2021-09-02

Number of Independent Physicians Diminish as Large Health Care Real Estate Acquisitions Grow

Mergers and Acquisitions (M&A) is not a new practice in the healthcare industry, but it has been growing at an accelerated pace each year. Physicians have seen large hospital institutions swallow up smaller practices, which has been beneficial for some. However, for other independent physicians, it has made their competition tough to compete with, and can strong-arm many into joining these larger practices. Large companies and investment firms can not only grab small practices, but since they have far deeper pockets, they are also able to acquire just about any bit of medical real estate available, leaving those smaller independent physicians on a smaller budget, with no room to move or grow. 

Just this August, Medical Properties Trust, an Alabama-based real estate investment trust, paid $171 million for a large selection of medical properties in Ft. Lauderdale, Florida- including a hospital, a medical office mall, and three other offices. In the previous quarter, the same REIT acquired four Los Angeles hospitals for $215 million, adding to their already sizable $22.3 billion property portfolio. According to Medical Properties Trust’s website, 84% of that value comes from hospitals alone, of which there are over 200 owned by them in the United States alone. 

This is just one of many examples reflecting the accelerating M&A trend, and there is no indication of it slowing down any time soon. Our mission at CarehubⓇ Coworking is to provide independent physicians with flexible and professional medical office space at a fraction of the cost of full time space so that physicians can remain independent. To learn more about how CarehubⓇ Coworking could help your practice grow, call us at (512) 543-2273 or email lee@carehubcoworking.com.