Treffers, Bram (2022) Real estate investments in the Dutch public healthcare sector. Master thesis.
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Abstract
The healthcare sector in the Netherlands is facing a large investment challenge in the coming years. Up to € 6 billion of investments per year will be necessary, while many organizations do not have the financial opportunities to make these investments. Margins have been declining for years and many healthcare providers are dependent on their reserves. Modern portfolio theory suggests that income diversification could lead to a more optimal and less risky business model, generating higher or similar results with less risk. This could lead to a higher level of real estate investments. In this context, this dissertation analyses how income diversification by healthcare providers influences the real estate investments that these firms make. Possible effects are estimated with an ordinary least squares regression model, from a dataset containing financial information about 582 large healthcare firms in 2020. The main independent variable in this dissertation is a Herfindahl–Hirschman Index that measures the magnitude of diversification of the income, scores ranging from 2,500 points for perfectly diversified firms to 10,000 points for firms that gain all of their income from one source. The results indicate that for each point increase on the Herfindahl-Hirschman Index, the dependent variable decreases with 0.0117%. This suggests that firms with less income diversification invest less in their real estate portfolio, which is consistent with literature on the topic. The findings of this study may inform the design of public policies with programs or incentives to stimulate strategies related to income diversification of healthcare firms.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Daams, M.N. |
| Date Deposited: | 12 Sep 2022 10:53 |
| Last Modified: | 12 Sep 2022 10:53 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/4047 |
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