- On November 17, 2023, CMS published its final rule requiring Medicare and Medicaid nursing facilities to provide more detailed ownership and managerial information. The final rule includes new definitions of “private equity company” and “real estate investment trust” for Medicare enrollment purposes.
- HCA plans to invest $5.3B in already-approved projects in 2024, including freestanding EDs and ambulatory surgery centers (ASCs) in order to grow its market share to 29% by 2030. The health system also seeks to reduce costs by improving benchmarking among its facilities to allow them to share best practices and to invest in a nursing college to address labor shortages.
- After a year of cost-cutting, CommonSpirit Health plans to add ambulatory capacity in 2024. The strategy is part of the health system’s 5-year plan to reduce redundant IT systems, streamline its operating divisions, reduce reliance on contract labor and invest in various types of facilities, from inpatient and behavioral hospitals to imaging and primary care.
- Becker’s ASC published a roundup of certificate-of-need (CON) laws “by the numbers,” indicating that: 1) four states (NC, SC, MS and NY) updated their CON laws in 2023; 2) 23 states require a CON to open an ASC; 3) 17 states have no CON laws; and 4) 25 states loosened CON laws during the pandemic.
- The Mayor of Zion, Illinois (45 miles north of Chicago) vowed to fight an application for property tax exemption from City of Hope cancer hospital due to a claimed 10-15% increase in property taxes for homeowners. Media reports have also focused on high executive salaries, including $4M to its CEO and 12 other executives earning over $1M per year. Illinois property tax exemption law does not include executive compensation as a factor in obtaining an exemption.
- Atrium Health Wake Forest Baptist obtained new regulatory approval for the construction of a $78M ASC on its main campus in Winston-Salem, NC. The project was originally approved more than a decade ago at $34M, but the budget doubled after the project was challenged by a competitor, sidelined for a time and then resurrected as part of Atrium’s $3.4B commitment to invest in Wake Forest Baptist and its communities by 2030.
- The VA Department of Health granted CON approval for Bon Secours to build a $17M freestanding ED in Hanover County while rejecting a competing proposal from HCA Healthcare. The health commissioner said the proposed HCA project was unnecessary given the health system already has a freestanding ED in Hanover that is running below capacity and is building another in a nearby community. Bon Secours will offer enhanced charity care for the proposed project.
- The new CEO of By the Bay Health in San Francisco said nonprofit hospices should consider the benefits of collaborating or combining with like-minded organizations in order to ensure sustainable growth and reach more patients, according to a recent interview.
- OU Health broke ground on a $141M pediatric behavioral health center in Oklahoma City. The 72-bed, 172,000-sf facility will feature inpatient and outpatient services, training space for mental health care providers and a gym and outdoor garden spaces.
- The WSJ reported the office sector’s credit crunch is worsening. Delinquent CMBS loans have tripled over the past year to 5.75%, and rising interest rates and vacancies are making it more difficult to obtain new loans or refinance existing debt.
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.
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.
