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Weekly Hospital Real Estate Briefing: NC Passes Health Care Reform Bill | Sutter Health’s Real Estate Strategy | New Children’s Hospital Projects

Posted on June 13, 2025 in Health Law News, Hospital Real Estate Briefing

Published by: Hall Render

  1. North Carolina legislators have passed a bill designed to reduce health care costs, improve price transparency and eliminate certificate of need (CON) restrictions on certain health care projects. The bill removes CON restrictions on diagnostic centers, rehabilitation facilities and in-home hospice services. North Carolina was recently ranked as having the most expensive health care in the country.
  2. Sutter Health (CA) broke ground on a new $440M neuroscience complex in San Francisco, CA. The 129,000-sf facility will be a regional hub for brain health. Sutter has committed to investing $1B in health care infrastructure across San Francisco over the next five years.
  3. Sutter Health is also making significant investments in rural health care in Northern California (Del Norte and Lake Counties) using a multi-pronged approach. Sutter is planning the following: 1) a psychiatric treatment facility; 2) two new primary care facilities; and 3) workforce housing for clinical workers.
  4. Norton Healthcare (KY) announced plans for a new children’s hospital on a 136-acre campus in Jefferson County, KY. The project will include hospital services, research facilities and pediatric specialty services.
  5. CoxHealth (MO) and St. Louis Children’s Hospital are teaming up to develop a new children’s hospital, along with a new pediatric outpatient facility, in Springfield, MO. The outpatient facility will include pediatric ambulatory surgery services, imaging, lab services and other clinical services.
  6. Duke Health (NC) broke ground on a new $174M hospital in Cary, NC. The 40-bed hospital is part of Duke’s plan to expand services on its 85-acre outpatient campus in Cary.
  7. VCU Health (VA) is seeking regulatory approval to build a new hospital in Chesterfield, VA. The hospital, if approved, would include 66 beds and be located on a 56-acre campus.
  8. The redevelopment of the former Charity Hospital in New Orleans, LA, appears to be back on track after a lawsuit has been settled. Plans to redevelop the 1M-sf hospital include housing, retail space and office space. Tulane University plans on occupying 500K-sf of the former hospital building. The redevelopment is expected to cost $600M.
  9. Adventist HealthCare (MD) will not be acquiring Howard University Hospital (D.C.). The organizations announced plans to cease discussions and to phase out a management agreement for the operation of the hospital.
  10. Munson Healthcare (MI) has received a $500,000 employee-assistance housing grant from a state agency. The funds will be used to subsidize housing for out-of-town workers who commit to working at a Munson hospital for two years. The initiative is designed to address staffing shortages at the hospital and the lack of affordable housing near the hospital.

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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.