- The Veterans Health Administration and HCA occupy the largest amount of REIT- and investor-owned outpatient space, according to a recent Revista post; however, most health systems overwhelmingly favor owner-occupied outpatient space. On the development side, third-party development accounts for about 30% of health system MOB projects, with the remainder being self-developed.
- High-quality, well-located medical office space is increasingly difficult for health care tenants to secure, with competition intensifying in many markets as demand shifts toward suburban markets. The supply crunch is marked by a 45% year-over-year drop in new construction, driven by high borrowing and construction costs.
- At least eight states (IL, VT, CT, CA, ME, MA, OR and WA) have passed recent laws to curb private equity investment in health care real estate. Connecticut was the first to establish a blanket ban on hospital sale-leasebacks. California recently proposed an expansion to its existing health care transactions oversight regulations that would increase disclosures and would specifically target private equity and MSO relationships.
- A former hospital building and associated 14-acre parcel in Dallas is under contract to sell to a developer for a $60M mixed-use development that would feature a blend of apartments, townhomes, retail and office, with the city intending to reinvest the proceeds into housing for the homeless.
- Baystate Health has signed a definitive agreement to take over governance of the financially struggling Mercy Medical Center (Springfield, MA). The $293M transaction is structured as a member substitution, allowing the 182-bed hospital to continue operating as the same legal entity.
- The city of Rock Hill, SC, has finalized the sale of 25 acres of the former Carolina Panthers headquarters site to Novant Health for a new, $300M medical campus. The development joins several recent health care real estate investments in the vicinity, including those by Piedmont Medical Network, MUSC and Atrium Health.
- Texas has become one of the nation’s most active markets for ASC development due to its lack of CON regulations, a fast-growing population and a highly favorable outpatient business environment. However, this rapid expansion has also made the state the target of recent antitrust scrutiny, private litigation and a new CMS prior authorization pilot program.
- The Veterans Affairs Medical Center in Dayton, OH, has secured federal funding as part of a record-breaking $4.8B national infrastructure investment. This funding will be used for campus-wide upgrades, including modernizing the medical, gas and vacuum systems, alongside a major renovation of its historic Catholic chapel.
- Orlando Health unveiled plans to build a new 240-bed hospital and medical campus on a 40-acre site in Viera, FL, with construction beginning in June 2026. The new campus will start with an emergency department expected to open in 2027. The project will replace services lost when Rockledge Regional Medical Center closed after being purchased from Steward Health Care.
- Allegheny Health Network and Highmark Health have announced plans to build a new, 150,000-sf Canonsburg Hospital in Cecil Township, PA. Scheduled to open in 2029, the state-of-the-art facility will replace the current hospital and expand medical services at a 10-acre site.
For additional information on this topic, 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 or Hall Render Advisory Services contact.
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.
