Articles and Blogs

JLL’s Valuation Advisory group released its 2023 Healthcare Investor Survey and Trends Outlook. Among the report’s highlights: Cap rates have risen 50 bps and are likely to continue upward until the middle of 2023; medical office occupancy has ticked back up since 2020, making MOBs the largest investment opportunity in 2023; and the shift to…Read More

On February 13, 2023, the Centers for Medicare & Medicaid Services (“CMS”) proposed a rule, found here, to implement certain sections of the Affordable Care Act (“ACA”) that would require the disclosure of certain ownership, managerial and other information regarding Medicare-participating skilled nursing facilities (“SNFs”) and Medicaid-participating nursing facilities (“NFs”). The purpose of the proposed…Read More

The Biden Administration recently announced that the COVID-19 public health emergency (“PHE”) will end on May 11, 2023. All current waivers that have not already been extended by Congress beyond the PHE (e.g., telehealth and Hospital at Home) will terminate along with the PHE. This includes the Stark Law blanket waivers related to COVID-19 physician…Read More

More than one year after its effective date, the Centers for Medicare and Medicaid Services (“CMS”) has started investigating consumer complaints alleging provider violations of the No Surprises Act. The No Surprises Act generally: (1) prohibits balance billing for out-of-network emergency services, non-emergency services provided by out-of-network providers at in-network facilities and air ambulance services;…Read More

The Department of Labor’s Wage and Hour Division (the “WHD”) recently issued a new opinion letter on February 9, 2023 – the first opinion letter issued that addresses a question related to the FMLA since 2020. This opinion letter addresses the question of whether an eligible employee with a serious health condition that requires limited…Read More

In May of 2020, we published an article on Managing Financial Covenants for Health Care Borrowers in a Pandemic (here). Managing financial covenants has only gotten harder for health care borrowers in the past two years. Costs have increased, governmental relief has largely ended and many health systems find themselves perilously close (or worse) to…Read More

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…Read More

In a move likely to ignite strident industry opposition, on January 30, 2023, the Centers for Medicare & Medicaid Services (“CMS”) announced finalization of its rule on Medicare Risk Adjustment Data Validation (“RADV”) audit methodology and resulting collection of overpayments from Medicare Advantage Organizations (“MAOs”). Experts estimate that the final rule will result in CMS…Read More

Background In a press release dated February 3, 2023, the Department of Justice’s Antitrust Division (“DOJ”) announced the withdrawal of three important policy statements that health systems and providers have relied upon for decades in ordering operations, setting internal protocols, and conducting diligence during transactions. The three policy statements include, Department of Justice and FTC…Read More

When an entity first decides to undertake a new capital project, one of the most important decisions it will make is choosing what kind of financing method to use. A common option for 501(c)(3) organizations, including hospitals and health care systems, is to issue tax-exempt bonds, which are obligations of a state or political subdivision,…Read More