- Novant Health acquired three hospitals in South Carolina from Tenet Healthcare for $2.4B, including Hilton Head Hospital, East Cooper Medical Center and Coastal Carolina Hospital.
- The next state considering Certificate of Need (CON) reform is Kentucky according to a recent Becker’s article. At least four bills have been introduced to change the CON law, a task force met last year and another task force will likely meet this year to discuss the CON law. Citizens are pushing for change based on limited hospital and health care resources in certain communities that they believe are because of CON laws.
- Maryland is considering a bill that, if passed, would provide $5.4M in housing assistance for individuals experiencing homelessness and chronic health conditions. The bill is designed to provide housing assistance to help the most vulnerable get back on their feet.
- Cano Health, a large primary care provider that recently filed for bankruptcy protection, is asking a bankruptcy court to reject 72 leases across the country that it no longer occupies.
- Hall Render is hosting an Employment Law Summit in Scottsdale, Arizona for hospital and health care human resource executives on April 25-26. For more information contact Dusty Greer at dgreer@hallrender.com.
- Hospital operating margins are slowly improving according to a new Credit and Capital Markets Outlook Report from Kaufman Hall. Operating margins were at 2% at the end of 2023, which is an improvement over margins reported during the first half of 2023. Hospitals still have a ways to go to achieve financial stability. An operating margin of 3% to 4% is necessary for long-term sustainability according to the report.
- Avanza Intelligence recently issued its Hospital Leadership ASC Survey. Key takeaways include: 1) ASCs are becoming central to the overall health system strategy; 2) 7 out of 10 hospitals intend to continue investing and affiliating with ASCs; 3) Hospitals prefer to have at least 50% ownership stakes in ASCs; and 4) More hospitals are shedding management agreements with third parties and self-managing ASCs in their networks.
- Revista published slides from its 4th Quarter 2023 Subscriber Webinar. The top 5 markets in Q4 in terms of demand were: Phoenix, L.A., Houston, Philadelphia and Atlanta. Construction activity is low, MOB pricing per sf is down 12% and cap rates are up 80 bps. The number of new MOB mortgages is at an all-time low.
- Array Advisors published a new whitepaper on emergency department (ED) use rates. The paper shows that while plenty of alternative care sites exist today (e.g., urgent care and retail health locations), there has been a steady increase in ED use rates over time. There has been an increase in patients using EDs under the age of 15 and for those between 45 and 64 years of age. Additionally, there has been an increase in patients with Medicare/Medicaid presenting to EDs, while those with private insurance are declining.
- Texas Children’s announced a new $485M children’s hospital on its North Austin campus, along with a 170K sf outpatient building.
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.
