The Foundation for Innovative Medicine is Real Estate

The Foundation for Innovative Medicine is Real Estate

Modern medicine is going through a transformation. Many providers and insurance companies are now offering access to treatments and practices that have seldom been used in professional medical settings. The industry has already seen a widespread adoption of medicinal marijuana. While psychedelic drugs — which have been used recreationally and medicinally abroad for decades are now being used medicinally as well.

In this article, we will be discussing the launch of Healing REIT. Which will provide the new foundation for clinics and clinicians to expand service lines and their footprints. The current health care infrastructure does not support the already, and soon to be approved, FDA novel therapies like Ketamine, MDMA and Psilocybin assisted therapy.

“I’m excited to finally announce this project. The REIT presents a tremendous opportunity for clinicians to expand their practices or add additional locations to provide these breakthrough therapies. It’s long been recognized that improving patient access is one of the largest challenges the healthcare system faces and this is a step to help address that challenge,” said founder and president Cody Shandraw.

Healing REIT will capitalize on this knowledge by gaining access to proprietary deal flow. As well as an in-depth understanding of the current and future trends in the industry. All of which allows them to place clinics in high demand areas, while also adding value to our tenants through thought leadership. 

Healing REIT works directly with Holistic Management Corp to focus on assisting clinicians to transition their practice to provide a wider variety of care to their patients. While also increasing revenue and patient retention. This is achieved through the additional value-added services that have higher margins and a greater level of patient retention. 

RELATED: Here’s How Clinics are Getting Ready for MDMA and Psilocybin

What Is a REIT? How Does Healing REIT Work?

REIT stands for “real estate investment trust.” A REIT is a company that invests in real estate that is expected to produce income over time. A large portion of REITs are publicly traded. This gives investors the opportunity to invest in a real estate portfolio, backed by assets that produce long term and stable income.

Healing REIT will commence as a private offering and will convert to a publicly-traded trust that invests in real estate designed for innovative medicine. Specifically, it invests in existing clinics where there is a demand for psychedelic treatment and other innovative treatment options. It also renovates or expands the spaces as needed to accommodate those new options.

“Healing REIT is perfectly positioned to acquire prime NNN leased real estate assets in A+ locations across the country at a very opportune time,” said Ty Zakovich, Founder & CEO. “Our team has worked tirelessly the past year establishing relationships with a wide variety of mental health clinicians so that we can provide immediate plug and play solutions for very well qualified tenants. We are dedicated to helping as many people as quickly as possible and will make an immediate impact on the mental health crisis facing our country.” 

What Does Real Estate Have to Do With Healing Clinics?

On the surface, it may seem like healing clinics that use alternative therapies could simply adopt those options at will. Unfortunately, that’s often not the case. And converting an existing clinic to one that provides psychedelic therapy and other innovative treatments often involves a total reworking of the medical practice.

For example, the use of MDMA to treat anxiety, depression, and post-traumatic stress disorder (PTSD) has shown great promise in recent years. Adapting MDMA treatment into one’s practice requires larger treatment areas that include enough space for the two mandatory therapists. And the addition of bathrooms to treatment rooms, as a single treatment session can last for eight hours or more.

Other treatments like hyperbaric oxygen therapy and ice baths for anxiety and depression have also been effective for many patients. These alternative therapies require additional space and resources for equipment as well.

In some cases, the high demand for psychological services and innovative treatment, in particular, are catalysts for clinicians to open new facilities entirely. Expansion into new locations is often even more expensive than adapting existing space to these novel treatment options. But the return on investment can be outstanding.

Whether clinicians are looking to adapt existing space or push into new cities or states, companies like Healing REIT can make the change possible. A real estate investment trust can connect individuals looking to invest in the rapidly expanding psychedelic treatment space with clinicians seeking the funds to expand and adapt their practices to meet the increase in demand for these services.

What Kind of Demand Is There for Psychedelic Treatment?

The medicinal use of psychedelic drugs like MDMA, ketamine, and psilocybin has grown immensely in the past few years. The adoption of this therapy is growing as more research is done to prove the efficacy of psychedelic treatments for anxiety, depression, PTSD, addiction, and other mental health issues. Healing REIT has already seen great success in its existing investments, and the future holds even more promise.

Based on industry trends, the estimated need for psychedelic treatment will continue to soar. And they expect an estimated 16,000 new MDMA facilities to be required by 2031 to keep up with the demand. Considering the rapid growth of the medical marijuana industry, these estimates aren’t surprising.

Clinics offering other psychedelics for therapeutic use—including ketamine and psilocybin—will also be required. So the future demand for adapting clinics is expected to be massive.

Are Psychedelic Treatments Covered by Insurance?

Just like with any medical treatment, the eligibility for psychedelic therapy will vary among providers and based on the individual patient. Determining whether a specific patient can get coverage for the services Healing REIT is focusing on needs to be done on a case-by-case basis.

With that being said, we have seen some major insurance companies begin to provide coverage for psychedelic treatments. Some Blue Cross Blue Shield licensees announced eligibility for ketamine use for treatment-resistant depression (TRD), as did licensees of the Post-Employment Health Plan (PEHP) and several other providers.

This is promising for psychedelic therapy in America. Much like medical marijuana, we expect additional insurers to cover psychedelic treatment in the future.

The Future of Using Ketamine and Other Psychedelics for Medical Treatment

Psychedelic drugs have a promising future ahead of them. Especially as more and more research affirming how effective they can be for treatment-resistant mental health issues.

For example, with proper integration, ketamine use in clinical studies has shown to provide faster and longer-lasting results than more traditional treatments for depression. Similarly, decades of research suggest that psilocybin—the psychedelic compound in magic mushrooms—holds potential for treating numerous psychological disorders, including depression.

MDMA has been used successfully to treat a myriad of anxiety disorders quickly and with lasting effects as well. Incredibly, around two-thirds of PTSD patients who received MDMA therapy in a recent study no longer maintained that diagnosis after treatment.

With all of the research that is pointing to the potential for medicinal use of psychedelic compounds for anxiety, depression, and PTSD, the need for clinics that can provide these treatments should be clear. Tens of millions of Americans live with these mental health issues. And alternative treatment centers that provide innovative solutions are likely to see success as the psychedelic medicine industry grows.

Wrapping Up: How Healing REIT Is Leading the Charge in Expanding the Psychedelic Treatment Space

As psychedelic therapy becomes more commonplace, more eligible patients are bound to seek out psychedelic treatment. Unfortunately, converting an existing clinic to be able to provide these services is often a costly endeavor. Although the return on that investment could be substantial, many clinics may struggle to find funding for the required changes and renovations.

Healing REIT is a company seeking to make these alterations more accessible. As a real estate investment trust that connects investors to clinics looking to adopt psychedelic therapies and other novel treatment options, Healing REIT is creating a win-win situation for those looking to invest in this budding industry and clinicians looking to provide the best treatment possible to their patients.

Healing REIT is also backed by Ambria Capital, a titan in the mental health industry. Whose leadership team boasts decades of experience in psychedelic treatment and investments. 

With a strong mission statement, a blue-ocean industry, and past success and expertise in the psychedelic therapy industry. Healing REIT has positioned itself to make a massive difference in psychedelic treatment.

READ NEXT: Psychedelics and Meditation Improve Leadership, People Believe

Dan Simms

Dan Simms

View all posts by Dan Simms

Dan has been a freelance writer and blogger since 2019, providing high-quality writing services on a myriad of topics. His work has helped clients establish personality and provide value their readers.

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