Consolidation of Medical Offices: A Win-Win Trend for Physicians and Patients
David Hirschman Realty Company Connects Physicians and Landlords and Simplifies the Consolidation Process
Paramus, NJ: There is an emerging trend in the medical industry-independent physicians and practices are consolidating into larger group practices. This direction boasts a win-win for physicians, who benefit from the reduction in overhead, and for patients who appreciate the added convenience.
Rather than patients traveling to physicians' offices scattered throughout different townes or counties, local health care providers are realizing that consolidating practices and specialities under one large roof can reduce costs and provide a better patient experience. David Hirschman, president of David Hirschman Realty Company, understands the value proposition and has been assisting physicians and landlords in Bergen County, NJ with their mutual objectives. In fact, over the past four years, David Hirschman Realty has leased 127,000 square feet of medical space ($27 million value) in Bergen County for practices who choose to co-exist.
"There is a golden opportunity for local medical professionals, during this challenging economic climate, to pool their resources, share office space and provide a more professional, full-service, one-stop practice for their patients," says Hirschman.
Full service medical buildings often cater to a wide array of patients' needs-from office visits and physicals, to imaging, tests, and bloodwork. In addition, the constortium may include specialists such as internists, cardiologists, plastic surgeons, gynecologists, gastrointestinal specialists and more. Hospitals are also seeing the value in buying practices, which allows them to offer a variety of specialists in one location, and smaller physicans' practices gain added clout with insurance companies because of their hospital affiliation.
The real estate business is constantly evolving and becoming more effective. Smaller medical offices are choosing to merge with larger, more efficient practices and some larger medical businesses are looking to expand and acquire interested smaller practices. In addition to saving on leasing expenses, physicians are able to streamline services such as insurance, billing and administration, while better accomodating their patients.
A prime example is the office buiding that Forest Healthcare purchased at 277 Forest Avenue, Paramus, now an affiliate of Hackensack University Medical Center. David Hirschman Realty Company connected the physicians with investors and structured the agreement with the partners of the practice. Hirschman also manages the property and the leasing agreement. Today it is a profitable building for the group. Dr. Morey Menacker, a practicing physician and investor agrees: "David Hirschman listened carefully to my needs an found the perfect location, negotiated the lease, and assisted in monitoring the construciton. After a few years, David and I discussed purchasing the building. The practice had grown and there were six physicians. Physicians, in general, are hesitant to invest their own money, and these physicians were able to access sufficient funds to purchase the building alone. David was able to allay their fears and gather a group of silent investors to join the physicians in the purchase. It is now almost ten years later and all parties are thrilled with the return on investment. David has also provided the management for the building, at a lower price than I could get commercially."
Additionally, David Hirschman Realty Company arranged an agreement with Englewood Orthopedic Associates, 401 South Van Brunt Street, Englewood to sell 15,000 sq ft of offices space to a combination of investors and doctors. Initially, 30% of the space was empty and 70% was leased. The new owners decided to install an elevator large enough to accommodate a stretcher with the goal of leasing the available space. The owner, working closely with David Hirschman Realty, attracted a surgical center, dermatologist, urologist and plastic surgeon, and filled the building. According to Michael Rappaport, a building investor: "We worked together with David Hirschman Realty for the past 14 years on the Englewood medical space. David Hirschman Realty managed the building and brought in more than 20 tenants. David's legal background was instrumental in getting the leases done. He has patience and helps negotiate legal terms. What is good for the client is good for the landlord and he bridges that gap very well."
"Medical office consolidation is an effective and efficient response to the financial squeeze many healthcare providers are feeling in today's market," says Hirschman. "It's important, though, for medical professionals to work with a Realtor who understand their business, objectives, and budget so they can find the "right fit" when consolidating. An experienced commercial Realtor should streamline the process by bringing a wealth of contacts, familiarity of the marketplace and office space recommendations. Then, the newly consolidated and streamline office space will certainly benefit the physicians and their patients."
For information regarding Medical Office Space Consolidation or property management solutions, please call us at 201 261 4300 or email David Hirschman (firstname.lastname@example.org) or Rob Morris (email@example.com). David Hirschman Realty Company, Inc. is a commercial real estate firm that sells, manages, and leases commercial, medical and industrial properties in northern New Jersey and Rockland and Orange Counties, New York. Additionally DHRC represents tenants and landlords. Hirschman Realty Management provides construction and property management services. Currently David Hirschman Realty Company, Inc. represents 32 facilities with over 1,200,000 square feet.