- The Massachusetts Development financing agency issued a $400M tax-exempt bond on behalf of Beth Israel Lahey Health, which will use the proceeds to buy, build, expand, remodel and renovate facilities at multiple locations across the health system.
- Under a bill introduced in Congress, 11 Veterans Affairs hospitals across the U.S. could obtain up to $4.6B for major medical facility projects in fiscal year 2024, including projects to construct new buildings and expand existing facilities.
- In a recent article, Realty Trust Group recommended a two-phase real estate strategy as part of health care M&A transactions: (i) focus on strategic due diligence, and (ii) optimize integration for ongoing operations.
- The Advisory Board health care strategy group recently reported that hospital systems are recovering from the pandemic, but margins are tight. According to the group, the biggest expense for health systems is labor at about 60%, followed by supplies and capital expenditures.
- Novant Health closed on 16 of 21 properties as part of a sale-leaseback transaction with Remedy Medical Properties and Kayne Anderson Real Estate. The facilities are located in and around Winston-Salem, Charlotte and Wilmington, NC.
- A UVA Health building in Charlottesville, VA earned a national sustainability award for its efforts at waste reduction, medical device reprocessing and energy management. In 2023 alone, building operators collected more than 9,700 pounds of single-use devices for reprocessing and reuse, saving $730,000.
- A recent report promoting payments in lieu of taxes (PILOTs) indicated that hospital buildings in NYC have an estimated total exempt market value of $14.5B, resulting in foregone tax revenues of $689M per year. The piece represents one of several recent attacks on hospital property tax exemptions in a variety of states.
- Two Prime Healthcare hospitals in Pennsylvania will convert from for-profit hospitals to nonprofit hospitals, with ownership being assumed by Prime Healthcare Foundation, a 501(c)(3) public charity. The conversion is scheduled for summer 2024 and would make all Prime Healthcare hospitals in the state nonprofit.
- MaineHealth is set to open a $378M, 300,000-sf addition to the Maine Medical Center in Portland, ME. The building will expand the hospital’s capacity to treat cardiac patients, of which the hospital treats an average of 120 inpatient heart patients per day.
- Piedmont Henry Hospital (located near Atlanta, GA) broke ground on a $212M, two-year expansion. The project features a new 5-story bed tower with 96 patient rooms, 3 ORs and a new kitchen and cafeteria. It comes on the heels of another new patient tower at Piedmont Newnan Hospital, also in the south Atlanta area.
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.
