1. Hospitalogy recently compiled statistics tracking the top health systems along several metrics, as of January 1, 2025, including total revenue (Kaiser Permanente), patient service revenue (HCA Healthcare) and patient revenue growth (BJC Health System).
  2. Health system margins dipped below 1% for the first time in 15 months, according to a recent report. The report attributed this drop to a 5.6% year-over-year increase in labor costs and a 9.1% increase in total non-labor expenses.
  3. Hall Render recently published an article on the flexibility of using the “payments by a physician” exception to the Stark Law for timeshare arrangements with referring physicians. While CMS has allowed reliance on this exception for leases since its 2020 Final Rule, several recent self-referral disclosure protocol submissions shed further light on the use of this exception for timeshares.
  4. Several Houston hospitals are accelerating construction projects to avoid cost increases from newly imposed U.S. tariffs on imports, which could significantly impact medical equipment and supply chains. A prior survey of 200 health industry experts predicted a 15% increase in health system costs due to tariffs.
  5. The closing of Crozer Health in Pennsylvania following the bankruptcy of its PE owner, Prospect Medical, has sparked debate in the state about attorney general oversight of future hospital M&A activity. At least 26 hospitals have closed in Pennsylvania in the past five years.
  6. California allocated $3.3B to establish over 5,000 residential mental health beds and 21,800 outpatient treatment slots as part of the first phase of its Behavioral Health Continuum Infrastructure Program. The program competitively awarded grants to construct, acquire and expand properties and invest in mobile crisis infrastructure for behavioral health.
  7. Several legislators reintroduced a federal bill that would establish a new federal loan and guaranty program within HHS to build or renovate mental health and substance abuse treatment facilities. The bill prioritizes facilities in high-need, underserved and rural areas, and includes specific earmarks for pediatric and adolescent care.
  8. The Moody Foundation gave a gift of over $100M to help fund the development of a $5B pediatric health care campus under construction at UT Southwestern Medical Center. This follows two other nine-figure gifts previously announced for the project.
  9. As part of its new 900,000-sf, 17-story Presbyterian Hospital bed tower in Pittsburgh, UPMC is constructing 624 prefabricated bathroom pods off-site. This innovation aims to reduce costs and construction time while maintaining consistent quality standards.
  10. Duke Health secured $540M in bonds to advance the development of a medical campus in Cary, NC. The bond term is 30 years with an initial rate not to exceed 6%. The estimated all-in true interest cost is 4.417%.

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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 Hospital Real Estate Briefing: Hospital Closings Spark Debate Over AG Oversight | Hospital Developments Brace for Tariffs | New Stark Law Insights for Timeshare Arrangements appeared first on Law Firm | Health Care Law Firm in the USA | Hall Render.