- Over the past 12 months, Ascension has undergone a significant market realignment, including a strategic exit from several markets and service lines. Hospitalogy created a helpful graphic showing the health system’s larger divestments and joint venture transactions over the past year.
- Four health systems are vying for CON approval to build over $1B of new health facilities in Wake County, NC. UNC Health, Duke Health, WakeMed and Novant Health have all advanced plans to build new hospitals and expand existing facilities. The state says at least 70 new hospital beds are needed in the county.
- The Federal Reserve’s recent interest rate cut is expected to accelerate hospital development as well as acquisitions of physician practices, particularly in Houston, according to a recent article. One system that may benefit in the immediate future is Harris Health, which received voter approval last year for a bond issuance to fund a new hospital and has yet to issue the bonds.
- The South Florida Business Journal published a roundup of 13 hospital projects currently under active construction or recently proposed in South Florida to meet the population increases and large senior demographic in the region. Key projects include the University of Miami’s Sylvester Comprehensive Cancer Center, Mount Sinai’s new cancer center and Baptist Health’s rehabilitation hospital.
- The CEO of the 101-hospital system, Trinity Health, recently discussed the system’s creation of a community division that is focused on expanding outpatient care, such as urgent care, ASCs and PACE program care. Trinity Health has experienced year-over-year growth of 10% in this community services division.
- Residents in AL and IL facilities save the Medicare program money due to fewer skilled nursing stays, reduced emergency visits and fewer hospitalizations, according to recent data shared at the NIC fall conference. Experts highlighted how the federal shift to value-based care offers senior housing operators a chance to secure financial incentives that have traditionally gone only to health care providers.
- Nonprofit WoodBridge Healthcare plans to use bond financing to acquire the for-profit Commonwealth Health system (PA), including three hospitals and over 70 clinic locations, for $120M. The Wilkes-Barre Finance Authority will issue up to $180M in tax-exempt revenue bonds to finance the purchase.
- Becker’s highlighted two recent CON applications that were initially denied but later approved on appeal: (1) HCA planned a $234M hospital project in Hanover County, Virginia, which was denied until the system downsized its plans to include only a $21M surgical center; and (2) Healthcare Resources’ ASC and medical office project in Hoover, Alabama, faced opposition but ultimately gained approval after a public hearing.
- Inova Health System is set to begin construction on two new hospitals in Northern Virginia, with groundbreaking ceremonies scheduled for both on September 30. These projects are part of a $2.5B expansion plan targeting completion by late 2028, which includes a 192-bed acute-care hospital and a 110-bed facility, ultimately replacing an aging hospital in Alexandria.
- St. Luke’s Children’s Hospital in Boise, ID, celebrated opening the “only dedicated pediatric inpatient unit in the State.” The unit will provide specialized care for children recovering from severe trauma or injuries and marks the fruition of a decade of planning.
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.
