Building  Owners  and  Managers  Association  International

Building Owners and Managers Association International

BOMA’s Medical Office Building Conference Examines Healthcare Reform Legislation’s Effect on Real Estate

June 16, 2011


Capital Constraints, Regulatory Challenges and Physician Employment Trends also Featured

(WASHINGTON—June 16, 2011) Healthcare reform and the real estate implications of the implementation of the 2010 Affordable Care Act were the focus of the Building Owners and Managers Association (BOMA)’s 2011 Medical Office Buildings and Healthcare Facilities Conference, held May 4-6, 2011 in Dallas.  Both healthcare and real estate industry experts agreed that healthcare reform is here to stay in one form or another and will generate demand for outpatient facilities like medical office buildings and ambulatory care centers, though precisely how much new space would be required remains unseen.

Healthcare reform will also change the way that procedures are paid for; namely, Medicare and Medicaid reimbursements will shift from a pay-for-volume to a pay-for-quality system, which will ultimately affect how physicians use space and what they can pay in rents, experts told the crowd of more than 650 healthcare executives and owners, developers and managers of healthcare real estate.   The conference featured industry experts from such firms as The Cleveland Clinic, Carolinas Healthcare, Methodist Health, Parkland Community Hospital, Trinity Health, HCA, Lifepoint Hospitals, MedStar Health, Inc., Ventas, HCP, Inc., Grubb & Ellis Healthcare REIT II, Healthcare Realty Trust, Standard & Poor’s, Morgan Keegan, Savills, LLC, and Cain Brothers, among many others.

Regulatory compliance and hospital monetization were also widely discussed. Regulations commonly referred to as “Stark laws” and anti-kickback statutes regulate physician self-referral under Medicare and Medicaid and underscore the need for highly-professional property management staff who can ensure compliance, many speakers said. The regulatory environment emerging in the wake of the Affordable Care Act—and the steep fines that accompany non-compliance—makes the use of third-party developers even more attractive for hospitals. As hospitals look to monetize their real estate assets to focus on their core mission of providing care, regulatory compliance concerns can also be addressed.

Experts touched on the movement toward hospital employment among physicians, which healthcare reform is also expected to accelerate, as well as the anticipated physician shortage that continues to grow. Attendees also toured the Baylor University Medical Center’s Charles A. Sammons Cancer Center, where they got a first-hand look at how healthcare developer  Duke Realty worked with Baylor through complex strategic, financial, operational and regulatory issues to create a state-of-the-art cancer treatment center that is designed to be a center of excellence.

“BOMA’s MOB Conference provides a forum for industry leaders to exchange critical information about what the future holds for healthcare and healthcare facilities,” commented Gordon A. Soderlund, Senior Vice President, Business Development at Lend Lease DASCO and 2011 Co-Chair of the Medical Office Buildings and Healthcare Facilities Committee. “Our industry is confronting a tremendous amount of change, from healthcare reform and new regulations to shifting demographics. This conference brought together the major industry thought leaders and equipped attendees with information to help both healthcare systems and real estate companies refine their real estate strategies.”

Read the full recap here.


About BOMA International
The Building Owners and Managers Association (BOMA) International is an international federation of more than 100 local associations and affiliated organizations. Founded in 1907, its 16,500-plus members own or manage more than nine billion square feet of commercial properties. BOMA International’s mission is to enhance the human, intellectual and physical assets of the commercial real estate industry through advocacy, education, research, standards and information. On the Web at

Lindsay Tiffany
Manager of Media Relations
BOMA International
(202) 326-6365