FORECAST BREAKFAST A SUCCESS
By Marisol Ricoy McAllister, Farleigh Wada Witt
The 19th Annual CREW Portland Economic Forecast Breakfast, “This Won’t Hurt a Bit: The impact of Healthcare Trends on Commercial Real Estate” sold out to an audience of 360 people – and Elizabeth Hayes of the Portland Business Journal took notice. See her January 10, 2014 article:
Sally French Tyler, EVP, Division President, First American Title Insurance Company traveled from Atlanta, Georgia to describe the impact of the Affordable Health Care Act on commercial real estate, and the way in which hospitals are monetizing real estate to make money. In addition, she said to expect facility upgrades. Please find a link below to her materials:
David Elkins, Chief Asset Officer, Real Estate and Construction for Providence Health & Services, agreed with Ms. Tyler. As the person in charge of real estate at a regional hospital system, Mr. Elkins provided insights into healthcare and hospitals. Both Ms. Tyler and Mr. Elkins discussed the trend of medical retail space which is the growing rapidly. Nearly 3200 retail clinics are expected in 2014. In addition, more “patient centric” health care is driving the expansion of hospital satellites, and technology is driving the consolidation of hospital facilities because electronic records need less space. Mr. Elkins reiterated that a power shift is occurring, moving from hospitals and doctors to patients, because of the regulatory environment that expects more quality at a lower cost, and because of technology. For more information regarding David Elkins’ presentation please contact him at: David.Elkins@providence.org.
John Mitchell, local economist at M&H Economic Consultants once again entertained the audience while providing invaluable predictions for the upcoming year. Although not there yet, Mr. Mitchell stated that the economy was closing in on January 2008 levels and that most wealth lost from 2007 has been recovered. In addition, he stated that nobody quite knows the impact of Obamacare yet. Some say it will allow entrepreneurs to innovate because they will be more willing to leave a job with secure medical benefits because they can purchase medical care on the exchange. However, he said how young people behave is critical. They need to purchase insurance to offset the high cost of care for the elderly.
Click here to view the slides from Sally French Tyler's Presentation.