Medical Office Feasibility Study in Hawaii

Physicians' offices in a small island market

Hawaii shows 29 loans for medical office, specifically physicians, from FY2017 to FY2026, worth $19.9 million in gross dollars. By volume the state ranks 39 of 53, a low position that reflects its size. Inside Hawaii, however, the class sits fifth among the 39 classes ranked inside Hawaii, and a location quotient of 1.30x means physicians' offices claim a heavier weight in Hawaii's SBA approvals than in the nation's. For a physician weighing an island practice, that is a sign the class is familiar to local lenders even if the sample is small.

Loan size, program split and where the loans are

The median loan is $308,000, which is 0.90x the typical practice loan elsewhere, while the central band extends from $150,000 to $650,000. SBA 7(a) carries 19 loans and SBA 504 carries 10, so real estate financing is a real share of the record. Franchising is 0.00%, as one would expect for independent practices. Central Pacific Bank holds 7 of the 7(a) loans, worth $1.7 million. Honolulu County has 18 loans, Hawaii County 7, Maui 3 and Kauai 1, so the record is concentrated on Oahu but not exclusively.

Outcome rates that stay unpublished

Few Hawaii loans stand behind either outcome measure, so neither rate appears. We show nothing rather than a misleading figure, and no reader should supply a zero. A lender wanting evidence on outcomes should look at the broader pages for the class nationally, where the cohorts are large.

What to test for a Hawaii medical office

A feasibility study should measure the patient base a specialty can draw on a single island, since a physician cannot easily cover a second market by road. It should test payer mix and the reimbursement a practice can expect, the staffing needed to open full-time hours, and the cost of building or leasing medical space in a market where construction is expensive. The coverage ratio ought to be shown at partial utilisation during the ramp. The appraisal of an owned suite will turn on the rent a successor physician would pay, so the work should identify who else could use the suite.