Survey Snapshot
We received over 60 responses to our recent hospital real estate executive survey. Over the next few weeks, we will highlight some of the noteworthy and surprising results on current trends, strategic priorities and challenges facing hospital real estate professionals.
When asked, “What are your organization’s top real estate priorities in 2027?,” one priority stood out: outpatient expansion.
Our Take: Outpatient and ASC expansions are nothing new but are decidedly here to stay in 2027. Health systems are finding that a hub-and-spoke model can leverage the various entry points for patients into the health system while bringing care closer to home. Hospital campuses themselves are being modernized in order to drive efficient use of space and to pull together core and ancillary services and amenities in close proximity.
Our Weekly Top Ten News Summaries
- UPMC finalized its acquisition of Trinity Health System from CommonSpirit Health, bringing four Ohio hospitals and related clinics into the UPMC network. The transaction expands UPMC’s geographic footprint in eastern Ohio.
- The AWSOM Whole Health Campus broke ground in Bentonville, AR, a more than 120-acre medical campus backed by $700M from the Alice L. Walton Foundation and Mercy, plus $50M from the Tyson Family Foundation. Plans include nearly 3M sf of facilities, more than 250 beds and 40 operating rooms.
- National Healthcare Properties will sell 40 outpatient medical facilities for approximately $531M. The REIT expects roughly $511M in net proceeds and intends to exit the outpatient medical facility segment following completion of the transaction.
- Orlando Health completed its acquisition of RMC Health System in Anniston, AL, renaming the 375-bed hospital Baptist Health Calhoun Hospital. The deal expands Orlando Health’s Alabama footprint and adds hospital, outpatient and physician practice assets, with additional capital investment planned over the next five years.
- Memorial Health (Savannah, GA) began a $350M expansion project to address regional population growth. The project will add a new patient tower, 90 additional beds and a 1,000-space parking garage.
- Baylor Scott & White broke ground on multiple construction projects across its Temple, TX, campus, including adding floors to a patient tower, expanding radiation oncology facilities, pediatric care upgrades and enhancements to campus infrastructure.
- AdventHealth acquired four properties in Orlando’s SoDo area totaling 1.75 acres for $4M. The health system has not yet disclosed plans for the assemblage of properties.
- Boston Children’s Hospital received a $10M grant from Bank of America to establish a new pediatric behavioral health campus at Franciscan Children’s in the Brighton neighborhood of Boston. The facility will integrate inpatient, outpatient and rehabilitation services to expand mental health care capacity, reduce wait times and create hundreds of local jobs.
- Larry and Heidi Canarelli pledged $50M to help fund Southern Nevada’s first standalone children’s hospital in Las Vegas, earning them naming rights to a major inpatient tower. The $1B, 200-bed Intermountain Health project is expected to break ground by the end of the year.
- According to a recent analysis, despite a more than 500 bps increase in interest rates since 2022, net lease cap rates have expanded only modestly. The implication is that investors continue to place a premium on long-term leased assets with strong tenant credit, such as medical outpatient buildings with long-term, high-credit tenants.
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.
