- Goldner Capital Management, a private equity firm once prominent in the SNF sector, has filed for Chapter 11 bankruptcy, attributing a Covid-era lending scheme. Goldner claims an affiliate of one of its lenders leased or subleased 20 Goldner facilities and then stopped paying rent, causing a lease default that allowed the lender to seize the real estate.
- A recent report by Moody’s forecasted hospital operating margins to stay low in 2025 due to a steep rise in health care wages and reimbursement rates that are not keeping pace with rising costs. The report indicated that salaries and benefits now comprise 53% of nonprofit hospitals’ expenses.
- Hospitals are getting creative to combat staffing challenges, per a recent report. For example, Memorial Hermann Health System has created a “health care high school” to find workers even before they enter the job market, and Froedtert Health and ThedaCare began working on cultural integration long before the two health systems merged in January.
- Nursing home REITs anticipate rising deal volume in the sector as occupancy rates improve and reliance on agency labor has decreased. As of Q3 2024, senior living transactions for the year totaled 700, up 25% from 2022, and spending reached $2.96B, up 243% year-over-year.
- The Dana Farber Cancer Institute and Beth Israel Deaconess Medical Center received approval to build a $1.68B cancer hospital in Boston. The facility will be 14 stories tall and feature 300 inpatient beds, 20 observation beds and an underground garage.
- St. Peter’s Health (Helena, MT) hosted its third annual Housing is Healthcare summit to discuss the link between housing stability and health. Key topics included Medicaid expansion and community housing challenges.
- Health systems continue investing heavily in spine and orthopedic facilities. Current projects include a $781M project in Kentucky, a $50M site in Iowa, an $11M ASC in Indiana, a $19M expansion in Louisiana and an $85M center in Michigan.
- The Missouri Tax Commission recently denied tax exemptions for three Mercy Health clinics and one pharmacy, ruling they operated like for-profit businesses and lacked emergency care services.
- Ascension will open a $200M women and infants hospital in Indianapolis on November 16. The facility will include 109 neonatal ICU rooms, 30 maternity suites and one of Indiana’s largest pediatric emergency departments.
- Medical Properties Trust has sued the Mass. Dept. of Public Health over a denied extension for construction approvals on the flood-damaged Norwood Hospital site. The lawsuit claims that the Department’s rejection of its request for an extension of time has hindered MPT’s ability to sell or lease the property.
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.
