Joel Swider: Thanks everybody for joining today. I’m Joel Swider and I’m the co-chair of the Real Estate Service line here at Hall Render. And I, I’m very excited to be joined today by Kristin Herrmann, who is a director of real Estate valuation at VMG Health. So Kristin, thanks for joining.

Kristin Herrmann: Thanks for having me today. Joel VMG is a leading industry leading consulting and valuation firm that specializes in healthcare and works with health systems across the country. We’re licensed in most of the states, and we work all over the country with different types of valuation and consulting. I am specifically in the real estate department for our webinar today. We’re going to focus first on the challenges that are facing healthcare systems in 2025, and then we’re going to move through toward opportunities that we can look forward to. And that’s in 2025. And I’ll pass it over to Joel. Joel, you want to kick us off here?

Joel Swider: Yeah. So what are the challenges? We will walk through a few of them here and then as Kristin noted, give some strategies for how these can be turned into opportunities for our hospital and health system clients. The first one here, and you’ll see if you’re watching this live, we pulled some really great charts and graphs from a variety of sources, and I believe that the slides should be available in the chat as well. But this slide here shows that among nonprofit and governmental, which means really municipal type hospitals, not VA hospitals, margins are really tight. They have been for some time. So this is a struggle, I think across the board. It’s sort of that saying no margin, no mission, right? We see in the for-profit sector, which is a minority of the US hospitals, according to the A HA, they have about a 14% margin, which may or may not be accurate. It sounds high to me, but you can see in the nonprofit and governmental sectors, margins are more like three to four, four and a half percent. So this creates a lot of challenges for hospitals when it comes to real estate. How can you grow and how can you vision for the future when the margins are not there and the patient population continues to be m