Turner: Part of the challenge is that today’s patients want a different recovery experience and better outcomes than what has been offered in the past. They want the most cutting-edge care—contemporary solutions designed to get them well and get them home as efficiently as possible, but they don’t want to sacrifice design and comfort to get it. In addition, health care is often data rich, but information poor. We have had to reinvent ways to track data and outcomes so people can really see results in a way they understand.
Hortz: What are you doing differently in running this company over other competing and incumbent firms?
Turner: Mainstreet’s dedication to purpose-built design and to creating innovation and disruption in the industry have really set us apart from other developers and operators. We’re not just recreating buildings from an outdated model. We’re questioning everything as we go—making sure we’re creating facilities that are not only capable of addressing the needs of high-acuity patients but that also offer beautiful and comfortable surroundings in which to recover. In addition, we take a comprehensive approach to our strategy incorporating all stakeholders in the process and considering all aspects of a patient’s journey from home to the hospital and back again.
Hortz: Tell me about Mainstreet’s Rapid Recovery Centers (RRC)? How are they an example of your purpose-built design?
Turner: RRCs are short-term, post-acute care recovery centers. Rather than sending patients home too soon and risk hospital readmission, keeping them in the hospital longer than necessary, or sending them to a facility that might not be best suited to their needs, RRC offers a new option. With purpose-built facilities meant to address the needs of high-acuity patients—including telemetry and hospital-grade oxygen, among other things—RRC offers a new model for many patients whose needs have not previously been addressed by the health-care industry. Because we have designed our buildings specifically to serve this purpose, we truly do stand at the crossroads of real estate and health care, working through both industries to improve the lives of those we serve.
Hortz: Why is this area a good investment for investors? Why is transitional care important from an investor’s perspective?
Turner: What we’re seeing in health-care real estate is that the aging of the baby boomers means there’s a real need for increased care options. From short-term, post-acute care to long-term assisted living options, as the largest segment of our population ages, the growth in this sector continues to increase. We believe this makes health-care real estate an excellent investment for many types of investors. In addition, health systems and insurers continue to increase demand for new post-acute options to solve their existing problems. This tells us that this part of the industry is a great place to invest right now.
Hortz: What emerging changes and trends do you see further developing in the real estate industry?
Turner: Given the new and increasing market demands, health-care real estate has become a more widely-recognized asset class in the investment community. We believe this trend will continue with health-care investments becoming more and more a “core” investment. With the rise in potential buyers combined with reimbursement pressures on the operational side, we predict a rise in demand for new, healthcare-specific developments.
Hortz: What advice would you give financial advisors who want to keep up on new real estate opportunities for their clients?