DAG Healthcare differentiates itself from its competition in three key areas:
First, DAG Healthcare is focused on long-term relationships to ensure maximum returns.
Many healthcare executives have entered into “strategic partnerships” with facility purchasers whose primary objective is to optimize the short-term return to its investors. Focusing solely on short -term investment returns, these purchasers often overlook the more lucrative long -term investment opportunities presented by working in concert with the hospital to achieve its goals of fostering “win-win” relationships with its physicians. DAG Healthcare helps hospitals foster healthy relationships with its physicians by offering physicians well -maintained clinical environments for a reasonable cost and ownership opportunities in medical office buildings. In appreciation, hospital systems invite DAG Healthcare to participate in additional investment and develop opportunities to solve other real estate objectives. DAG Healthcare views this “relationship driven” approach to business as profitable and responsible, and aligns with progressive healthcare systems that feel the same.
Second, DAG Healthcare structures medical office developments and acquisitions to sustain the long-term commitment of physician tenants… the number one goal of our hospital partners.
The flood of capital into the medical office industry allows many purchasers today to offer high purchase prices for medical office buildings. On the onset, these lucrative sales may entice healthcare executives seeking funds for hospital expansion projects. However, to compensate for stretching purchase prices, these purchasers must rapidly accelerate escalations in lease rates and expense reimbursements to achieve promised returns to their investors. This process angers physician tenants who are then likely to seek tenancy in medical buildings tied to competing hospitals. Hospital administration, if they are not careful, may end-up with diminishing physician referrals for the expanded hospital services that triggered the sale of their buildings in the first place. This is counter-productive.
Conversely, at DAG Healthcare, we purchase and develop healthcare facilities using sound real estate fundamentals, employing capital resources that understand the unique relationship between doctors and hospitals. Although competitive, DAG Healthcare does not overpay for properties. As a result our physician tenants experience modest rent and expense increases justified by inflationary pressure and/or elevated value and services that DAG Healthcare management brings to its buildings. This approach helps anchor physicians to our clients’ hospital campuses, increasing utilization of our clients’ services.
Third, DAG Healthcare is selective over the hospital systems that it chooses as partners to avoid conflicts of interest and protect our partners’ interests in markets they serve.
DAG Healthcare chooses its hospital partners carefully to insure that either their initial building portfolio sale or their additional sale or development pipeline is sufficient to satisfy DAG Healthcare’s long-term expectations in that market.
Other developers and purchasers half-hazardly purchase facilities from a hospital to satisfy purchase quotas, assuming the flexibility to pursue competing medical facilities in the same market should the pipeline of future opportunities for that hospital not be sufficient to satisfy their investors desires.