Six healthcare trends appraisers should know

BVWireIssue #174-1
March 1, 2017

Not surprisingly, the repeal of Obamacare tops the list of key trends affecting hospital real estate, according to an article in Becker’s Hospital Review. Of course, there’s overlap for business appraisers in this sector. Here’s the full list:

  • Repeal of the Affordable Care Act (will trigger increase in the construction of microhospitals and other ambulatory facilities);
  • Value-based reimbursement and changes to healthcare delivery setting (outpatient migration will continue);
  • Tax-exempt hospitals under pressure (challenges to property tax exemptions will continue);
  • Capital markets (there will be a slight uptick in overall cap rates in 2017);
  • New rules impact leasing arrangements (providers carefully analyzing whether to own or lease new facilities); and
  • Continued regulatory scrutiny (fraud and abuse investigations will continue; scrutiny on ICE protecting health information will gain steam).
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