- PWC released the results of its Global CEO Survey. A majority of CEOs are taking steps to reinvent their companies to address megatrends like technological change, change in customer preferences and government regulation. 18% of health care CEOs plan on reducing their headcount in 2024 based on the use of generative AI. The effects of the pandemic are fading away with only 11% of CEOs feeling concerned about global health risks over the next 12 months.
- Health care providers around the country are struggling to find ways to cover the cost of treating uninsured immigrants within the U.S., per Beckers. At least 11 states have agreed to provide full health insurance coverage to low-income immigrants regardless of their legal status.
- JLL released its 2024 Healthcare Real Estate Outlook. Key takeaway: Health systems will be looking for ways to use real estate to reduce costs, improve revenue and retain talent.
- Ankura released its 2024 Health System Predictions. Financial performance will be slow but steady throughout the year, M&A activity will continue to increase and construction spending in the health care sector should grow 3% to 4% this year.
- Marsh released its 2024 Global Risk Report. The top 5 risks on a global scale are: 1) Extreme weather, 2) AI-generated misinformation, 3) Political polarization, 4) Cost of living crisis, and 5) Cyberattacks.
- Hall Render attorney Andrew Dick recently posted articles on outpatient growth strategies for health systems and data points for negotiating ground lease terms.
- Nuveen released its 2024 Real Estate Outlook and noted that alternative property types like outpatient care facilities, manufactured housing and self-storage are “favorably positioned for future resilience and outperformance.”
- Growth in the ambulatory surgery center industry continues to be a top priority for health systems. According to recent data, 47% of health systems have an affiliation or ownership interest in multiple ASCs, and 60% of health systems would consider an ASC joint venture this year.
- Seniorly released new data on the cost of assisted living (“AL”). The average cost of an AL unit is $4,401 per month. The most expensive states for AL units are NH, DC, DE, HI and WY. The most affordable states for AL units are LA, GA, SD, IA and MN.
- Real estate investment trust (“REIT”) stocks have rallied over the past few weeks hitting new highs as forecasters are widely predicting the end of a market slump. REIT stocks haven’t risen to current levels since before the banking crisis in early 2023.
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.
