- The longest government shutdown in American history ended Nov. 12. As part of the resolution to fund the government, Medicare telehealth and acute hospital care at home programs were extended through Jan. 30. The fate of ACA enhanced premium tax credits will be debated by Congress in December.
- PwC, ULI, and Revista released an article predicting an overall strong outlook for the medical office sector in 2026. The article pointed to tailwinds such as continued strong outpatient demand, tight supply, and rising rents. However, OBBBA and other policy changes remain as potential headwinds.
- HMS Valuation Partners released its 2025 Medical Office Timeshare & Space Sharing Guide, offering hospitals and physician groups a practical roadmap for creating compliant timeshare arrangements. The guide outlines the regulatory landscape relating to these arrangements and then gives practical tips for valuing and administering these arrangements in a compliant manner.
- Health systems are increasingly divesting their standalone skilled nursing and senior living properties to focus on core hospital operations, as evidenced by recent transactions, including divestitures from Prime Healthcare and Christus Health. At the same time, demand from strategic buyers remains strong, and M&A in the long-term care sector is expected to stay strong in 2026.
- Good Samaritan Hospital broke ground on its $1.3B redevelopment project in San Jose, CA. The project includes a new hospital campus, will bring the total campus beds to 339, and was partially prompted by California’s requirement for hospitals to meet a new set of seismic requirements by 2030.
- Tampa General recently purchased a $22M, 48,000-sf building, expanding its medical district campus in the Davis Islands neighborhood of Tampa. The building is designated as hospital-based clinic space, including a newly built endocrinology clinic, and is part of a broader investment strategy in the hospital district.
- Kaleida Health will begin construction early next year on a $223M micro hospital in Chautauqua County, NY. The new one-story hospital will have 15 med-surg beds and another 5 beds for observation, an emergency department with 16 bays, 3 operating rooms, 3 procedure rooms, a full imaging suite and pharmacy, laboratory, and other support services. It will replace an 83-year-old, 65-bed hospital in nearby Dunkirk, NY.
- Sarasota Memorial Health Care System broke ground on a $507M hospital campus on 32 acres in North Port, FL. The development is expected to be completed in 2028 and will include a 9-story hospital tower, 3-story MOB, and capacity to flex up from 100 to 400 hospital beds.
- The state of Ohio is considering purchasing the former Hara Arena in Trotwood (near Dayton), OH in order to develop a new, state-run behavioral health hospital. The state expects 285k sf of new construction, with the hospital’s capacity capping out around 208 beds. The Trotwood city council has come out against the plans, while the Harrison Twp. trustees are in favor.
- Prime Healthcare plans cautious growth in 2026, balancing potential acquisitions of struggling rural hospitals with investments in new service lines, technology upgrades, and ASCs. In an interview, President and CMO Sunny Bhatia discussed the system’s approach to expansion, including 6 new ASCs per year, purchasing struggling hospitals, and integration of AI.
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