Rethink Healthcare Real Estate has acquired six micro-hospitals under Baylor Scott & White Health in the Dallas/Fort Worth metroplex area of Texas.
Containing an average of eight to 10 short stay beds, micro-hospitals are small inpatient facilities that provide simple acute and emergency services often performed in big hospitals.
An alternative to long waiting lists in large hospitals, they are located in underserved areas that lack the resources to support a full-service facility, according to Emerus
, which operates 20 across the U.S., including the six Baylor Scott & White Health facilities.
Recently rebranded, Rethink Healthcare Real Estate was formerly known as Seavest Healthcare Properties. It financed the acquisition through a joint venture with Heitman LLC, a global real estate investment management firm with over $53 billion in assets. It also appointed CIT, a division of First Citizens Bank, to arrange for $58.9 million to finance debt.
“These emergency hospitals provide critical access points for healthcare needs, including overnight stays. Many of the facilities are complemented by additional clinical space where Baylor-aligned physicians provide nonemergency services such as primary care,” said Jonathan Winer, senior managing director and chief investment officer of Seavest.
Operating for seven years, the micro-hospitals are in Burleson, Colleyville, Keller, Murphy, Rockwall and Grand Prairie. Together, they encompass 189,385 rentable square-feet.
Micro-hospitals are becoming more common, with 19 states already home to such facilities, according to Emerus. Their growth comes in the face of larger-scale mergers and acquisitions between big healthcare systems.
The size of small, ambulatory surgery centers, micro-hospitals offer diagnostic services, imaging, labs and pharmacy services 24/7. They typically are located in two- to three-story buildings and unlike EDs, are fully licensed and have inpatient beds.
While priced higher than urgent care centers, they are significantly less expensive than full-service emergency centers or inpatient facilities, reports Patient Engagement Hit
, but abide by the same federal and state licensing and regulations as major hospital systems.
“We can offer quick service for any type of problem that walks through the door, you will receive the same care you would in a large facility,” said Dr. James Nichols, medical director at Baylor Emergency Medical Center at Aubrey, Texas.
Rethink Healthcare Real Estate is under contract to acquire a seventh one shortly.