MedEquities Says Fundamentals “Pretty Good” in Most Health Care Segments

John McRoberts, chairman and CEO of MedEquities Realty Trust, Inc. (NYSEMKT: MRT), participated in a video interview at Nareit’s REITweek: 2018 Investor Conference in New York.

McRoberts said the acute and post-acute health care segments in which the REIT operates continue to present opportunities. “Fundamentals are pretty good.”

Skilled nursing, while not offering the same sort of opportunities, is showing signs of stabilization, according to McRoberts. “We think there’ll be some good news coming out of that sector in the next year or two,” he added.

McRoberts underscored the strength of MedEquities’ balance sheet, which is helping the company weather the reduced access to capital caused by the decline in health care stock prices.

Turning to the regulatory front, moves toward a patient-driven payment model will initially be felt primarily in skilled nursing, according to McRoberts. “I think it’s a good thing because it’s moving away from trying to monitor and document units of service delivered within a facility and shifting toward total outcomes,” he said.

While regulations have yet to be finalized, McRoberts said that if operators can get out in front of the changes, “they’ll be fine.”