Case Study: Management

Regional Health System

Challenge

Stabilize the operations and management of a regional health system’s 1.2 million square feet of medical office property. The client’s objective was to put in place a management team that could:

• Immediately address crisis issues
• Provide management stability on a day-to-day basis
• Develope and implement strategic plan initiatives

Our Approach

In order to understand and prioritize what issues required immediate attention and resolution, we interviewed key stakeholders, including hospital and physician company management. From those interviews RTG created a comprehensive action plan and timeline.

RTG inserted an on-site management team and immediately met with all key stakeholders, including physician tenants, hospital administrators, vendors, and physician company managers, with the goal of introducing a “service focused” approach and providing a single source contact for all property issues.

Working with legal counsel and management, RTG established a policy for executing lease agreements, implemented a process for collecting past-due rents, developed templates for tracking and managing property lists and rent rolls, established a leasing and marketing strategy, implemented a tenant build-out oversight process, and managed building financials.

Relying upon the real estate strategic plan, RTG created action plans and timelines for implementation. These activities included divesting the system of some joint venture relationships, disposition/reposition of underperforming properties, outsourcing the property management functions long-term, negotiating the acquisition of key properties, and implementing specific operational policies.

Success

Over the course of 18 months, RTG was able to stabilize operations, successfully manage the portfolio, and create stakeholder confidence in the ability of the overall department. In addition, we positioned the portfolio and the property management department to be seamlessly transitioned to a local outsourcing firm.