- The U.S. Department of Labor released new Consumer Price Index (“CPI”) Data. The November CPI, for the period over the past 12 months, rose to 7.1%, down from 7.7% in October. The CPI peaked at 9.1% in June.
- A growing number of health care companies have received credit downgrades over the past few months according to new data from Moody’s. About 80% of U.S. health care companies now have a speculative credit rating. Over the past few years, health care companies have taken on large amounts of debt to pursue M&A opportunities. Rising interest rates and increased labor costs are having a negative impact on health care credit profiles.
- Colliers released four health care stats to watch – 1) Health care employers will need to hire 1.1M nurses by 2026; 2) U.S. health care spending will be $370 billion higher by 2027 as a result of inflation; 3) Nursing home spending has increased 10% year over year; and 4) Health care M&A hit a record high in terms of volume in Q2 of 2022.
- Nuveen released its 2023 Real Estate Outlook. Key takeaways include: 1) Private real estate outperformed most sectors in 2022; 2) Rising interest rates are causing cap rates to increase and sale prices to decline; 3) 2023 will likely have slower growth; and 4) Property sectors like medical office and senior housing will benefit from demographic demands and the need for new therapeutics will support demand for life science real estate.
- Hall Render is hosting its annual Practical Health Retreat for health care executives and hospital and health care board members from February 2 – 4 in Sarasota, Florida. Message adick@hallrender.com for more details.
- The Kaiser Family Foundation released new data on the average life expectancy among large and wealthy countries. In the U.S., the average life expectancy was around 76.1 years in 2021, down from 78.8 years in 2019. The effects of Covid-19 have had a big impact on life expectancy. Japan and Switzerland have the highest life expectancy with an average of 84 years. The U.S. has the lowest life expectancy among its peers even though it spends far more on health care.
- Housing is health care. According to a new article, the average life expectancy of an unhoused person in the U.S. is 52.6 years of age compared to 78.6 for those who have housing.
- The University of Michigan announced plans to acquire Sparrow Health System (6 hospital system in Central Michigan) and to invest $800 million into Sparrow over the next eight years.
- Michael Seton, CEO of Sila Realty Trust, announced plans to pursue a public listing on one of the major stock exchanges in the near term. Sila owns 132 health care properties, including ASCs, hospitals, MOBs and long-term care facilities.
- Nashville officials have tentatively settled a lease dispute that will allow Nashville General Hospital to continue operating in several buildings owned by Meharry Medical College. The agreement includes a $6.3 million rent payment to use the buildings this year. Rent will increase by 2.5% per year through December 2027 when the agreement ends. Nashville General is currently looking for a new home after operating in its current location for 25 years.
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.
