- The Federal Reserve announced that its key interest rate will remain unchanged but signaled it will consider cutting rates later this year. Inflation is sitting at around 2.8% and the Federal Reserve would like to see inflation at 2%. If inflation continues to cool off, the Federal Reserve expects four rate cuts in 2025 totaling 100 basis points.
- California is the latest state to propose legislation regulating the acquisition of health care facilities by private equity firms. The bill, if passed, would require private equity firms to secure attorney general approval before purchasing a health care facility.
- New data has been published on the cost of providing hospital inpatient services per day. On average, it costs $2,488 per day at non-profit hospitals, $2,052 per day at government owned hospitals and $1,889 per day at for-profit hospitals.
- A lawsuit challenging the constitutionality of Iowa’s Certificate of Need (CON) law can proceed according to a federal judge reviewing the case. The lawsuit was brought by two women who argue they can provide at-home birthing services without a CON but must secure a CON to provide services in a free-standing facility.
- An interim legislative committee is scheduled to discuss Kentucky’s CON process for health care facilities on June 20. This will be an open forum for interested parties to present on the status of the CON rules.
- Hall Render attorney Andrew Dick published a LinkedIn post on end of term ground lease issues and a post on the characteristics of a successful MOB joint venture.
- CareTrust REIT (CTRE) acquired two skilled nursing facility (SNF) portfolios at a cost of $180M. In total, CareTrust acquired 13 SNFs across the Southeast and Mid-Atlantic.
- Sila Realty Trust (SILA) is now listed on the New York Stock Exchange. SILA is a health care REIT with 137 properties, including medical outpatient buildings, inpatient rehabilitation facilities and specialty health care facilities.
- University of Michigan Health-Sparrow announced plans to develop a $97.2M behavioral health facility in a former school located in Lansing, Michigan.
- LaVie Care Centers, the operator of 43 skilled nursing and assisted living facilities, filed for Chapter 11 bankruptcy earlier this month. LaVie will continue to operate a number of its facilities. The company cited long-term lease obligations, unpaid vendor bills, litigation expenses and staff costs as some of the reasons for its financial troubles.
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.
