Weekly Health Care Real Estate Briefing: MPT to Lease Entire Utah Hospital Portfolio to CommonSpirit | CMS Proposed Rule on Nursing Home Transparency | HCRE Advisor Podcast Features Colliers’ Kim Kretowicz

Medical Properties Trust will lease its $1.2 billion Utah hospital portfolio to CommonSpirit Health following CommonSpirit’s acquisition of Steward Health Care System’s Utah operations. Centura Health will manage the facilities, and the lessee will have the option to purchase the facilities at the higher of FMV or MPT’s gross investment at 5, 10, and 15 years.
The Pennsylvania Commonwealth Court ruled that four formerly for-profit hospitals were not exempt from property tax, despite being purchased by a nonprofit entity. In denying the exemption, the court pointed to “eye-popping” salary and bonus compensation paid to executives at the facilities.
In the latest episode of Hall Render’s Health Care Real Estate Advisor Podcast, Andrew Dick sits down with Kim Kretowicz, Senior Managing Director at Colliers Healthcare Investment Services, to talk about her role at Colliers and trends in the health care real estate industry.
CMS released a proposed rule to require nursing homes to disclose more information regarding their ownership and management, including information related to assets held by real estate investment trusts (REITs) and private equity firms. A CMS press release indicated that the impetus for the proposed rule was research showing that resident outcomes are significantly worse at private-equity owned nursing homes.
UChicago Medicine announced plans for a 575,000 sf facility, which will be the first freestanding cancer facility in the City of Chicago and will cost approximately $815 million. A certificate of need application was filed with the state review board earlier in February.
Consumer price index data for January 2023 (released on Feb. 14) showed that prices rose by 6.4% over the prior 12-month period, down slightly from a year-over-year rise of 6.5% in December and down from a 40-year high of 9.1% in June 2022.
The National Association of Realtors released a report displaying migration patterns in 2022. After millions of Americans relocated during the pandemic, 2021 had a historically low moving rate, and the data shows even fewer Americans moved in 2022. For those who did relocate in 2022, the top states with the highest net influx include Florida (particularly Ocala, Tallahassee, and Deltona), Texas (particularly Houston), and the Carolinas (particularly Charlotte, NC and Myrtle Beach, SC). California, New York, New Jersey, and Illinois experienced the most flight.
West Virginia’s House of Delegates passed a bill that removes birthing centers from the state’s CON requirements, although these facilities would still need to obtain state licensure. The bill comes on the heels of the state passing a nearly-total ban on abortion in September.
A bill was introduced in the Georgia General Assembly which would exempt parties wishing to build an acute-care hospital in rural counties from Georgia’s CON law. The legislation would apply to counties with fewer than 50,000 residents.
Architecture firm Gensler unveiled a new conceptual plan to overhaul New Jersey’s sole public hospital for $1.8 billion. The expenditure has remained, for the most part, unfunded with a promised donation from the state for $200 million.