Becker's Healthcare November 1, 2024
Arjun Gangakhedkar, real estate and financial specialist for the recently formed ASC chain Ker Medical and principal at QHM Partners, joined Becker’s to discuss two major risks to ASC real estate development.
Owning vs. renting
While the structural impediments to ASC development are few, “practices should be cautious when considering purchasing real estate for a surgery center,” Mr. Gangakhedkar told Becker’s.
“Real estate can quickly consume their entire capital budget, leaving less for staffing, technology and recruitment,” he said. “Owning isn’t always necessary; sometimes leasing makes more sense, especially in tertiary markets with low potential for capital appreciation.”
Once physicians enter into the real estate ownership side, there’s a “different conversation with different considerations,” he added, like site selection...
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