- CMS’s minimum staffing rule for skilled nursing facilities (“SNFs”) continues to make waves in the SNF industry. According to a new article, only one in five SNFs currently meets all the staffing requirements. Of the SNFs that meet the minimum staffing requirements, about 41% are owned by non-profit corporations and 10% by for-profit entities.
- The National Association for Business Economics released its latest economic forecast. The forecast predicts inflation to remain around 2.6% for the remainder of the year, which could lead the Federal Reserve to cut interest rates by 50 bps later this year. Earlier predictions showed a more modest level of inflation with a potential interest rate cut of 75 bps.
- CommonSpirit provided details on its business strategy in a recent call with investors. Key takeaways: 1) the health system will not pursue any of the Steward Health assets; 2) it will consider exiting lower-performing markets; 3) investments in behavioral health, home health and surgery centers will be a priority; and 4) the health system will be working with payers to ensure timely payments, address claim denials and adherence to contract terms.
- A new article summarizes the changes to Tennessee’s Certificate of Need (“CON”) program. The changes remove CON requirements for new hospitals in rural areas and will allow hospitals to establish their own free-standing emergency departments within 10 miles of their hospital campus.
- Health Facilities Management published an article on how to make the case for capital improvements in health care facilities. Key takeaways: 1) existing buildings represent a substantial item on any health care organization’s balance sheet; 2) without capital improvements, buildings will deteriorate at an accelerated rate and their values will erode; and 3) instead of thinking about the ROI of capital improvements, think about the “risk of inaction”.
- There are 3,000 fewer retail pharmacies in the U.S. today compared to 2019. Retail pharmacies are downsizing their real estate footprint as a result of competition from online retailers and discount stores like Aldi, Dollar General and Walmart. CVS has reduced its real estate footprint by 10%. Even with its smaller real estate portfolio, about 85% of Americans live within 10 miles of a CVS.
- Summit Healthcare REIT sold 8 SNFs in the Hartford, CT area to iCare Health Network for $60M.
- Nationwide Children’s Hospital broke ground on a new 14-floor bed tower project, underground parking garage and ER expansion at its Columbus, OH campus that is estimated to cost $1.27B. The project is part of a $3.3B strategic plan announced by the hospital system several years ago.
- Intermountain Health is investing in affordable housing in certain markets. The health system has invested $110M to date, primarily in loans for affordable housing projects, when traditional financing options aren’t available. An Intermountain executive said, “We view safe, healthy, and affordable housing as a prerequisite to achieving good health…”
- Becker’s released the top physician specialties ranked by compensation. The top 5 specialties in terms of compensation are 1) neurosurgery; 2) thoracic surgery; 3) orthopedic surgery; 4) plastic surgery; and 5) oral surgery.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
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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.
