News
HEALTHCARE'S 60M SF IMPACT!
March 23, 2010
| And you thought health care reform was just about pre-existing conditions. Ha! Yesterday our reporter in NYC talked to Savills executive managing director Jeffrey Cooper. He says our medical system will need 1.9 SF of space for each of the 32 million newly insured, or potentially 60M SF of new development. | |||
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| Due to reduced reimbursement for inpatient treatment if procedures can be accomplished on outpatients, Jeffrey says hospitals will build more ambulatory surgery and office space. Many hospitals have avoided investment until new laws, and now they can start long-term capital plans; expect an increase in on-campus construction, infill sites, and satellite campuses. Healthcare REITs are also looking to expand with their ample cash from recent debt and equity raised in the public markets. (60M SF is nothing to sneeze at. But if you did, there's probably a place under construction for you.) | |||
