Physicians Realty Offering “New Level of Service” in Medical Office, CEO Says

John Thomas, president and CEO of health care REIT Physicians Realty Trust (NYSE: DOC), joined REIT.com for a CEO Spotlight video interview at REITWorld 2016: NAREIT’s Annual Convention for All Things REIT at the JW Marriott Phoenix Desert Ridge.

Physicians Realty was an active acquirer of properties in 2016. During the year, the company closed on a $700 million deal that Thomas described as “the largest transaction ever in the medical office space.”

As the company integrates assets into its portfolio, the focus is on offering “a new level of service,” he said.

Integrating buildings and alleviating tenant fears of rent increases are areas of focus, Thomas said. He added that the company leverages its success in past transactions to convince additional hospitals to sell their buildings to Physicians Realty.

Looking forward, Thomas said he expects the medical office  sector to be a “real winner” due to demographic trends. He noted that 11,000 people turning 65 every day, meaning more demand for medical care.

At the same time, both the government and commercial insurers are trying to place health care within the lowest cost setting to save tax dollars and improve the quality of care, according to Thomas.

“It continues to be an exciting time for medical office,” Thomas concluded. As for possible changes to the Affordable Care Act under the new administration, “we’ll have to see whatever replacement legislation affects hospitals, and be very cognizant of that,” he said.