Replies to post #129582 on Supurva Healthcare Group Inc (SPRV)

[dss19552002]

I'm not sure what the problem here is. There may be an effect on the medical office building business because of telemedicine, but doctors will still need offices. The insurance industry may require more telemedicine, as the overhead of those visits could be less, and thus smaller insurance payouts. Doctors may then need smaller offices and suites as they don't need as many exam rooms for routine care.

Yet, blood work can't be done by telemedicine. There is no substitute for actual physical exams. Some exams can't be done remotely. Some treatments can't be done at home, but need to be done at medical facilities. So, your point about negative impact not necessarily stopping something from existing seems right on.

I wouldn't expect much of an impact in the near term anyway, as it will take years to sort any such change out, if indeed there is an impact. It's an interesting issue, but it's too early to say exactly what the effects will be. However, for long-term investors in Medical Office buildings, and their REITS, it's worth watching.

[Moving On]

Medical office buildings comprise approximately 10% percent of the US office sector. These buildings are typically about 40,000 square feet and range from small physician offices to large healthcare systems. Investors are attracted to this asset class due to its stability and positive forecasts for a strong performance.
According to the American Hospital Association, the number of ASCs and hospitals are almost equal with 5,534 hospitals and 5,532 surgery centers. While hospitals have declined by 5%, surgery centers have grown as much as 82% since 2000.