Are healthcare REITs a cheap source of capital?

Many not-for-profit healthcare institutions are using REITs as a new source of capital. These institutions are finding REITs an attractive source because they provide 100 percent funding, reduce the responsibilities of hospital management, and allow access to a new base of capital. However, to be a source of capital, REITs require the sale of the institution's assets. This transfer of ownership can create significant differences in the management of the healthcare institution that might not be a welcome change.