- Health systems and physician groups largely held back on mergers and acquisitions in 2025 due to inflation, high labor costs, reimbursement uncertainty and new state laws targeting private equity. In 2026, deal activity is expected to increase as policy uncertainty clears up and health systems align with physicians to grow their ambulatory networks.
- PE firm IRA Capital announced the acquisition of a 24-MOB portfolio with 1.5M sf of space across 11 states. The assets are largely on-campus or adjacent, with anchor tenants including Ascension, Trinity Health, CommonSpirit, M Health Fairview, Tenet and Advocate.
- Hall Render published an article on the Stark Law’s limits on non-monetary compensation to physicians and limited cash remuneration for services rendered by the physician. Where these benefits (e.g., free or subsidized parking) aren’t contemplated under a lease or license agreement, hospitals have some limited leeway to provide them pursuant to the exception, but analysis of the specific arrangement is always recommended.
- A recent article highlighted the ways health systems are preparing for reimbursement cuts and rising uncompensated care, including: (1) increasing days cash on hand; (2) improving net patient revenue per adjusted admission; (3) reducing labor costs as a share of expenses; (4) controlling non-labor costs such as drugs and supplies; and (5) stabilizing operating margins.
- Beckers published a roundup of 39 health care M&A deals that were finalized in 2025 around the country. States seeing the most deals were PA, OH, GA and NY. Hall Render attorneys and advisors assisted in some capacity with at least six of the transactions.
- Atrium Health recently expanded its efforts to improve housing security as a key driver of health outcomes, particularly in addressing homelessness and related mental health challenges in the Charlotte area. The health system is supporting these efforts through sustained financial investments, development partnerships, advocacy initiatives and programs that integrate housing with medical and behavioral health care.
- Centra Health (Lynchburg, VA) is undertaking more than $600M in capital investments, including a $400M, three-year construction project adding a six-story, 266k-sf tower scheduled for completion in 2028, the $100M Centra Langhorne Medical Center that opened in December and the $106M Centra Simons Run Medical Campus expected to open in 2026.
- Clarkson Regional Health (Omaha, NE) recently offered to sell its share of Nebraska Medicine to the University of Nebraska Medical Center for $500M, and it offered to sell several nearby Clarkson-owned properties for an additional $300M. The proposed transaction, which is pending Board approval, also includes a pledged $200M gift from Clarkson.
- Marshall Medical is replacing aging solar equipment at its Cameron Park (CA) location with a new 1.09-megawatt photovoltaic system, financed with a $3M loan from the State of California. The new system is expected to save over $500k in annual utility costs.
- Ascension Wisconsin is set to begin a $7.3M renovation project at its St. Francis Hospital in southern Milwaukee, as part of a $10M effort to create a comprehensive behavioral health hub within the hospital.
For more information, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
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.
