- Health care experts questioned Kaiser’s strategy for its new health system, Risant Health. Kaiser’s strategy involves developing a nationwide health system aimed at large corporate customers that would compete with Amazon, Aetna CVS, Walmart Health and United Healthcare on cost. Critics note that Risant doesn’t have its own network of physicians (like Kaiser has in California) and question how Risant will raise the funds needed to develop a nationwide network.
- The State of California has made nearly $300M in interest-free loans to 17 distressed hospitals in the state. The loans were made through the state’s Distressed Hospital Loan Program which was signed into law several months ago to help struggling independent and rural hospitals. Three hospitals in California have filed for bankruptcy this year.
- Statista, an online platform specializing in data gathering, released a list of the most expensive U.S. cities to construct a general hospital in the second quarter of 2023. Los Angeles, San Francisco and New York are at the top of the list averaging over $700 per square foot, with Phoenix and Las Vegas rounding out the top 10 at over $540 per square foot.
- The University of Texas at Austin and the University of Texas MD Anderson Cancer Center in Houston announced a partnership to build two new hospitals in Austin that are estimated to cost $2.5B. Groundbreaking is expected in 2026.
- HonorHealth announced plans to build a new hospital campus within a 101-acre master-planned community in Surprise, Arizona called Asante. Plans for the community include medical office space, flexible office space, and a hotel, along with restaurants and retail shops.
- Trident Medical Center in South Carolina has applied for a Certificate of Need to build a 50-bed hospital on Johns Island that is expected to cost $277M. The hospital is projected to create 300 jobs, contribute $10 million in taxes and pay $70M in salaries and benefits.
- Lexington Medical Center recently purchased 65 acres near the town of Lexington, South Carolina. The hospital system has not announced plans for the site.
- AdventHealth, Orlando Health and HCA Healthcare have announced plans to build eight freestanding emergency rooms in the Orlando metro area. Orlando has experienced significant growth over the past few years which has prompted local providers to build new facilities.
- Nutex Health announced aggressive growth plans. The physician-led health system has opened four micro-hospitals this year in Arkansas, New Mexico, Louisiana and Texas and plans to open one or two more before the end of the year. The system also announced plans to build 14 micro-hospitals by the end of 2025. Nutex currently has 22 micro-hospitals in eight states.
- Medical Properties Trust has been featured in several news stories over the past few weeks. MPT’s stock has declined by more than 30% over the past 30 days. The company announced plans to improve its balance sheet by reducing debt and cutting its dividend.
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Special thanks to Gabriel Vaughn, undergraduate intern, for his assistance in the preparation of this article.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
