Real Estate Issues in the Health Care Industry

What will the health care organization look like in the post-health care reform era, and how will its real estate assets help or hinder the transition? This work attempts to answer such questions. It is the result of a conference, jointly sponsored by the University of Southern California and the law firm of Manatt, Phelps & Phillips. The work discusses how to conduct an audit of health care facilities, beginning with an examination of the importance of real estate to health care organizations. This includes a review of the changes in the health care delivery system and in the economy over the past decade. The contributors propose several components to the audit of real estate assets, including: taking an inventory of assets and liabilities; evaluating alternatives for the business; and using benchmarks to project revenues and expenses. Furthermore, the book offers an analysis of capital formation in the 1990s with respect to the health care organization, providing a discussion of the kinds of capital, the function of debt, and equity issues. Finally, a case study is reviewed in which these principles are put into action.