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Weekly Hospital Real Estate Briefing: Kaiser Permanente Buys Land in Atlanta | Rural Hospital Report Portends Nationwide Crisis | New Saginaw Health District Details Unveiled

Posted on February 6, 2026 in Hospital Real Estate Briefing

Published by: Hall Render

  1. Kaiser Permanente recently purchased seven acres near downtown Atlanta for $31.5M. Kaiser plans to solicit community feedback before determining what type of medical facility to construct at the site. The announcement follows Atrium Health’s 2024 purchase of 40 acres in downtown Atlanta.
  2. Colliers recently published a report on challenges faced by rural hospitals. The report said small rural hospitals (under $40M in annual expenditures) comprise 25% of U.S. short-term general hospitals but receive less than 3% of hospital spending. Additionally, over 30% of rural hospitals are at risk of closing within three years. These providers are prioritizing strategic planning, innovative partnerships and advocacy in order to remain viable.
  3. Several health systems presented at a recent meeting of the Saginaw (MI) City Council to discuss the development of the “medical diamond” health district in downtown Saginaw. Planned developments in the district include a behavioral health facility, a new county health department building, medical training facilities by two institutions and complementary commercial, housing and hotel uses.
  4. Lurie Children’s Hospital of Chicago has begun planning a new pediatric hospital in Downers Grove, IL. The proposed low-acuity facility would be Lurie’s first inpatient hospital outside its main location in Chicago. Plans include a pediatric emergency department, inpatient beds, surgery suites and subspecialty services in oncology, cardiology, gastroenterology and orthopedics.
  5. UCHealth and AdventHealth are both planning to build large new hospitals in Broomfield, CO, of about 330,000 sf and 443,000 sf, respectively (plus supportive MOBs). The AdventHealth facility navigated a bumpy city approval process last year, while the UCHealth project has not yet obtained city approval.
  6. Cleveland Clinic recently announced a major expansion and modernization of its flagship campus, including the development of adult and pediatric Level 1 trauma centers expected to open in 2028. While details of the broader plan remain undisclosed, the Clinic is prioritizing completion of current projects such as the $1.1B Neurological Institute, set to open in early 2027.
  7. Corewell Health recently announced plans to expand its Butterworth Hospital campus in Grand Rapids, MI. The project is set to be a 621,000-sf facility, including a new emergency department, 180 private beds and 12 to 16 operating rooms.
  8. The Department of Veterans Affairs is set to invest $4.8B in fiscal year 2026 to modernize and upgrade its health care infrastructure, marking the largest single-year investment in the VA’s Non-Recurring Maintenance program. The funding will support facility repairs, building upgrades and electronic health record modernization.
  9. A Tennessee judge recently ruled in favor of Vanderbilt University Medical Center in its CON appeal to build a 42-bed, $144M hospital in Murfreesboro, TN, which has been pending since 2020. Competitors in the market had challenged Vanderbilt’s CON for the facility.
  10. Cincinnati-based Christ Hospital Health Network is set to begin construction of an ambulatory outpatient center in Union, KY. The $16M, 32,000-sf project is expected to open in fall 2027 and comes on the heels of a JV with Cincinnati Children’s to build a new $49M MOB in Cold Spring, KY by 2028.

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Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.