- The HHS OIG recently published nearly $2M in self-disclosure settlements with medical providers that involved real estate arrangements. The most common issues involved rental rates that were outside of fair market value or a failure to timely bill and collect for operating expenses and other services being provided by landlords to tenants.
- A former hospital in St. Petersburg, FL will be turned into 71 affordable housing units for low-income seniors over age 62. The development will also have health care services available on-site for residents.
- Massachusetts Gov. Maura Healey negotiated preliminary agreements to keep six of the eight Steward hospitals in Massachusetts open under new operators. Part of the plan involves the state seizing control of the real estate of one of the hospitals under powers of eminent domain.
- Health systems that invest in affordable community housing see “significant” decreases in inpatient and emergency department visits among patients experiencing homelessness, according to a recent report. In 2023, nearly 25 health systems reported investing more than $550M in affordable housing projects.
- A Mississippi legislative committee recently held discussions to consider abolishing the state’s CON law. Last year, over two dozen bills were introduced seeking to modify the state’s CON in some way. Currently, 35 states have CON programs, while 12 states had CON laws and later repealed them.
- Sonida Senior Living is under contract to purchase a portfolio comprised of eight assets and 555 units in northern Florida and South Carolina for $103M. The company owns 70 senior housing communities in 20 states and serves as operator of another 13 communities.
- A recent change to Georgia’s CON law will pave the way for a rural emergency hospital in Cuthbert, GA to reopen after shuttering four years ago due to heavy operating losses. While some state appropriations have been set aside for the reopening, critics say the facility will still face the same economic headwinds that led to its prior closing.
- The CEO of post-acute focused Sabra Health Care REIT said investments in behavioral health facilities can hit a break-even point with just 50%-60% occupancy, making it a compelling business opportunity. However, these facilities tend to have shorter lengths of stay, making such investments less predictable.
- Santa Clara (CA) Valley Healthcare will purchase a 258-bed hospital from HCA for $175M. The east San Jose facility covers about a quarter of the county’s total trauma cases. HCA said it has invested more than $500M in the facility over the past 25 years.
- Lee Health started construction on a replacement facility for Lee Memorial Hospital in Fort Myers, FL, which is expected to have 170 beds and open in 2027. The building is designed to withstand 174-mile-per-hour winds and will have 100% power backup capabilities.
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.
