- Corewell Health unveiled a $1.7B plan to build two hospital towers in Michigan: an 11-story, 780k-sf facility at Butterworth Hospital in Grand Rapids and an eight-story, 423k-sf tower at Beaumont Troy Hospital. The projects will add 360 private rooms and are expected to open in 2030.
- Moody’s recently reported nonprofit and public hospital profitability softened in FY 2025, with median EBITDA margins falling from 6.2% to 5.9% and operating margins declining from 1.3% to 1.2%. Revenue grew 8.9%, narrowly outpacing 8.5% expense growth. The largest pressure points remain labor, staffing and supply costs.
- A former elementary school in Waterbury, Connecticut will be redeveloped into a 47-unit affordable housing complex tailored to health care workers. The $15M project is backed by $11.6M in state funding and sits directly across from St. Mary’s Hospital and near Waterbury Hospital.
- Real estate investment firm The Landes Group acquired Encore Medical Center, a 53-bed, 108k-sf heart hospital in Bryant, AR, for $131M. The firm also signed a long-term sale-leaseback agreement with the University of Arkansas for Medical Sciences (UAMS).
- Florida’s public hospital districts and health systems could lose $323M in property tax revenue over three years if voters approve a constitutional amendment on the ballot in November 2026. So-called Amendment 3 would expand homestead exemptions and reduce assessment growth caps for non-homestead properties, thereby reducing funding to public hospitals.
- The hospital land-banking trend continues. ChristianaCare bought 24 acres near its Stanton, DE, campus for $24M to be held for future development, while Nationwide Children’s Hospital purchased a 3.6-acre block adjacent to its growing Columbus, OH, campus for $7.6M. Neither health system has announced specific development plans.
- PeaceHealth and Lifepoint Rehabilitation will open a $76M, 42-bed, 67k-sf inpatient rehabilitation hospital in Springfield, OR. The facility, expandable to 60 beds, will replace RiverBend Hospital’s 27-bed rehab unit and free that space for general medical beds.
- Recent Revista data showed which markets are trending toward provider-owned MOBs, and which have been trending toward investor-owned MOBs. Columbus (OH), Milwaukee and the major California markets are trending toward provider-owned MOBs, while Birmingham, Philadelphia, Charlotte and Phoenix are trending toward investor-owned buildings.
- Becker’s published a roundup of 33 recent behavioral health projects by hospitals and health systems that totaled more than $730M in aggregate investment. Large projects include a 292-bed state psychiatric hospital in Texas in conjunction with UT Southwestern Medical Center, Riverside Healthcare’s (Kankakee, IL) $30M modernization, OSF HealthCare’s (Urbana, IL) 65-bed expansion and Akron Children’s 30-bed unit.
- UNC Health and Duke Health plan to break ground in late 2027 on a previously announced $2B to $3B, 570-bed children’s hospital campus in Apex, NC. The project recently secured $208M in additional state funding, while the systems pursue a $1B private fundraising campaign.
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.
