Liverpool, New York, May 20, 2021 – McapMediaWire – Supurva Healthcare Group, Inc. (OTC Pink: SPRV) reports that during the first quarter of 2021, John Murphy, the Company’s Chief Executive Officer, met with executives from healthcare systems, medical practice executives, and real estate developers, located primarily along the East Coast of the United States, and there was a clear consensus that there is pent-up demand for medical office buildings (“MOBs”). Both hospitals and medical groups are looking for lower cost ways to consolidate medical offices into larger outpatient care centers offering ambulatory surgery centers, urgent cares and sophisticated diagnostic and treatment facilities.
While the Covid-19 pandemic has dramatically reduced service provider revenues for 2020, federal and state financial assistance programs helped these companies maintain a strong balance sheet. Hospitalsandmedicalpracticesthatstarted2020inastrongfinancialconditionallfound themselves on solid financial footing one year later and remain poised to use their capital reserves for expansion into MOBs. Outpatient and elective procedure volume have not fully recovered from pre-Covid levels, but the trends are all steadily improving and both medical service providers and healthcare systems are once again moving forward with their expansion plans.
The Covid-19 pandemic impacted all areas of the healthcare industry. Healthcare systems and medical service providers were able to maintain good cash reserves enabling these providers to renew or extend lease terms in return for generous tenant improvement allowances. With more favorable rental terms and increased cash flow, service providers are now looking to expand their operations. The Company’s MOBs can offer generous lease terms, economies of scale, superior locations for health systems and medical practices.
Reflecting upon the current economic environment for MOBs, the Company’s CEO remarked, “with an aging population, the shift to ambulatory medical office buildings is booming. The opportunity for Supurva in this sector will remain strong as the imbalance between hospitals and health systems needs for facilities and the capital sources it has available will continue. The health systems will prioritize capital for hospital core assets and create additional opportunities in the medical office building sector for Supurva.”
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thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the Company’s business and financial results is and will be included in the Company’s filings with the SEC.