- Last week’s CPI report indicated persistent inflation, leading the WSJ to report that Federal rate cuts are now a matter of “if, not just when.” Interest rates remaining higher for longer could cause more pain in the commercial real estate industry, although some experts predict owners will give up on waiting.
- Hartford HealthCare issued $150M in new tax-exempt debt financing to fund significant upgrades at a number of its existing hospitals, as well as funding a new proton therapy center under development in Wallingford, CT.
- Senior living occupancy continued to close in on pre-pandemic levels in Q1 2024, as occupancy increased for the 11th consecutive quarter.
- Health Facilities Management Magazine published on best practices for project managers. The recommendations include: (1) aligning expectations between the PM and hospital leadership; (2) preparing to handle changes in staffing and materials availability; and (3) coordinating with the clinical team on phased work to minimize interruption to patient care.
- An expansion project at a regional pediatric hospital in Grand Rapids, MI is the subject of recent litigation by an architectural firm over a design dispute related to a pending expansion project. The case puts a fine point on the importance of clear contracts for hospital design and construction projects to avoid delays when disputes arise.
- Highmark Health and Allegheny Health Network announced a $1B investment in the Allegheny General Hospital campus in Pittsburgh, including a new cardiovascular tower and emergency department.
- Acadia Healthcare announced its acquisition of three behavioral health centers in North Carolina that provide treatment for individuals with opioid use disorder. The facilities are in Raleigh, Greenville and Hillsborough.
- Connecticut CON laws took the spotlight again following persistent delays in reviewing the purchase of three hospitals by Yale New Haven Health, which were seen as critical to the hospitals’ survival. Legislators are considering at least four bills that would make varying degrees of change to the CON approval process.
- Meanwhile, Tennessee CON reform remains contentious, pitting the Tennessee Hospital Association, which represents a significant portion of the state’s nonprofit hospitals, against HCA Healthcare, the nation’s largest for-profit hospital operator.
- Ventas is expanding its investment in senior housing, given attractive net operating income growth and internal rates of return. The REIT said it is working on an investment pipeline of more than $300M in the senior housing space.
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.
