Weekly Health Care Real Estate Briefing: RI Legislative Effort Would Tax Hospital-Owned Real Estate Leased to Other Nonprofits | Senior Housing Transaction Volume Remains Low, but Outlook Optimistic

The Hospital Association of Rhode Island has raised concern over Providence, RI Mayor Brett Smiley’s push for legislation that would authorize the municipality to tax hospital-owned real estate occupied by any tenant, including nonprofit physician groups affiliated with a nonprofit hospital.
Managed care company Centene Corporation has listed a 68-acre, 517,000-sf corporate campus for sublease in Sacramento, CA. This is in furtherance of Centene’s announcement in 2022 that it would reduce its real estate footprint by 65%.
A joint venture between Inova health system and Select Medical opened a new LTACH located within Inova’s Mount Vernon Hospital in Alexandria, VA. The 32-bed hospital is the first of its kind in Northern Virginia, with the nearest LTACHs located in Charlottesville and Richmond.
Senior Housing News recently reported that, despite complexity and uncertainty that are weighing down the senior living industry and transaction volume, which is likely to continue for the remainder of 2023, industry analysts expect net operating income to increase next year and beyond as the next wave of older adults enter senior living.
Johns Hopkins Hospital recently received two state grants as it works to complete construction of a nearly $516M renovation and addition to its East Baltimore campus. The project will create 200,000 sf of lab and research space and will also include conference rooms and the hospital’s cafeteria.
The Sanders Trust is building a 60,000-sf inpatient rehabilitation hospital that will include 50 inpatient rehabilitation beds in all private rooms. The project, located in Jacksonville, FL, is expected to cost $48M and will be operated by Lifepoint Health.
ULI published an article on the ways hospitals are expanding their roles from providing only individual health care to focusing more on communities. ULI says that architects, developers and other real estate professionals can help hospitals engage the public in creative ways to use their real estate to better connect with the surrounding community.
Jefferson Healthcare’s $90 million campus replacement and expansion project in Townsend, WA is slated to break ground in October. The project will add ambulatory surgery, geriatric consulting and pulmonology services as well as expand dermatology, ear, nose and throat and neurology care. The expansion project is slated for completion in the first quarter of 2025.
A New Orleans courthouse complex built in 1855 has reopened as a senior living development after a 3-year renovation. The complex features central dining spaces, lounges and a bar that is open to the public. The adaptive reuse project has been well received by neighbors.
Penn Medicine is opening a mental health crisis response center at the former Mercy Hospital in West Philadelphia. The new crisis response center represents a key step in Penn’s realignment of behavioral health and addiction treatment at its Philadelphia hospitals as it aims to make care accessible to patients without a hospital stay.