- A recent Modern Healthcare article opined on the expected impact on health care resulting from the Democrats’ new congressional majorities. Key takeaways: (1) expect efforts to roll back 2025 Medicaid reductions and restore ACA marketplace subsidies; (2) there will likely be increased oversight of consolidation and hospital pricing; and (3) sweeping legislative changes are unlikely, given President Trump’s veto.
- A recent report indicated that higher-acuity MOBs, including properties with surgery centers, urgent care, freestanding EDs and specialized infrastructure, command average base rents nearly $5.00/sf higher than lower-acuity MOBs and also provide owners greater leverage to negotiate higher escalators.
- Novant Health acquired Northern Regional Hospital in Mount Airy, NC. This marks Novant’s second rural hospital acquisition in northwest NC in five months, followings its recent acquisition of Community Hospital of Stokes in Danbury, NC.
- Health care M&A remained strong in Q3 2026, with notable deals by systems including Intermountain Health, Sanford Health, Atrium Health, AdventHealth, Ascension and Prisma Health pursuing acquisitions, affiliations and joint ventures as providers seek scale and greater access to strategic markets.
- Hartford HealthCare bought a former Sam’s Club property in Manchester, CT, for $17M. The health system plans to convert the 138k-sf building into a centralized medication distribution center serving its hospitals and expanding its retail and specialty pharmacy operations.
- The estimated cost of expanding Harborview Medical Center in Seattle has climbed more than 70%, from the $1.74B bond package approved in 2020 to roughly $3B today, driven by inflation, tariffs, higher fuel and material costs, electrical equipment shortages and difficult site conditions. The project includes a new 14-story inpatient tower, expanded emergency capacity and seismic upgrades.
- Loyola Medicine plans to construct two new buildings in the Chicago area, at a total cost of $426M, including a $306M support services building and a $120M, 100k-sf MOB.
- Health systems are becoming more cautious about major capital projects as Medicaid cuts, thin operating margins and rising construction costs are putting pressure on finances. Major planned projects by several health systems have been scrapped, and systems still moving forward are increasingly scaling back project scope.
- California’s Jan. 1, 2030 seismic-compliance deadline is accelerating hospital renovations and replacements while also increasing lead times and competition for essential equipment and increasing costs overall.
- Harris Health (Houston, TX) is moving forward with its $3.2B voter-backed infrastructure plan, including a recently announced $8M, 15k-sf building that will offer primary care, behavioral health, pharmacy and physical therapy services. The broader project includes a new hospital, a $150M cancer center and several other inpatient expansions and new outpatient buildings.
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.
