20 To Know in Healthcare answer a variety of questions

Business First recently published this distinguished list. Chad Pinnell (one of my partners) and I are very pleased to have been nominated. We were invited to participate in a round table with other nominees, and  Business First will be releasing an excerpt of the round table soon. Thanks to Business First and Clark Schaefer Hackett for creating this program provide a monthly spotlight for healthcare and other industries.

There are many interesting individuals on this list, and interesting is to dive into their responses to the questions:

     1.  Why did you get into this profession?

     2.  Is it as fulfilling as you thought it would be?

  

     3.  What’s the most exciting thing happening today in your industry?

     4.  What’s the biggest worry?

     5.  Name one thing you would change about the health-care industry in the U.S.

     6.  What do you consider your greatest achievement to be in your role with your company?

     7.  What do you feel you have yet to accomplish?

     8.  What’s one piece of advice you can give for to someone who wants to build a career similar to yours?

     9.  To what other industries should health care look for inspiration to be more efficient and  effective?

Nominees included the following, their names are linked to their responses for the above referenced questions:

Amy Rohling McGee, Health Policy Institute of Ohio

Dr. Nick Baird, Alliance to make US Healthiest

Kelly Kelleher, Nationwide Children’s Hospital

Clay Marsh, Ohio State University Wexner Medical Center

Anthony Dennis, BioOhio

Matthew Weekley, Plante & Moran PLLC

Jeff Biehl, Access Health Columbus

Peter Pavarini, Squire Sanders LLP

Chad Pinnell, Equity Inc.

Aaron Wandtke, Executive Staffing Solutions

Kenneth Weixel, Deloitte & Touche LLP

Greg Moody, Governor’s Office of Health Transformation

Cathy Levine, UHCAN Ohio

Karen Morrison, OhioHealth Foundation

Dr. Teresa Long, City of Columbus

Bob Gesing, Trinity Health Group

Kevin Conrad, Rogers Benefit Group

Jeff Klingler, Central Ohio Hospital Council

Larry Harris, Willow Brook Christian Communities

Paul Heiserman, Equity Inc.

The Ohio Orthopedic Center of Excellence and The Cardinal Orthopedic Institute announce merger

In keeping with a trend we've seen recently, (The Zangmeister Center and Columbus Oncology / Hematology Associates merger, article below) these two major orthopedic groups have announced a merger, creating a Columbus orthopedic "Super Group"  This new organization will house more than 50 orthopedic surgeons and specialists at more than 11 locations distributed throughout the central Ohio area and surrounding regions.... Seems like a recurring theme is the strength in numbers!

http://www.prweb.com/releases/2012/OrthopedicMerger/prweb10126490.htm


http://www.bizjournals.com/columbus/print-edition/2012/12/07/independent-orthopaedic-practices.html?page=all

American Health Network named Central Ohio's first ACO

It's been an interesting ride, and I was wondering who would be the first in the market. No doubt, there will be a lot more change to come....Business first article here:

http://www.bizjournals.com/columbus/blog/2013/01/columbus-gets-its-first-obamacare.html

OhioHealth Corp. has hired Rick Dunning from the University of Maryland Medical System in Baltimore as its senior vice president of real estate and construction, where he oversaw planning and facilities growth for the 13 hospital system.

Business First Article Here:
http://www.bizjournals.com/columbus/blog/2013/01/ohiohealth-fills-vacant-real-estate.html

Taking advantage of the still hot medical building sales market, Mount Carmel sells 2 medical office buildings

It's been no secret that the demand for medical office buildings is at an all time high, due to a few basic factors:

• Interest rates are low, and investors are seeking higher returns
• Demographics and healthcare reform point to an increasing need for facilities
• Investors see this and want to take part in the action

Many investors have had more capital to place than product to purchase. Recently, Mount Carmel sold interest in 750 Mount Carmel Mall and 444 Cleveland Avenue to Health Care REIT for $14.5 Million.

Business First Article located here:
http://www.bizjournals.com/columbus/news/2013/01/02/mount-carmel-profits-from-real-estate.html 

Q2 2012 Medical Office Trends - Real Estate Update

Columbus Medical Sales Pick Up The Pace

Medical users are buying buildings for very low prices, owners of full medical buildings selling buildings at near all time high prices.

This has been the story for medical real estate for a while, what’s new is that activity is substantially picking up on both of these fronts.

Great opportunistic purchases sell for a fraction of their replacement costs

• New building for the New CMA: The Columbus Medical Association just purchased 1390 Dublin Road for $2,300,000 or $67 per SF for 34,283 SF.  Read Business First article here.
• Extra Space for Practice: A large medical user just purchased a 12,623 building in Dublin for $690,000 or $54 per SF. The Seller was highly motivated, having reduced the asking price from $1,700,000 to $699,000.

Occupied building sales continue to yield prices near record highs

• 495 East Main Street, occupied by Nationwide Children’s Close To Home, just sold for $3,950,000 or $234 per square foot.
• 3592 Corporate Drive, a building with Nationwide Children’s just sold for $134.55 per SF, with 2/3 of the building vacant (NCH is occupying 10,000 of the 30,000 SF).

How long will these trends last?

I think that the opportunity to purchase distressed buildings at these low prices, while still available, is winding down.  There are a limited number of highly distressed properties, and while I can point to many examples, I am also seeing many selling or about to sell.  For owners looking to sell full buildings at super high pricing, I think the window will last a bit longer. This trend is driven by interest rates and overall demand for healthcare properties among investors.

What do I recommend?

If you have a need for additional space, either for clinical or administrative functions, now is the time to look at what is distressed in the market, even if your timing is a bit out. I would not recommend waiting to see what’s available in 2 or 3 years because I doubt that there will be as many inexpensive options then.

If you think you could get more use of your capital by deploying into your practice (adding providers, upgrading equipment or infrastructure, opening a new location, etc…) then it is worth analyzing the sale of your real estate and staying in the property as a tenant. This includes developing an opinion of value, examining accounting advantages and disadvantages, and considering your practice goals. If you own your building and have no succession plan for your practice, highly recommend selling your building and remaining as a tenant for 10 years. Owning a vacant building once retired is painful and can be averted with good planning.

Thanks for reading the latest on Columbus medical office space!