Medical Office Feasibility Study in Colorado

Colorado physician practices at a national-size median

Colorado's physician office loans sit almost exactly at the national midpoint: the median of $350,000 is 1.02x the class median nationwide. The state ranks 11 of 53 on 173 loans and $137.2 million over FY2017 to FY2026, and medical offices place 11 of 39 among Colorado classes, with a location quotient of 0.85x, below their national weight. No figure is distinct when the median and the cancellation and loss rates are set against Colorado's SBA record and against physician lending nationwide.

B:Side Capital, the banks and the Front Range

The spread of Colorado loans is wide, half of them falling from $125,000 up to $1.1 million. Of the 173 loans, 148 went through 7(a) and 25 through 504, where B:Side Capital holds 22 worth $29.6 million. Wells Fargo Bank National Association holds 16 Colorado loans for $12.0 million. The Huntington National Bank holds 12, as did Newtek Bank, National Association, while Live Oak Banking Company and JPMorgan Chase Bank, National Association hold 9 apiece, those of Live Oak Banking Company worth $16.7 million. Franchising is minor at 2.9%. Arapahoe County leads with 32 loans, then Denver with 26, Jefferson 20, El Paso 17, and Douglas and Larimer 15 each.

Cancellations are the larger Colorado risk

Cancellation removed at least 15.9% of the physician loans Colorado approved in FY2017 to FY2024, rising to 18.2% if undisbursed loans count. Charge-offs are lower but real: 4.2% of the 71 Colorado practice loans funded from FY2017 through FY2021, and 2.8% within five years, both floors. For a borrower, the cancellation rate shows that a share of approvals never fund, and a study that settles partners, leases and payer contracts early helps. For a lender, the later losses mean the study should cover the whole term.

A Colorado medical office study has to test patient demand for the specialty in the draw area, the physicians and health systems already competing, and the payer mix that will set revenue. Cost covers build-out to clinical standards and equipment, plus the building itself when Colorado 504 money is involved. Coverage of the payment should be shown after the physician owners' compensation and under conservative reimbursement. The appraisal will treat an owned clinic as medical office space, so the study ought to state the property's worth to another medical tenant. No coding caveat applies to the class ; it covers physician practices, not every kind of clinic.