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Weekly HCRE Briefing: Hospitals Focus on Workforce Housing | Nonprofit Hospital Credit Downgrades Continue | Indiana Property Tax Exemptions for Hospitals May Be in Jeopardy

Posted on January 24, 2025 in Health Law News, Hospital Real Estate Briefing

Published by: Hall Render

  1. President Trump’s first week in office ushered in a number of changes to health care policies, including an executive order rescinding President Biden’s executive order on lowering prescription drug costs. The president also selected Dorothy Fink, MD, as interim HHS Secretary.
  2. Nonprofit hospitals’ credit downgrades outpaced credit upgrades in 2024, according to a recent article. The three major credit rating agencies collectively issued 95 downgrades and 37 upgrades in 2024, which was a slight improvement from 2023 when they issued 116 downgrades and 33 upgrades.
  3. Join Danielle Bergner of Hall Render and Milton Pratt of The Michaels Organization for a webinar titled “Health Care Workforce Housing: Strategies and Solutions” on February 25, 2025, at 1 PM ET. Registration is available here.
  4. Indiana Governor Mike Braun signed an executive order requiring the state health department to determine its authority to issue administrative rules that would require each nonprofit hospital in the state to provide more charity care in a given tax year than the value of tax exemptions enjoyed by that hospital. This could have a major impact on nonprofit hospitals’ exemptions from income, sales and property tax.
  5. CBRE released its 2025 U.S. Investor Intentions Survey, which canvassed commercial real estate investors on their plans for 2025. Key takeaways include: (1) 70% of investors plan to increase asset acquisitions compared with 2024; (2) investors expect property prices to stabilize this year (other than office assets); and (3) the most attractive markets remain Dallas/Ft. Worth and Miami/South Florida, while Nashville failed to make the top 10.
  6. Three health systems were awarded “Environmental Services Departments of the Year” by Health Facilities Management magazine, including Orlando Regional Medical Center, Munson Medical Center in Traverse City, MI and Geisinger Bloomsburg (Pa.). Each organization was recognized for empowering its workforce to reduce turnover and increase team members’ efficiency in facility management.
  7. Several private and governmental entities are making major behavioral health investments in 2025, including: (1) Henry Ford Health, which recently opened a new behavioral health hospital in West Bloomfield, MI; (2) Oklahoma County, which recently approved a contract for a new mental health facility in Oklahoma City; and (3) a three-county effort to open a crisis stabilization center in Harrisburg, PA.
  8. A recent report by a public policy organization provided a state-by-state summary of employment noncompete agreements, including health care-related exemptions from those state laws.
  9. A recent op-ed criticized the slow rollout and relatively small scope of Tennessee’s recent CON repeal, alleging that 5.5M Tennessee residents were denied increased access to health care services and that the state lost over $700M of direct investment in health care services as a result of CON denials.
  10. Novant Health partnered with a developer to create a housing development designed to address the workforce housing shortage in Hilton Head, SC. The development will comprise 141 units, with 30% of units reserved for essential workers.

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.