Weekly Health Care Real Estate Briefing: Fannie Mae Reports Modest Recession Could Be Delayed to Second Half of 2023 | Construction Job Openings Drop 49% | West Virginia Governor Signs CON Reform | Pittsburgh Mayor Challenges Tax-Exempt Properties

Fannie Mae published an Economic and Housing Outlook Report highlighting the possibility of a modest recession being “pushed back” from Q2 to the year’s second half. The report points to the Silicon Valley Bank and Signature Bank failures as an early sign of moderate economic contraction that is expected later this year.
According to new data from the Associated Builders and Contractors, the construction industry reported 248,000 construction job openings in January, a 49% drop from the 488,000 construction jobs available in December. Construction had the largest decline in job openings of any industry, including the food and hospitality industries.
West Virginia’s Governor signed a bill that will change the state’s Certificate of Need (CON) requirements. The new law will remove CON oversight for hospital services on a “hospital campus” and increase cost thresholds from $5 million to $100 million before CON rules apply.
Pittsburgh’s Mayor announced plans to challenge the tax-exempt status of over 26 properties, including several owned by University of Pittsburgh Medical Center (UPMC), as part of his plan to revoke tax exemption on properties that don’t qualify for exemption under state law. An estimated 20% of Pittsburgh real estate is privately owned and tax-exempt, resulting in a tax loss of around $50 million for city and county government.
The Rhode Island Attorney General filed a motion to intervene in a foreclosure lawsuit involving the former Memorial Hospital campus in Pawtucket. When the property was previously transferred in 2020, the Attorney General reserved the right to consent to any future sale.
HMC Capital has agreed to acquire 11 hospital properties in Australia from Medical Properties Trust for $859 million.
OhioHealth announced plans to invest $1 billion over a 5-year period in its Columbus facilities. Plans include a new inpatient pavilion, medical office building, parking garage, and Women’s Center.
Sutter Health announced plans to construct 24 ambulatory care centers across Northern California over the next 4 years based on population growth in that part of the state
Dignity Health is reportedly pursuing a parcel of land in Surprise, Arizona, for a new hospital and medical office building. If completed, this would be Dignity’s 9^th hospital in Arizona.
University of Florida (UF) Health recently opened a new free-standing urgent care/emergency center in Jacksonville. This is one of three free-standing facilities UF is developing with Intuitive Health.