- JLL reports that the medical outpatient building sector remained active entering 2026, with national occupancy reaching a record 92.7% in Q4 2025 and average rents increasing 3.3% year over year, despite reimbursement pressure and regulatory policy uncertainty. Health systems continued to drive both leasing and development activity, accounting for 46% of MOB leases and 57% of outpatient construction deliveries in 2025.
- An article highlighted five major 2026 hospital transactions, including Prime Healthcare’s acquisition of Franciscan Health Olympia Fields, RWJBarnabas Health’s agreement to acquire Englewood Health and Community Health Systems’ $450M sale of Crestwood Medical Center to Huntsville Hospital Health System. Other notable deals include proposed combinations involving NorthBay Health and Providence Queen of the Valley, in addition to Sutter Health and Allina Health.
- Orlando Health announced plans to acquire RMC Health System, a 375‑bed nonprofit hospital system in Anniston, AL, with closing expected in the fall of 2026 pending regulatory approvals. The transaction expands Orlando Health’s Alabama footprint following its 2024 Baptist Health acquisition.
- A report noted that hospitals are increasingly using energy‑as‑a‑service contracts to modernize infrastructure without upfront capital costs. The U.S. energy services market was valued at $42.7B in 2025, and recent transactions included deals at Baptist Health (KY) and Rochester Regional Health (NY).
- CMS recently released 2025 data on settlements of voluntary self-disclosures related to the Stark Law. Total aggregate self-disclosure settlements now exceed $100M. The largest settlement amount to date is $2.6M.
- An article observed that, upon arrival at a medical center, patients spend approximately 38 minutes, or 30% of each visit, traveling through the facility. The piece highlighted the importance of thoughtful wayfinding, particularly for large hospital facilities. Clear signage is also helpful when co-location and provider-based regulations are in play.
- Hospital M&A activity increased in early 2026, following a slow 2025. Some providers are selling hospitals to redeploy capital into ASCs, while other health systems are looking to acquire hospitals to reduce operating costs by bundling and renegotiating vendor contracts.
- Dana‑Farber Cancer Institute and Beth Israel Deaconess Medical Center have begun construction on an approximately $1.7B, 300‑bed inpatient cancer hospital in Boston’s Longwood Medical Area. The 450k‑sf facility is expected to open in 2031 and follows the deconstruction of the former Joslin Diabetes Center building.
- Methodist Healthcare Ministries of South Texas, which owns 50% of Methodist Healthcare, plans to invest nearly $238M in the San Antonio region in 2026. The funding will support health care access through direct services, grants and community partnerships across South Texas.
- Care New England plans to begin a $97M expansion at Kent Hospital in Warwick, Rhode Island, including a 90k-sf ambulatory services building, an expanded cardiac catheterization suite and a modernized emergency department. Construction is scheduled to start in April 2026, with the hospital remaining operational and project completion targeted for March 2028.
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- Andrew Dick at adick@hallrender.com or (317) 977-1491;
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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.
