- Hospital industry groups are opposing CMS proposals that would expand site-neutral reimbursement and modify the 340B program, arguing the changes could undermine hospital finances and future facility investment. AHA and other provider groups argued that the policy fails to account for the higher Medicare burden, increased complexity and stricter licensing, accreditation and regulatory requirements that hospital outpatient departments face as compared to independent physician offices.
- On a recent podcast interview, a Capital One health care real estate lending executive said that joint replacements in ASCs can be 40% cheaper than the same procedure done in a hospital; as a result, demand continues to rise for MOB and ASC space as investors continue pouring capital into these developments.
- Intermountain Health unveiled plans to build a new hospital on the former Sears site in downtown Salt Lake City to replace Intermountain LDS Hospital. The campus will include a 10-story hospital with more than 521k sf, along with an attached seven-story MOB. The project highlights the continued redevelopment of large retail properties for health care use.
- Two other adaptive reuse projects were recently announced. AdventHealth bought a 17-acre former retail center in DeLand, FL, for $9M in order to redevelop it into an MOB. Baptist Health South Florida acquired a former Kohl’s department store in Coconut Creek, FL, for $54M, and plans for the site are being evaluated.
- UPMC began construction on a specialty care complex at Clearview Mall in Butler County, PA, which is slated to open in 2027. The facility will house specialty physician services, expanded diagnostic imaging and ambulatory surgical services.
- The FTC signaled it will continue challenging hospital transactions it views as anticompetitive after the FTC intervened in the planned sale of Lancaster, Ohio-based Fairfield Medical Center, to steer the sale away from OhioHealth and toward alternative buyer Adena Health due to alleged competitive concerns. The agency’s position underscores ongoing regulatory risk for hospital M&A and consolidation.
- A Montana court halted construction of a proposed state mental health facility in Laurel, MT. The court ruled that the State failed to properly evaluate its water supply, capacity and daily demand, after citizens living adjacent to the site filed a complaint due to water supply problems.
- Stamford Health obtained preliminary approval for a $275M expansion that includes a new cancer center and behavioral health and inpatient rehabilitation facilities. The project would also add a new 355-space parking garage.
- Baptist Health Louisville completed a $5M expansion of its on-campus child care and development center for the benefit of its employees. The expansion reflects a growing strategy among health systems to support workforce recruitment and retention.
- Pierce County, WA approved $3M in public funding toward Trouvés Health Care’s planned 100-bed residential treatment facility in Tacoma, with Trouvés expected to contribute an additional $24M in private financing and begin construction in January 2027. The facility will provide housing, personal care and behavioral health services and reserve at least 50 beds for Medicaid-eligible residents.
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.
