- United Healthcare Group’s fourth-quarter earnings increase by 17% to $4.9 billion. Overall, its 2022 earnings rose 16% to $20.1 billion on revenue of $324 billion, a large increase from the previous $288 billion in revenue in 2021. This news comes on the heels of hospital providers reporting a tough year with many posting negative margins.
- From 2021 to 2022, a new report indicates that there was an 84% increase in health care bankruptcies. The number of large health care bankruptcy filings in Q4 2022 was almost 3 times the number of filings in Q1 2022. The main drivers of the increase in filings were increased labor and supply costs, interest rate increases, lack of government stimulus funds and lower investment returns.
- Mortgage Bankers Association released the results of its Commercial Real Estate Finance Outlook Survey which highlights several key trends: 1) the office market has negatively affected the lending market; 2) there are more deals looking for debt than debt looking for deals; 3) borrowing and lending volumes are expected to decline; and 4) cap rates, valuations, base interest rates and mortgage spreads are having a negative impact on financing activity.
- The Kaiser Family Foundation released a summary of all of the Medicaid Waivers (section 1115) that are pending or that have been approved by each state. Each waiver provides states with an avenue to test new approaches in Medicaid funding that differ from what is required by federal statute. Arizona, Arkansas and California are all working on programs to use Medicaid resources to provide housing-related assistance.
- In the latest episode of Hall Render’s Health Care Real Estate Advisor Podcast, Joel Swider sits down with Matt Ghanem, CEO and Co-Founder of National Breathe Free Sinus & Allergy Centers, to talk about the meteoric rise of the ENT practice model. Matt discusses his approach to site selection, actual vs. theoretical risk, and how the right clinical model can be a net positive for both physicians and patients.
- Post Acute Medical and Select Medical both announced plans to build new inpatient rehab hospitals in the same technology park in Pennsylvania.
- The Kirkwood Institute is challenging Iowa’s certificate of need (“CON”) law that restricts opening new birthing centers by suing the Iowa Health Facilities Council. The group notes that home birth is legal, although opening a birthing center requires a prospective operator to go through a “complex, lengthy and expensive certificate-of-need process.”
- According to a report from Beacon Center of Tennessee, CON activity in Tennessee has been decreasing in recent years. In 2004, 122 CON applications were filed compared to 36 in 2021 and only 18 in 2022.
- Mercy Health announced plans to develop 40 to 50 housing units on its campus in Springfield, Ohio that is primarily designed for hospital staff members. Memorial Hospital in New Hampshire is considering buying land to build affordable housing for its staff members as well.
- Florida State University and Tallahassee Memorial broke ground on a new medical campus located on 87 acres in Panama City, Florida that will include an emergency center, surgery center, medical office building and urgent care center.
- McLaren Health is looking for a Manager of Corporate Real Estate. Check out the position description here.
For more information on real estate matters, 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 contact.
Special thanks to Thomas Dziwlik, undergraduate intern, for his assistance in the preparation of this article.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
