- VMG released its 2025 Health System Leader Expectations Survey. Key findings inlcude: (1) recruitment and retention of physicians and expansion of the provider network are top challenges; (2) increased volumes and easing labor pressures will lead to stable or improved financial performance; and (3) health care leaders are most open to JVs in outpatient surgery or behavioral health.
- An article highlighted various funding mechanisms health systems are employing to fund their ambulatory care expansions. Some systems have used operating cash flows or reserves, others have used bond financing or traditional debt and others have leveraged philanthropic campaigns to fund ambulatory projects.
- Ankura published its health care real estate outlook for 2025. The consulting firm foresees some easing in capital markets and construction costs and some stabilization in labor costs, but headwinds include rising IT and cybersecurity costs and uncertainty in the reimbursement landscape.
- Senior housing REIT NorthStar Healthcare entered into an agreement to be acquired by Welltower in a deal valued at $900M. Subject to shareholder approvals, the deal is scheduled to close in H1 2025.
- Revista recently shared a blog post with data on health care construction trends since 2015. The data showed that general hospitals have maintained an average level of new construction, with fewer new projects but larger average project size. For medical office buildings, new construction starts have been in decline since 2022, but the square footage being completed (or redeveloped) has been relatively steady.
- Kaufman Hall issued its 2025 credit and capital markets outlook. The report noted that, for the first time since 2017, all three ratings agencies maintain a stable outlook for the nonprofit health care sector. Health care bond market issuances rebounded in 2024, which is a trend the firm expects to continue.
- An article highlighted the factors driving a health system consolidation boom in Pennsylvania. Health system leaders pointed to financial pressures from rising costs and inadequate reimbursement, in addition to the shift to value-based care and population health management.
- Cooper University Health Care broke ground on a new 10-story patient tower in Camden, NJ. The 345k-sf addition marks the first phase of a $3B planned expansion by the health system.
- The Health Care District of Palm Beach County, FL is seeking a development partner to help it build a crisis center for mental health and substance abuse at a cost of about $60M. The facility will be funded in part by a $10M federal grant and will provide outpatient and inpatient care.
- Duke Health and UNC Health announced a collaboration to establish North Carolina’s first standalone children’s hospital. The $2B project will feature a 500-bed hospital, outpatient care center, behavioral health center and research and education facilities.
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