Denver, CO · Member since 2026 · 25 posts · 10 votes
Some Medicaid eligibility changes took effect October 1, with additional changes expected early next year.
While the demand for healthcare isn't going away, changes in coverage could affect how different specialties operate and where their revenue comes from.
For medical office owners and investors, that raises an important question: Are you looking more closely at tenant mix and payer exposure when evaluating a property, or is it still too early to know what the impact will be?
I’d definitely pay attention to tenant mix and payer exposure. Healthcare demand may be strong, but that doesn’t mean every medical tenant is equally protected from changes in reimbursement. I’d want to understand how dependent the tenant is on Medicaid and whether the lease and tenant financials still make sense if reimbursement changes. That’s just another piece of risk I’d want to understand before investing.
depends on what side of the med office asset you are in, we are still seeing pretty high rates of growth in rural markets and medically underserved markets in the remote ED and urgent care spaces, but these are specific operators who generally consider different metrics than a standard urban or suburban retail play. most of those operators are looking at average reimbursment rates, and populations within the trade area being considered. but in general those users are not "targeting" high medicaid areas. though to the other points here its really going to be the reimbursement rates that dictate things.