- The number of memory care units within continuing care retirement communities (CCRCs) continues to grow, and occupancy rates for such units are also on the rise, fueled in part by operators downsizing their skilled nursing facility (SNF) footprints within CCRCs. CCRC memory care occupancy was 89.7% in Q2 2024, up 3.7% year-over-year.
- Senior living lengths of stay have decreased over the past 4 years to an average around 24 months. Operators have responded by focusing on more profitable, lower acuity residents and expanding lifestyle programs in an effort to extend lengths of stay.
- A behavioral health provider recently settled with the HHS OIG for $141,000 after self-disclosing alleged CMP Law violations that included remuneration to physicians in the form of free office space and reductions in rental charges per patient admitted by the physician to the provider’s partial hospitalization program. Hall Render recently published a roundup of other real estate-related self-disclosures here.
- Medical Economics published a story on 5 issues to consider before selling a medical practice. Key considerations include (1) whether to retain some portion of ownership in the real estate or other assets of the practice, (2) implications of the FTC’s recent non-compete regulations, (3) state CON or similar transaction approval requirements, (4) compliance with the Corporate Transparency Act and (5) treatment of rollover equity.
- Ascension St. Vincent’s and Birmingham Heart Clinic are joint venturing to open a new cardiovascular ASC in Birmingham, AL. The clinic will be housed in a 9,000-sf building connected to the hospital, is budgeted to cost $11 million, and is slated to open in 2026.
- Five hospital facilities announced closures during the month of September: MercyOne Medical Center (Des Moines, IA), Stanislaus Surgical Hospital (Modesto, CA), Community Memorial (Hicksville, OH), Carney Hospital (Boston, MA), and Nashoba Valley Medical Center (Ayer, MA). Recent trends have indicated a disparate impact in the post-Covid recovery for hospital facilities.
- A U.S. bankruptcy judge approved Orlando Health’s acquisition of three hospitals from Steward Health Care in East Central Florida for a total of $460M, including $439M in cash. Closing is scheduled for October 23. The purchase is part of a broader expansion strategy, including recent plans to acquire a majority stake in Alabama-based Brookwood Baptist Health.
- In addition to the three East Central Florida hospitals in the prior item, Medical Properties Trust also reached a settlement appointing new operators for 23 other hospitals previously operated by Steward. The new operators will be HSA (East TX, LA, and Southeast FL), Honor Health (AZ), Quorum Health (West TX), and Insight Health (OH).
- Kaiser Permanente obtained plan commission approval to demolish its existing 250k-sf San Jose Medical Center and replace it with a new 685k-sf hospital, central utility plant, and 5-level parking garage. The expansion will add approximately 800 jobs and will be self-financed by the health system.
- The University of Missouri-Kansas City started construction on a $145M, 160,000-sf Healthcare Delivery and Innovation Building, which is intended to house medical and dental student research and instruction as well as clinical services for the University.
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.
Special thanks to Olivia Allison, undergraduate intern, for her assistance in the preparation of this article.
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.
