Congress would be wise to pay attention to parts of the health-care reform act that encourage jobs and spur the medical office building (MOB) market.
Health care and jobs appear to be near the top of the agenda when the new Congress gets to work in January. We at Commercial Real Estate Group of Tucson hope all members see, as we do, the relationship between the two.
The current health-care act, often called Obamacare, will create a booming demand for health services as millions of people qualify for health insurance and can better afford health care. Doctor visits, prescription drug use and preventive testing all are expected to increase. They’ll generate demand for a workforce to staff increasing numbers of doctors’ offices, hospitals, drug stores, medical-device manufacturers and other health-related fields.
That future workforce needs to be trained, which in turn will create demand for programs. Places in Tucson like the University of Arizona, Pima Community College and trade schools may consider space expansion to provide workforce training.
Filling Tucson’s medical office space
All of this increased activity will need medical office buildings, retail office space and industrial space to house them. That could mean filling some of the small supply of vacant medical office space in Tucson that currently exists, as well as available space in other categories of commercial real estate. It could encourage construction of medical campuses and doctor and outpatient-surgery centers.
It’s hard to tell if these responses to a new health-care system will be significant, especially since an aging baby boomer generation is creating a big demand on its own. It will take a long time to see whatever effects occur since the act’s provisions are phased in over the next four years. And the reform itself will likely be reformed. That could change these observations.
We hope that as Congress continues to grapple with fixing our health-care system—and it desperately needs a major overhaul—it recognizes that portions of the current law address more than the health of individuals. It can make our economy healthy, too.
Commercial Real Estate Group of Tucsonspecializes in representing tenants and corporate users across the United States. For more information call 520-299-3400.