Realty Trust Group: Real Estate Options For Hospital Closures

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Apr 01, 2021, 12:07 ET

KNOXVILLE, Tenn., April 1, 2021 /PRNewswire/ -- Consolidation continues to be a trend in the U.S. healthcare industry, and there are no signs of a slowdown. One casualty of this trend can be a hospital whose services or location are considered to be duplicative. Other trends, like the shift to outpatient care, are also requiring less use for certain hospitals. The number of U.S. hospitals continues to shrink and as those outdated or redundant facilities are closed or replaced, they can become an economic and aesthetic problem for the health system and its community.

About 40% of today's hospitals were built in the 1950's, 1960's and 1970's, which means that most of these approximately 2,000+ hospitals are either partially or fully functionally obsolete.

One of the primary challenges facing hospital management and ownership in these situations is what to do with the closed facility.

When it comes to establishing the "next phase" of a closed hospital, there are three primary alternatives to consider:

Repurposing
Redeveloping
Selling

To read more, check out this white paper, "Real Estate Options For Hospital Closures" that provides insight for health system management teams in understanding some of the options and processes which should be considered when dealing with a hospital that is scheduled to close.

About Realty Trust Group

Realty Trust Group, LLC ("RTG") is a real estate advisory and services firm offering a full spectrum of real estate services including advisory, development, transactions, operations and compliance.

Since 1998, RTG has helped hospitals, physician groups, and property owners navigate the rapidly changing industry with growth strategies that gain market leadership as well as enhance patient and physician experiences for better delivery of care. Our philosophy is to provide innovative solutions to the complex and challenging issues found in today's healthcare real estate market. These solutions include strategic campus and facility planning, portfolio optimization, portfolio monetization, project development, leasing, acquisition and disposition services, portfolio management, regulatory compliance and many other ideas and services. For more information about RTG and our innovative healthcare real estate services, visit www.realtytrustgroup.com, Facebook, LinkedIn, or call 865-521-0630.

SOURCE Realty Trust Group LLC