Articles and Blogs

As we prepared this week’s briefing, one industry trend stood out: Rising construction costs are driving more adaptive reuse projects. Over the past year, more clients have explored repurposing office buildings, senior living communities and specialty hospitals for alternative uses. Below are five adaptive reuse projects that crossed our desks during that period. Behavioral... READ MORE

Alice L. Walton Foundation and Mercy have broken ground on AWSOM, a 120-acre health care campus in Bentonville, AR. The specialty care and whole-health destination will include cardiac services in partnership with Cleveland Clinic, as well as cancer, orthopedic and gastroenterology programs designed to serve patients across multiple states. Sutter Health will use proceeds... READ MORE

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... READ MORE

Corewell Health unveiled a $1.7B plan to build two hospital towers in Michigan: an 11-story, 780k-sf facility at Butterworth Hospital in Grand Rapids and an eight-story, 423k-sf tower at Beaumont Troy Hospital. The projects will add 360 private rooms and are expected to open in 2030. Moody’s recently reported nonprofit and public hospital profitability... READ MORE

As hospitals and health systems face mounting financial pressures, many are pursuing strategies to reduce costs and unlock additional value from their real estate portfolios. Below are five approaches we are seeing in the market. Development Services – Some hospitals are acquiring more land than needed for new facilities, while others are purchasing available... READ MORE

Several large construction projects are underway in the Atlanta metro area. Key projects include Grady’s proposed $1B medical campus in Union City, a new teaching hospital planned by Atrium Health in Adair Park, a $1B Wellstar hospital and a Centurion Foundation/Emory Healthcare project at Northlake Mall. The Cato Institute compared health care services in... READ MORE

Each year, hospital and health care real estate leaders face a rapidly evolving landscape of market, regulatory and operational challenges. To better understand where the industry is headed, we’re conducting a brief survey of hospital and health care real estate professionals across the country. We’re interested in learning: The issues keeping you up at... READ MORE

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... READ MORE

Connecticut adopted sweeping changes to its certificate-of-need (“CON”) program. Among other changes, the reforms are intended to narrow certain review requirements, adjust thresholds for when approval is needed and create a more predictable path for some facility and service-line projects. The changes reflect continued state-level attention on streamlining CON approvals. Intermountain Health and AdventHealth... READ MORE

According to a recent report, cardiology outpatient strategy is shifting towards ambulatory surgery centers (“ASCs”) and away from hybrid office-based lab/ASC models to streamline staffing, space and back-office functions. Many health systems are prioritizing cardio ASC developments that are physically connected to, or in close proximity with, hospitals to support clinical integration and quality oversight. Nearly one... READ MORE