FROM STRATEGIC ASSETS TO TACTICAL INVESTMENTS - CHANGING ATTITUDES TOWARD MEDICAL OFFICE BUILDING OWNERSHIP

Cain Brothers, August 10, 2003

Physicians are a hospital's sales force. Today's environment, however, has changed the underlying foundation for direct ownership of the space those physicians occupy. New transaction structures that provide for third-party ownership of a hospital's medical office building(s) ("MOB") now allow hospitals to retain critical aspects of control. Changed attitudes on the part of owners, operators, and lenders, as well as new entrants to the MOB sector, mean there is more competition to acquire MOBs coming to market, translating into higher valuations. This Strategies in Capital Finance surveys the current hospital-MOB landscape and makes suggestions for how to handle MOBs and other similar real estate. www.cainbrothers.com (PDF format - click here to download the latest version of acrobat reader)