- President Biden said the Covid-19 pandemic was over during an interview on “60 Minutes.” Some health experts responded that the president’s declaration was premature, while others have said the Biden administration should end the public health emergency, which would cause ripple effects throughout the U.S. health care system, including telehealth and drug prescribing.
- A Kaufman Hall report released by the American Hospital Association indicated that more than half of hospitals are projected to have negative margins through 2022. Hospitals and health systems continue to face intense pressure on staff and resources while also dealing with significantly elevated expenses.
- Danielle Bergner recorded a podcast explaining the benefits of New Markets Tax Credits (“NMTC”) for nonprofit hospitals and FQHCs to assist in financing facilities located in qualified low-income areas. She explains in the podcast how the NMTC program works, how hospitals and FQHCs can access the program and how the program benefits the advancement of health care initiatives in low-income communities.
- Deloitte published its 2023 commercial real estate outlook. In a survey of 450 CFOs of major commercial real estate owners and investors, concerns about the economy and inflation remained top of mind, while ESG compliance readiness and investments in technology remained mixed. North American respondents chose logistics and warehousing as their top bet for 2023 industry growth.
- FASB is considering changes to its lease accounting rules. Prior to 2018, operating leases were disclosed as expenses on the income statement and in financial footnotes, but recent standards require operating leases to be disclosed on the balance sheet similar to how capital leases have been treated. Potential new guidance would address joint venture accounting.
- Intermountain Healthcare opened a state-of-the-art ambulatory surgery center in St. George, Utah, for orthopedic and urology surgeries that will reportedly reduce the cost of surgery by 20% to 50% for common orthopedic procedures. The site features unique recovery suites that allow patients to complete most of their recovery at home, rather than in the inpatient setting.
- Providence Mission Hospital announced it will invest $712 million in southern Orange County, California, to build two new multi-specialty medical centers and a new patient tower, among other community investments.
- Cooper University Hospital in Camden, NJ, will undergo a massive $2 billion expansion that could take a decade to complete and will increase the number of people the facility will be able to treat. Three buildings will be added to the hospital.
- Senior housing shows signs of bouncing back from the pandemic pullback with steady growth and increased demand in 1H 2022. Rent growth is up 4.7% year-over-year, and occupancy rates have grown significantly from the prior year.
- Hospitals are increasingly prioritizing flexible design in order to be prepared for future outbreaks in the wake of the Covid-19 pandemic. Some hospitals are including spaces that can “flex” between intensive care and short-stay step-down use. However, some are skeptical whether these improvements will be tenable in smaller, rural hospitals.
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.
The post Weekly Health Care Real Estate Briefing: Half of Hospitals Expect Negative Margins in 2023 | Senior Housing Bounces Back | Economy Key Fear for Real Estate CFOs appeared first on Law Firm | Health Care Law Firm in the USA | Hall Render.
