Health care REITs to benefit from insurance overhaul

03/24/2010 | Wall Street Journal, The

The overhaul of the nation's health insurance laws will result in an increase in demand for medical office space now that 32 million additional people are expected to enter the system. On the negative side, new taxes on rental income will need to be factored in. Health care REITs are expected to benefit overall, though. "We all know that demographics support health care real estate," to Ventas CEO Debra Cafaro said. "But adding to that demand from an aging population, now you're going to have higher utilization because you're going to have a pool of uninsured people having access to the health care system."

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