- AdventHealth has exited the nursing home business, selling all 10 of its SNFs to third-party operators. Eight of the facilities were located in Florida, one was in Texas and one was in Kansas.
- The health care facility management industry is poised for significant growth according to a recent report. Health care facility management revenue is expected to grow at a compound annual growth rate of 6.7% for the period 2021-2026, with the overall market growing from $6B to $8.3B, according to the report.
- VCU Health is expected to lose $80M by exiting a construction project that would have redeveloped the Richmond (VA) Public Safety Building. A third-party review pointed to insufficient due diligence, turnover in management and inadequate in-house real estate expertise as contributing to the abandonment of the project.
- A Los Angeles ballot measure backed by SEIU-United Healthcare Workers West would cap pay for hospital executives at $450,000 per year. The proposed limitation would apply to any executive, manager or administrator at privately owned hospitals in Los Angeles, as well as SNFs, residential care facilities and all facilities within integrated health systems.
- JLL released its 2023 patient consumer survey. The survey found that location and convenience were the second most important factors in choosing a provider (behind insurance coverage).
- Rhode Island’s largest hospital system, Lifespan, is looking to consolidate its real estate portfolio. In particular, the system is looking to shed underutilized administrative space.
- VHC Health celebrated the opening of its $250M expansion project in Arlington, VA. The new 250,000-sf 6-story building took four years to complete construction.
- Catholic Health (Buffalo, NY) has announced a reconfiguration plan that will expand its ASC presence in western New York while discontinuing certain inpatient services and sending those patients to other Catholic Health facilities.
- Georgia lawmakers continue discussions on CON restrictions affecting opening and expansion of hospitals and other medical facilities in the state. Proponents of CON restrictions say they help prevent hiring wars and lower spending, while opponents say the current CON system helps larger hospitals at the expense of smaller, rural operators.
- St. Mary’s ASC in Knoxville, TN will be converted into an urgent care and behavioral health facility thanks to a $70M investment from the City of Knoxville, which also involves the adaptive reuse of several buildings into a new public safety complex.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Correction to an item from last week’s Briefing: Hall Render Advisory Services is working with a health care provider to reposition a Class A, 39,000 sf on-campus building in the Dayton, Ohio area. The facility was built in 2020 as a high-end free-standing hospice facility. It could be converted into a specialty hospital or outpatient facility. If interested, download the brochure or contact John Marshall for details.
Special thanks to Gabriel Vaughn, undergraduate intern, for his assistance in the preparation of this article.
