1. A recent study found that the repeal of CON legislation leads to significant increases in the number of long-term acute care hospitals (LTACs) and also increases access to specialized medical care, particularly for elderly populations. Entry of LTACs into skilled nursing facility markets was associated with reduced hospitalization rates, contrary to prior studies.
2. A bill in Washington, D.C. will soon be up for a vote that would eliminate the District’s CON requirement for telemedicine and virtual care providers without brick-and-mortar presences, as well as for capital projects that do not directly affect patient care, such as HVAC or elevator upgrades. It would also eliminate the current re-submission process for projects that take longer than three years.
3. Median hospital operating margins ticked up in January, per a recent Kaufman Hall report. The report attributed stable margins to greater service volume, while expense growth in the cost of drugs is leveling off.
4. Becker’s interviewed the CEO of Sutter Health’s ASC division. According to the interview, key challenges for California’s ASC industry include staffing shortages, rising prices of construction, equipment, supplies and enhanced care coordination across the continuum; while key opportunities include the increasing demand for ASC expansion by patients and health system engagement with legislators to pave the way for ASC expansion.
5. Geisinger announced the construction of a $32M cancer center in Lewisburg, PA, which will replace a current facility nearby. The two-story, 40,000-sf center will provide oncology, hematology, radiation oncology and palliative care when it opens in 2026.
6. NYC Mayor Eric Adams announced the opening of a $41.5M development featuring 93 units of affordable and supportive housing specifically designed for NYC Health + Hospitals patients experiencing homelessness as well as other low-income residents.
7. Virtua Health will spend $850M to renovate and expand two of its hospitals in New Jersey, including new operating rooms, a new main lobby, expanded parking and a substantial investment in technology improvements.
8. Children’s Hospital of Philadelphia (CHOP) is in the midst of a $2B, 1.3M-sf patient tower construction project, which will be named for Brian Roberts and his family in recognition of a recent $125M philanthropic gift to support the project. The project is the most expensive hospital expansion project in Philadelphia’s history, and CHOP’s CEO views the new tower as a recruitment vehicle.
9. A nonprofit health care co-op announced a purchase agreement with Hospital Sisters Health System to purchase the former St. Joseph’s Hospital building in Chippewa Falls, WI. If the deal closes, the buyer could reopen its doors as early as winter 2025.
10. Scripps Health is moving forward with plans to build a $1.2B hospital and outpatient campus in San Marcos, CA on a 13-acre site. The development will include an ASC as well as a 200- to 250-bed acute care hospital.
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