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Medical/Healthcare Centres

Discussion in 'Commercial Property' started by iDex, 19th Jul, 2015.

  1. iDex

    iDex Active Member

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    Hi everybody,

    Just posting to see if anyone has experience in setting up commercial properties for medical/healthcare purposes?

    Are there issues with finding tenants or any issues to consider before jumping in?

    Cheers!
    Dex
     
  2. Chilliblue

    Chilliblue Well-Known Member

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    My main course of income these days.

    Heads up medical specialists tend to prefer to town their own properties
     
    Last edited by a moderator: 5th Aug, 2015
  3. Pistonbroke

    Pistonbroke Well-Known Member

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    Mobs like IPN own several in every suburb with the right facilities.
     
  4. Chilliblue

    Chilliblue Well-Known Member

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    Those properties are leased as are most of Primary Health, Ramsay Health and more.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    IPN's model is to buy the leasehold and to sublet to several doctors/specialists etc AFAIK.
     
  6. iDex

    iDex Active Member

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    @Scott No Mates does IPN readily look for opportunities to lease? Do they require a minimum size of commercial footprint?

    Also does anyone know how the cost to lease out a commercial block for medical purposes is calculated?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    • They buy existing practices then rejig.
    • Poke the pig & hear if it squeals. As a roughy - what is the space worth as office/retail/existing use? Add the fitout + all other costs then run a DCF. This is a glorified serviced office service where the doctors pay for their surgery and all the other business units are tacked on (reception, nurse practitioner, facilities etc).

     
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  8. iDex

    iDex Active Member

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    Sorry I'm rather new, whats a DCF?
    So are you saying it would be better to find doctors to lease from you rather than look for a big medical centre chain to lease from you? @Scott No Mates
     
  9. Chilliblue

    Chilliblue Well-Known Member

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    iDex, DCF = Discounted Cash Flow.
    Essentially its a more accurate method of analyzing commercial income.

    With regards to IPN, they buy their GP's to service their practices. By that I mean that they pay a lump fee to bring the doctor on board for a fixed period contract and all income generated by that doctor has a fixed amount paid back to IPN. As Scott stated, it works similar to a service office.

    IPN being owned by Sonic Healthcare would also include a pathology collection point (and sometimes a lab) to adjoin the practice.

    From their, if they have any spare space, they then would be open to sub leasing to chemists and ancillary services such as optical, dental etc.

    This is how all the major players work.

    Over the last few years, the larger medical companies have taken to purchasing entire existing practices (and in some instances several to be merged) to be placed under their umbrella as the method of expansion.

    It would be an extremely rare event for them take on a leasehold and then look for the GP's to contracted and any potential sub lessee's.
     
  10. ej89

    ej89 Well-Known Member

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    What do you do for work Chilliblue?
    I work in a medical centre and I pay a percentage of my income to the medical centre. It's usually around the 20-30% mark. To get a doctor on board we have to either be lucky to find one or pay a company to get us a doctor.
     
  11. Chilliblue

    Chilliblue Well-Known Member

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    Self contract with my main focus being a multi national property company, an Australian Trust and several smaller independent medical and ancillary clients and property developers. Have worked for IPN hence I understand Sonic's business model.
     
  12. Navid H Guia

    Navid H Guia Well-Known Member

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    How big a medical centre are we talking?
    My mates mum owns 6 and is now opening a care clinic. Interesting breakdowns and what to look for lists depending on size.
     
  13. Chrispy

    Chrispy Well-Known Member Premium Member

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    I spend a lot of time in suburban Dallas, Texas, during the last couple of years I have noticed Emergency Centres opening They are popping up everywhere. I expect its only a matter of time before they turn up in every suburb here.
     
  14. Chilliblue

    Chilliblue Well-Known Member

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    Chrispy, there is also an influx of Western style medical centres and hospitals being opened in Asia and other countries such as Russia.
     
  15. Chrispy

    Chrispy Well-Known Member Premium Member

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  16. Chilliblue

    Chilliblue Well-Known Member

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    These types of practices are what the government was trying to model when they tried to introduce private GP practises alongside public ER's at the major hospitals.

    I know that they work well and are generally accepted in the US. Have you ever used one?
     
  17. Chrispy

    Chrispy Well-Known Member Premium Member

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    I haven't but I know people that have. They tell me they are expensive.

    The biggest problem currently is the hacking of the medical records at the Hospitals. The Dallas Hospitals were hit pretty hard.

    It appears that the Social Security Number and the Medical Fund details are being sold on the black market. Where this becomes a problem is the person buying the medical fund details uses it to have an operation. Fills in the admittance form at the hospital and states they do not have an allergy to anything. The Medical Fund does not know it is not the actual payee making the claim through the Doctor and pays it. When the real Owner goes into Hospital they may be allergic to say antibiotics but the previous form says all OK. Apparently there have been a number of these occurrences in the past year.
     
  18. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    As a side note you can potentially finance 90% IO or 95% P&I on this sort of stuff.
     
  19. MTR

    MTR Well-Known Member Premium Member

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    that's interesting:)