In her 2020 article published in The Actuary, actuary Joan C. Barnet breaks down the key factors contributing to the healthcare crisis in the U.S.
“The United States fares unfavorably relative to comparable countries in health care spending, quality and access. Although many have been able to manage quite well under the current system, the situation always has been nothing short of a crisis for those without access to affordable health care.”
Now, in the latter half of 2022, it seems that the crisis in equitable access to healthcare is finally getting some long overdue attention from the U.S. government. Earlier this year, the Department of Health and Human Services announced a $60 million investment in improving access to quality healthcare for people who live in rural areas and in October, the USDA awarded $110 million in grants to improve health care facilities to help build, renovate, and equip health care facilities like hospitals and clinics in rural areas.
While these are encouraging signs, government resources alone cannot provide the kind of systemic change required to fully resolve the myriad issues that contribute to healthcare inequality. It will also take passionate, committed advocates with access to private investment, who understand both healthcare delivery systems and commercial real estate investment, to create sustainable solutions for fair and equitable healthcare delivery. Meet the MacFadyen twins.
Unlikely Champions for Equitable Access
Identical twins, Alex and Chris MacFadyen, grew up in Providence, Rhode Island. With curly-red hair and wide grins, they may not be the stereotypical image of passionate advocates for equitable access in healthcare; but looks can be deceiving.
In college, Chris followed in his interest in politics and policy making, including a stint in the Rhode Island State House working on healthcare and renewable energy issues. Later he returned to school to pursue an advanced degree in Healthcare Administration at the University of North Carolina-Chapel Hill, leading to a position as Director of a major Boston-based healthcare system.
Alex’s interests ran to small business management in commercial real estate and construction. Working in a family construction business, Alex became a certified Commercial Real Estate Appraiser and later attended Skidmore College earning a double Masters’ degree in Business and Technology.
Ensconced in their individual careers, neither twin could foresee that a personal healthcare emergency would bring their diverse talents together to form a new business venture founded on a mission to solve healthcare delivery access through real estate investment.
The Mother of Invention
When a close family needed specialized healthcare, the twins discovered, like so many others, that getting essential care is not always simple or convenient. In fact, they had plenty of time to think about the deficiencies in healthcare delivery during the hours long road trips to get their loved one the care they needed. From these ruminations arose the idea of combining their talents to create a business that could fulfill the needs of healthcare providers and patients and still provide attractive returns for real estate investors. Welcome to MM2.
Combining their unique perspectives, Chris and Alex developed a business plan to prove that, by understanding the intricacies of both, it is possible to bridge the worlds of healthcare systems and commercial real estate, through private investment, and delivers value to all parties while improving healthcare access for patients.
The MM2 Difference
Medical office buildings (called MOBs) have long been a favorite of real estate investors due to their stable tenants and relatively secure revenue streams. However, decades of consolidation by healthcare systems have created densely packed “galaxies” of ambulatory care providers clustered around a central hospital or care facility. These market dynamics have tended to drive up the real estate values of MOBs in the local area. Commercial real estate investors, looking to capitalize on these rising values, often “price out” healthcare providers looking to purchase in that area since they typically operate on leaner margins and cannot compete with other commercial enterprises, further exacerbating the problem.
MM2 takes a holistic approach to healthcare real estate investment. As healthcare systems, individual providers or provider groups turn their attention to expanding into new markets, MM2 provides investment capital to purchase, fit out, or even fund new construction of facilities. Prior to any investment agreement, Alex and Chris carefully vet the facility from both a real estate perspective and as a financially viable healthcare tenancy model. This unique 360° due diligence makes sure that today’s investments in healthcare delivery in underserved communities is sustainable and support future growth.
Doing the right thing. Doing it first. Doing it well. That’s the MM2 story.
