- A recent report highlighted how independent rural hospitals are increasingly forming regional networks in order to gain negotiating leverage, reduce costs and participate in value-based care while maintaining independence amid health system consolidation. One example is North Dakota’s 23-hospital Rough Rider High-Value Network, which was launched with state support and serves a large share of the state’s rural population.
- Revista reported that U.S. MOB inventory has grown about 10.6% since 2019, while ambulatory health care employment has grown 21.2%. Thus, outpatient square footage per employee has declined over this period, signifying a tightening real estate market, which drives up occupancy rates and creates greater demand for outpatient facilities.
- Deborah Heart and Lung Center (Burlington County, NJ) completed a $108M multi-year expansion and renovation project that added private patient suites, renovated procedural areas and upgraded cardiac catheterization and electrophysiology labs. The majority of the project was financed through an $88M USDA low-interest loan for rural development.
- The Oregon Health Authority granted an emergency exemption allowing Salem Health and Santiam Hospital (Stayton, OR) to proceed with a proposed merger, citing concerns that Santiam could become insolvent without the transaction. Salem Health agreed to assume $22M of Santiam’s debts, invest $61M into the hospital facility and maintain key services such as maternity and ambulance services.
- The State of California awarded $110M in Homekey+ grants to support 278 permanent supportive housing units for individuals experiencing homelessness and behavioral health challenges, including 103 units reserved for veterans. Homekey+ is financed by a $6.4B behavioral health bond whereby counties pair housing funds with local behavioral health treatment to cover ongoing care and support for residents.
- Illinois regulators approved plans for a new $231M, 108-bed hospital in Cahokia Heights to replace the aging Touchette Regional Hospital facility. The project will significantly expand behavioral health capacity, including dedicated beds for adolescents, adults and geriatric patients.
- A midyear market update anticipated that long-term demand for health care property would remain strong despite investor caution driven by interest-rate volatility, inflation concerns and geopolitical uncertainty. The firm expects acquisition activity to be lower than projected, while also noting a premium on health care property in the Sunbelt region while Upper Midwest medical properties trade at a relative discount.
- Nemours Children’s Health opened an Advanced Delivery Unit for high-risk pregnancies that combines specialized maternal-fetal care with “boutique hotel” design features intended for comfortable extended patient stays. The facility supports mothers carrying babies with significant fetal conditions and is located adjacent to intensive newborn care services.
- Beckers published a recent roundup highlighting how hospitals in 9 states are using Rural Health Transformation funds for remote patient monitoring as a way to manage chronic disease, keep patients out of the emergency department and extend clinical oversight into rural patients’ homes.
- A Cook County (IL) court has been asked to enforce a proposed settlement that would sell West Suburban Medical Center and Weiss Memorial Hospital to Insight Health Systems for $1. The dispute involves the hospitals’ owners, and the motion seeks either enforcement of the previously negotiated deal or appointment of a receiver. The hospitals reportedly owe more than $104M in state obligations.
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.
