REITs and Healthcare Real Estate Acquisitions

Interesting news item regarding the acquisition of St. Vincent Medical Office Building in Cleveland by Grub & Ellis Healthcare REIT II. Their list of acquisitions is growing. I've also been looking at growth in a variety of other healthcare REITs including HCP. There certainly will be a growing need for physical space in which to render patient care and house staff. REITs have been buying a variety of properties including medical offices, professional buildings, hospitals, and large tertiary care facilities. I'm interested to see how these healthcare real estate deals will be impacted by changes in health economics and policy. My primary concern is the potential impact of lower reimbursements on healthcare entites who occupy these spaces, and whether occupany and lease rates will suffer as a result. These REITs likely have developed strategies to deal with these future uncertainty, but the spectre of change still looms.