Is Physicians Realty Trust Stock a Buy?
The baby boomers are cresting into retirement. In a nutshell, that's the big reason to like healthcare real estate investment trusts (REIT) like Physicians Realty Trust (NYSE: DOC). The company's cute ticker symbol highlights exactly what this REIT owns: medical office buildings that house things like doctors' offices. This is a niche of the healthcare property market that has been increasingly in demand, with even the largest and most diversified players looking to build up their office portfolios. So is office specialist Physicians Realty a buy? Here's what you need to know.
Hospitals aren't the focus they used to be in the healthcare space. It is expensive to put someone in the hospital, especially when a service could be performed just as well in a smaller facility, or just in a doctor's office. Increasingly, in an effort to reduce medical costs, patients have been pushed out of the hospital into other venues whenever possible. To put a number on that, between 1994 and 2016 inpatient care fell from 72% of medical revenue to 52%. Outpatient revenue, meanwhile, increased 70%, going from 28% to 48% over that span.
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Source Fool.com
