1. Fitch Ratings’ 2026 outlook for the nonprofit hospital sector was “neutral,” and forecasts median operating margins between 1-2%, while noting largely healthy volume trends and strong balance sheets. It expects a roughly equal number of ratings downgrades and upgrades among its portfolio, and noted that the industry is still investing in patient tower and brick-and-mortar facilities.
  2. Come join our growing real estate team! Hall Render is seeking a 2-5 year attorney to join our Indianapolis office, which serves health provider clients nationwide.
  3. CBRE published a report on key health care real estate trends for 2026. Predictions include: (1) a sharp drop in new MOB supply, especially on-campus, leading to historic high MOB rents; (2) accelerated investment in CRE generally, which will spillover into increased HRE investment; (3) increased health care demand generally, driven by an aging population; (4) health policy changes reducing reimbursements; and (5) use of technology to optimize space usage.
  4. A foundation design error recently halted work on New Hampshire’s new state forensic psychiatric hospital, leaving the state to cover $5M in overruns after an insurer agreed to pay nearly $10M toward repairs. The issue will delay delivery of the 41,000-sf facility by at least nine months and highlights the importance of negotiating Owner-friendly design and construction contracts to protect against exposure for design errors and construction defects.
  5. A recent report showed health care real estate investment trusts (REITs) posted the biggest year-over-year earnings gains among property sectors, with Q3 funds from operations rising to $7.4M from $5.5M in Q2 and overall REIT funds from operations up 17.3%. These results underscore health care real estate’s resilience amid a mixed market, with occupancy holding near 93%.
  6. A recent roundup lists 17 new behavioral health projects nationwide, including a $42M conversion of the former Lakeshore Hospital in Irving, NY, into a behavioral health and substance use recovery center, a $35M youth mental health treatment facility in Grove City, OH, and a 144-bed joint venture between Fairview Health and Acadia in St. Paul, MN.
  7. Dignity Health will open a first-of-its-kind addiction recovery hospital in mid-December 2025 on the Rose de Lima Hospital campus in Henderson, NV. The 32,000-sf acute care facility will serve patients with substance use disorders and serious medical conditions. The hospital seeks to fill a critical gap by offering integrated medical and behavioral care that traditional EDs and rehab facilities cannot provide.
  8. Froedtert ThedaCare announced plans to expand its Graduate Medical Education program by building 56 townhouses next to ThedaCare Regional Medical Center-Neenah (WI), with completion expected in summer 2026. The initiative aims to combat Wisconsin’s projected physician shortage by improving retention through on-campus housing.
  9. Atrium Health approved a plan for a $450M, 200,000-sf hospital campus in Fort Mill, SC, featuring 60 beds, with construction starting in 2026 and completion by mid-2029. The project reflects Atrium’s strategy to expand into fast-growing suburbs.
  10. Saint Francis Health System opened a seven-story, $286M patient tower at its Muskogee, OK, hospital, adding 290,000 sf of upgraded rooms and infrastructure. The expansion is expected to create over 100 new jobs and generate $25M annually in economic output for the county.

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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.

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