- Hospitalogy published a roundup of recent earnings reports for a number of health systems. Several large, nonprofit health systems experienced losses in the recently ended quarter, while CVS Health and other for-profit providers reported profits and earnings growth.
- A recent Bisnow article indicated that, despite showing more resilience than the general office sector, the medical office sector is now experiencing similar difficulties. Year-over-year in Q3, health care lending was down 76%, and sales of MOBs were down 62%.
- Hall Render is looking for a commercial real estate attorney with 3 to 8 years of experience to join the firm’s real estate team. Please contact Laura Dettinger for details.
- The Pennsylvania Supreme Court declined to hear Tower Health’s appeal of its loss of property tax exemption for Phoenixville Hospital. Tower has paid nearly $5M in property taxes since it acquired the hospital in 2017. Separately, the Supreme Court will still hear Tower’s appeal of its Pottstown Hospital exemptions.
- Steward Health Care plans to close New England Sinai Hospital, a long-term care and rehab hospital in Stoughton, MA, citing “chronic low reimbursement rates” and payer mix challenges.
- A recent report on medical office trends for 2024 indicated that, while interest rates may help stabilize the financing environment for the health care real estate sector, the labor environment may continue to be challenging. Some are predicting a rise in mental health care clinic deals in 2024.
- Skilled Nursing News reported that one of the unintended consequences of the SNF minimum staffing proposal may be less utilization of nursing homes, as residents may be shifted to assisted living and home and community-based services, with a boost from expanded Medicaid waivers.
- Hall Render attorney Andrew Dick recently spoke on the importance of remaining informed about the regulations affecting health care real estate, as well as the growing importance of ASCs and outpatient care in the future profitability of health systems.
- In recommending repealing the state’s Certificate of Need (CON) law, a Georgia Senate committee is looking to South Carolina as a roadmap. South Carolina signed its CON repeal in October 2023, and it is anticipated the South Carolina legislation will form the basis of the Georgia CON law when the legislature reconvenes in 2024.
- Tampa General closed on its $300M purchase of the Bravera Health network, including three hospitals and related outpatient clinics and physician offices, expanding its market to the northern Tampa suburbs.
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.
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.
