- New Consumer Price Index (CPI) data shows that inflation eased up in April. The cost of goods and services increased 0.3% from March to April, which is down from 0.4% the previous month. Overall, the CPI has increased 3.4% year-to-date, down from 3.5% in March. This data “keeps alive the prospect of the Fed starting to cut rates in September,” according to Nationwide Chief Economist Kathy Bostjancic.
- Jefferson Health and Lehigh Valley Health have signed an agreement to merge, creating a $14B enterprise. The merger is expected to close this summer, pending regulatory approvals. The combination will create an organization with 30 hospitals, 700 sites of care and 65,000 employees.
- Kaiser Permanente announced plans to terminate a $500M new development project in the Seattle area. The project, which was originally announced in 2020, involved the development of a new 240,000 sf, nine-story facility near Harborview Medical Center. A definitive answer on why the project will not move forward wasn’t provided. Kaiser plans to sell the 1.6-acre site it purchased in 2021 for $36M.
- Children’s Health and UT Southwestern Medical Center announced a gift of $100M from Jean and Mack Pogue that will be used to support the $5B new pediatric campus that the health care organizations are developing in Dallas, Texas. To recognize the Pogue family, the 33-acre site of the new campus will be named Pogue Park.
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- UnitedHealth Group has invested more than $1B in housing to address social determinants of health, according to a company announcement. Since 2011, the company’s investment has created 25,000 homes in 31 states. The investment in housing is a way for the company to reduce costs by avoiding unnecessary emergency room visits or hospitalization.
- Financial strain on the skilled nursing industry is sparking a flurry of transaction activity. According to a new report, skilled nursing facility deals increased more than 80% in Q1 of this year compared to the same time last year. In Q1, 57 nursing homes traded hands valued at $1.4B.
- Construction costs for new hospital projects are up nearly 20% over the past five years. New hospital projects cost, on average, $445.26/sf to build. Sourcing skilled labor, material availability and infection control protocols are driving up construction costs.
- PAM Health announced plans to build four new rehabilitation hospitals in Loveland, CO; Bloomington, IN; Green Bay, WI; and Casper, WY.
- Modern Healthcare published an article on how health care REITs impact providers and patients. Key takeaways: 1) there are 16 publicly traded health care REITs; 2) the largest health care REITs are Welltower, Ventas and Healthpeak Properties; and 3) of the properties owned by health care REITs, 1/3 are senior living facilities, 1/3 are medical outpatient and 1/3 are skilled nursing and life science facilities.
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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.
