- The Federal Reserve slashed interest rates by a quarter-point, the third consecutive meeting where it has lowered borrowing costs. For 2025, the Fed projected just two rate cuts, down from the four the Fed had predicted in September.
- Health systems have increased the rate at which they are buying back outpatient medical buildings from third-party investors. Revista opined that the repurchase of MOBs is a natural outgrowth of the fact that outpatient medical services generate more than 50% of net patient revenue for health systems.
- Both Universal Health Services and Acadia Healthcare recently reported they are expanding their behavioral health services to address increasing demand, focusing on opening new facilities, forming joint ventures and adding beds to existing locations. These strategies aim to alleviate industry-wide bed shortages and adapt to Medicaid reforms.
- At least 7,000 pharmacies have closed since 2019, according to a recent report. The National Community Pharmacists Association also estimated that an average of at least one independent drugstore has closed per day in 2024. The closure of independent pharmacies can pose particular difficulties for access to prescriptions in rural communities.
- Despite concerns that telehealth might increase unnecessary diagnostic imaging, a recent study found that telehealth visits resulted in significantly fewer imaging orders compared to in-person visits.
- Compared with 2024, private equity investment in health care is expected to rebound in 2025, driven by anticipated lower interest rates, the stalling of state-level regulatory oversight bills and the inauguration of a new presidential administration. Investors are likely to focus on sectors such as health care information technology and administrative support services, which are perceived as safer investments compared to physician practice investments.
- Nonprofit hospital operating margins remained steady in October, with a 6.5% average monthly margin driven by significant outpatient revenue growth, according to Kaufman Hall. However, rising costs for supplies, drugs and labor remain a challenge.
- A prominent behavioral health provider was targeted by a recent NY Times investigation. The Times alleged that the provider failed to require counseling for methadone patients, falsified medical records used to bill insurers and gave counselors a higher caseload than legally allowed.
- Pharma giant Amgen announced a more than $1B investment through 2029 to expand its operations in Holly Springs, NC. This follows on the heels of a $550M manufacturing facility in Holly Springs which broke ground in 2022 and remains under construction.
- According to a recent survey of primary care patient preferences, patients overwhelmingly (87%) prioritize in-network insurance providers. Additionally, 88% of respondents preferred in-person care over virtual visits, which is up from 82% the year before, and 79% of patients also reported booking appointments within 20 miles of their home.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
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.
