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 towns or counties, local healthcare 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, New Jersey, with mutual objectives. In fact, over the past four years, he has leased 127,000 square feet of medical space worth some $27 million in Bergen County for practices who choose to co-exist.
“This is a golden opportunity for local medical professionals 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 consortium 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 physicians’ 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 accommodating their patients.