While most of the rest of the real estate investors vie for industrial product and the other more recognizable asset classes, Virtus Real Estate Capital is opting out and doubling down on “cycle-resilient” real estate investments like medical office buildings.

“The easy money has been made in commercial real estate. The easy money has even been made in our property types, which are still more nascent and still have more opportunity than traditional property types,” Virtus Real Estate Capital founder and CEO Terrell Gates told National Real Estate Investor. “We’re no longer in the part of the cycle where you can just sort of put it to work, go long and hope everything works out. We believe you’ve got to dig a little deeper than that.”

According to Gates, high occupancy created by sluggish pipelines and strong, stable demand are what attract him and Virtus to MOBs. Despite strong demand for the product, inventory has crept up by only about 1%, meaning that fundamentals are on the way up.

“New supply is rarely an issue in medical office because there are a lot of natural barriers to entry that keep inventory growth very low. Over the last five years, despite overwhelming demand from tenants and healthcare systems for more healthcare space, inventory growth has averaged less than 1%. What little inventory has been delivered is mostly replacing older, functionally obsolete product. So, for that reason, you’ve seen increasing occupancies, increasing rental rates and overall positive trends for the underlying medical office assets,” Gates said.

Source: Bisnow

The number of people seeking hospice care is growing statewide as the population ages and health care evolves, resulting in an increasing need for compassionate end-of-life care.
Florida has the second most hospice patients in the nation. Only California has more, while Texas ranks third, national health care data show.
The number of people receiving hospice care in Florida has increased steadily for at least the past 14 years although there was a slight dip in patients one year about about a decade ago, said Paul Ledford, president and chief executive officer of the Florida Hospice and Palliative Care Association.

“The increase in number has slowed a little bit. It used to be it was increasing 4, 5 or 6 percent. Now it’s down to a 1 percent and 2 percent increase annually,” Ledford said.

Florida residents receiving hospice care — either at in-patient facilities or at home — last year are on track to total at least 130,751 admissions statewide, according to health care data to be published in about two weeks, Ledford said. Total hospice admissions were 128,878 in 2016, and 126,156 in 2015, he said.
Ledford said only 3.4 percent of patient days in Florida occur at a hospice in-patient unit. The remaining 96.6 percent of patient days occur where the patient resides, he said.
Florida has 48 hospices. About three quarters of them are nonprofit, while the rest are for-profit, according to national health care data.

Source: Florida Times-Union

A bill that expands direct primary care services is on its way to the Governor’s desk for final approval. Supporters of the measure believe that in the end, separating primary care doctors from insurance standards will ultimately trickle down benefits to the healthcare industry.
Direct primary care is a model where patients pay monthly fees to their doctors for specific care without dealing with insurance companies.
Currently, these agreements are not subjected to insurance regulations, but there is no written law that guarantees that. A bill on the way to Governor Rick Scott protects these direct care agreements, keeping them out of the Florida Insurance Code.
Rep. Danny Burgess (R-Zephyrhills) believes the model could lead to more preventive healthcare.

“With more affordable primary care, we’re going to be focusing in on more preventative medicine. Hopefully mitigating the need, more so than not, to have to present themselves to an ER, to an Urgent Care, or to other forms of potentially catastrophic situations. So preventative care is key, and we need to encourage that, and I think this bill actually helps do that,” Burgess says.

Sen. Tom Lee (R-Brandon) says this measure will not only benefit patients, but doctors who can circumvent the time consuming insurance process.

“We’re obviously looking for ways to be more creative, to offer different service delivery models here in the state of Florida. And this is an approach that would allow direct primary care physicians who want to take advantage of this opportunity to enter into agreements and avoid the 30% to 35% of their staff time that ends up getting consumed in dealing with insurance companies,” Lee says.

Not all lawmakers are believers. Rep. Richard Stark (D-Weston) is fearful the bill could lead to more cases of patients being scammed.

“Eventually people looking to begin marketing it, eventually insurance agents in the field will probably sell it, and unfortunately people who are not licensed, have no idea what’s going on in the healthcare delivery system, they may be marketing this. And we’ve had plenty of scams in the past where people buy what they call ‘discounts to see doctors’, even though this not, it’s similar. And then people use this and they think they have insurance when they don’t,” Stark says.

Because the practice is relatively new, there is not enough available research showing its effects. But, the model has been endorsed by organizations like the Heritage Foundation and Heartland Institute. The bill is now awaiting Governor Rick Scott’s signature.
Source: Florida Trend

The Miami Medical Center, a 67-bed hospital that suspended patient services in October 2017, filed for Chapter 11 bankruptcy protection March 9.
Here are four things to know.
1. Leawood, Kan.-based Nueterra, along with its partners, acquired Miami Medical Center in 2014 and invested $70 million in the facility. Children’s Health Ventures, the for-profit arm of Miami-based Nicklaus Children’s Hospital, invested in Miami Medical Center with hopes of bringing a unique care model to South Florida. However, the Miami Medical Center struggled to stay afloat.
2. The hospital suspended patient services Oct. 30, 2017, and subsequently laid off its 180 employees.
3. In its bankruptcy petition, the hospital listed its assets as between $10 million and $50 million, and its liabilities as between $50 million and $100 million.
4. Miami Medical Center listed the creditors who have the largest unsecured claims against the hospital in its bankruptcy petition. According to the petition, the hospital owes about $1.2 million to Cardinal Health, $1.4 million to Aramark Healthcare Support Services and about $802,000 to Miami Anesthesia Services.
Source: Beckers Hospital Review

A huge wellness center with a rock-climbing wall, pools and high-tech equipment is planned for the new Lake Nona Town Center.
Tavistock Development Co. announced on March 2 the creation of an innovative wellness, performance and medically integrated fitness facility which has yet to be named in partnership with Signet LLC and its subsidiary Integrated Wellness Partners.
The new 110,000-square-foot center will be built across the street from Lake Nona Medical City in the second phase of development of the Lake Nona Town Center, Lake Nona’s premier entertainment, dining and shopping district that will have more than 4 million square feet at full build out.
The Lake Nona wellness center will offer a medically-based fitness center, sports performance training center, physician offices, community education spaces and community-based programming, which extends well beyond the walls of the brick-and-mortar facility.
The facility will offer:
  • Childcare facilities with outdoor play
  • Public concourse
  • Indoor/outdoor demonstration kitchen
  • Indoor climbing wall
  • Indoor and outdoor swimming pools
  • Outdoor classroom
  • Outdoor training turf
  • Sports performance area with 40-yard sprint track
  • Wellness plaza
  • Zen garden
The fitness center in the wellness center also will feature first-class equipment and on-demand fitness by Lake Nona partner Technogym.

“The creation of this world-class facility in Lake Nona is yet another example of how we are building out one of the most unique and comprehensive wellness communities in the country,” said Gloria Caulfield, executive director of the Lake Nona Institute. “This best-in-class collaboration with Signet and IWP will create an incredible regional asset, offering world-class programs and services across the entire spectrum of health and wellbeing.”

Memberships will be available, though rates have not yet been released.

“The only solution to overcoming the national health care crisis is prevention that comes ultimately through lifestyle change,” said Jim Ellis, managing director of Integrated Wellness Partners. “The overwhelming evidence shows we need to deliver impactful solutions that create community environments where, increasingly, the default choices for individuals, families and employees are healthy choices. The Lake Nona wellness center delivers on the vision and promise made by Tavistock to the entire Lake Nona community to offer its membership a healthy, happy lifestyle. This then will have a ripple effect on not only the Lake Nona community, but many others for years to come as Lake Nona becomes a health and wellness flagship model for the country and around the world.”

CLICK HERE TO WATCH A PROJECT VIDEO

 

Source:  OBJ