Weekly Hospital Actual Property Briefing: Hospital Closings Spark Debate Over AG Oversight | Hospital Developments Brace for Tariffs | New Stark Legislation Insights for Timeshare Preparations

1. Hospitalogy lately compiled statistics monitoring the highest well being techniques alongside a number of metrics, as of January 1, 2025, together with whole income (Kaiser Permanente), affected person service income (HCA Healthcare) and affected person income progress (BJC Well being System).
2. Well being system margins dipped under 1% for the primary time in 15 months, in accordance with a latest report. The report attributed this drop to a 5.6% year-over-year improve in labor prices and a 9.1% improve in whole non-labor bills.
3. Corridor Render lately revealed an article on the flexibleness of utilizing the “funds by a doctor” exception to the Stark Legislation for timeshare preparations with referring physicians. Whereas CMS has allowed reliance on this exception for leases since its 2020 Ultimate Rule, a number of latest self-referral disclosure protocol submissions shed additional mild on the usage of this exception for timeshares.
4. A number of Houston hospitals are accelerating development tasks to keep away from value will increase from newly imposed U.S. tariffs on imports, which may considerably affect medical gear and provide chains. A previous survey of 200 well being business specialists predicted a 15% improve in well being system prices attributable to tariffs.
5. The closing of Crozer Well being in Pennsylvania following the chapter of its PE proprietor, Prospect Medical, has sparked debate within the state about lawyer basic oversight of future hospital M&A exercise. Not less than 26 hospitals have closed in Pennsylvania previously 5 years.
6. California allotted $3.3B to ascertain over 5,000 residential psychological well being beds and 21,800 outpatient therapy slots as a part of the primary part of its Behavioral Well being Continuum Infrastructure Program. This system competitively awarded grants to assemble, purchase and develop properties and put money into cell disaster infrastructure for behavioral well being.
7. A number of legislators reintroduced a federal invoice that may set up a brand new federal mortgage and warranty program inside HHS to construct or renovate psychological well being and substance abuse therapy services. The invoice prioritizes services in high-need, underserved and rural areas, and consists of particular earmarks for pediatric and adolescent care.
8. The Moody Basis gave a reward of over $100M to assist fund the event of a $5B pediatric well being care campus below development at UT Southwestern Medical Heart. This follows two different nine-figure presents beforehand introduced for the mission.
9. As a part of its new 900,000-sf, 17-story Presbyterian Hospital mattress tower in Pittsburgh, UPMC is developing 624 prefabricated toilet pods off-site. This innovation goals to scale back prices and development time whereas sustaining constant high quality requirements.
10. Duke Well being secured $540M in bonds to advance the event of a medical campus in Cary, NC. The bond time period is 30 years with an preliminary fee to not exceed 6%. The estimated all-in true curiosity value is 4.417%.

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