practices of 10 or fewer physicians noticed a decline from 61.4% to 51.8%, whereas bigger practices with 50 or extra physicians grew from 12.2% to 18.3%. In 2022, 42% of physicians labored in single-specialty workplaces, and 26.7% have been a part of multi-specialty practices.
Present Employment Statistics
74% of U.S. physicians have been employed by hospitals or companies as of January 2022.52.1% have been particularly hospital-employed.
Affect on Medical Workplace Leasing
Hospital programs are actively recruiting physicians, notably in rising suburban areas, accounting for almost all of medical leasing exercise. Nearly all of latest medical workplace constructing (MOB) leases are being signed by bigger corporate-owned doctor teams and healthcare programs somewhat than impartial physicians.
Evolving Lease Sizes
The standard measurement of medical workplace leases has been rising from 2,500-3,500 sq. toes when non-public practices have been extra prevalent to five,000-25,000 sq. toes, relying on the variety of physicians. Hospital programs are additionally establishing bigger, multi-specialty hubs with leases spanning from 30,000 to 100,000 sq. toes, notably in suburban markets the place they don’t have a close-by hospital campus.
Developer Issues
As suburban growth continues by well being programs seeking to broaden market share, MOB builders are specializing in securing a better proportion of hospital system credit score tenants, requiring fewer particular person lease transactions and fewer difficult underwriting standards.
