Healthcare Provider Post-COVID-19 Strategies

Q2 2020 Healthcare Capital Markets Report

   85% Of Healthcare Executives Planning Aggressive
   Cost Cuts to Lessen Financial Impact Of COVID-19

Health systems are continuing to take urgent steps to mitigate the financial losses caused by the COVID-19 pandemic. A recent survey shows 85% of healthcare CFOs are planning significant reductions in expenses. Health system CFOs noted they have already begun cost reduction efforts, such as vendor renegotiations and reduced staffing, and plan to look to real estate cost savings opportunities including asset optimization and improved ambulatory access in the months ahead.

   June 2020 M&A Spotlight: Mid America Clinical
   Laboratories Acquired
Commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Quest Diagnostics acquired its joint venture partner interests in Mid America Clinical Laboratories, the largest independent clinical lab in Indiana. Mid America Clinical Laboratories was formed as a joint venture between Quest Diagnostics, Ascension St Vincent and Community Health Network. 

   Elective Surgery Volume Near Normal in Late July,
   Analysis Finds
   $922M in MOB Transactions Closed in June 2020

Fifty-four medical office building transactions closed in June, totaling over $922 million and 2.55 million square feet. California had the most medical office building transactions with seven sales (13.0% of total), followed by Texas with six sales (11.1% of total). The average deal size was $20 million. 

Todd Perman, CCIM
Vice Chairman
Global Healthcare Services

Global Healthcare Services
Newmark Knight Frank
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