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The U.S. Department of the Treasury (“Treasury”) and the IRS recently proposed regulations that would deny § 501(c)(3) tax-exempt status to private schools that maintain race-based admissions, scholarship or related programs. While the proposal is directed at educational institutions, the preamble contains important lessons for health care foundations and other charitable organizations managing donor-restricted funds.
In discussing the potential impact of the rule, Treasury expressly acknowledges that donor-imposed restrictions may require modification. The preamble notes that where “a race-based
Continue Reading Health Care Philanthropy Update: Treasury’s Proposed Rule Offers Lessons for Foundations on Donor Intent and Endowment Management

The Wisconsin Division of Quality Assurance (“DQA” or the “agency”) recently issued Wisconsin – 26-001, which addresses surveyor access to provider records during assisted living surveys. The guidance applies to Adult Family Homes (“AFHs”), Community-Based Residential Facilities (“CBRFs”) and Residential Care Apartment Complexes (“RCACs”). DQA’s memo confirms that providers utilizing electronic record systems must provide surveyors with read-only login credentials, rather than limiting access to printed records or provider-generated electronic reports.

The memo reflects DQA’s position that surveyors
Continue Reading Wisconsin Assisted Living Update: Wisconsin DQA Requires Surveyor Access to Electronic Health Records

On August 11, 2026, the Health Resources and Services Administration (“HRSA”) released its Health Center Program Scope of Project Policy Manual (“Scope Manual”), providing comprehensive guidance on what constitutes a health center’s approved scope of project under Section 330 of the Public Health Service Act. The Scope Manual became effective immediately upon release.

Federally Qualified Health Centers (“FQHCs”) and “look-alikes” cannot add a delivery site, new service category or expanded target population without prior approval from HRSA via
Continue Reading HRSA’s New FQHC Scope of Project Manual Affects Provider-Patient Relationships, Arrangements with Other Providers and 340B Operations

  • Corewell Health unveiled a $1.7B plan to build two hospital towers in Michigan: an 11-story, 780k-sf facility at Butterworth Hospital in Grand Rapids and an eight-story, 423k-sf tower at Beaumont Troy Hospital. The projects will add 360 private rooms and are expected to open in 2030.
  • Moody’s recently reported nonprofit and public hospital profitability softened in FY 2025, with median EBITDA margins falling from 6.2% to 5.9% and operating margins declining from 1.3% to 1.2%. Revenue grew 8.9%, narrowly

  • Continue Reading Weekly Hospital Real Estate Briefing: Nonprofit Hospital Margins Tighten | Corewell Unveils $1.7B Expansion | Hospital Land-Banking Continues

    The Indiana Court of Appeals (the “Court”) reversed a trial court’s temporary commitment order, holding the evidence did not clearly and convincingly establish the patient was gravely disabled. Although the evidence supported the patient suffered from mental illness and exhibited symptoms associated with a manic episode, the Court concluded the evidence did not demonstrate those symptoms resulted in an inability to function independently. In re Civil Commitment of E.R., No. 26A-MH-1878, 2026 WL 2427159 (Ind. Ct. App. Aug. 19,
    Continue Reading Indiana Court of Appeals Reverses Temporary Commitment Where Evidence Did Not Establish Grave Disability

    On May 20, 2026, the Department of Health and Human Services Office of Inspector General (“OIG”) posted a favorable opinion, AO 26-11, regarding an arrangement in which a precision oncology company (“Requestor”) offers eligible patients undergoing a colorectal cancer screening test (“CRC Screening Test”) a free supplemental report (“Supplemental Report”) to identify risk of other cancer types (the “Arrangement”). Although the Arrangement could generate prohibited remuneration under the Beneficiary Inducements Civil Monetary Penalty Law (“CMP”) and the federal
    Continue Reading When Free Is Permissible: OIG Allows Free Supplemental Cancer Screening Reports for Eligible Patients

    On August 27, 2026, the Centers for Medicare & Medicaid Services (“CMS”) announced that the moratorium on accepting Medicare supplier enrollment applications for Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (“DMEPOS”) suppliers, which went into effect on February 27, 2026, has expired.

    The National Provider Enrollment Contractors are once again accepting initial enrollment applications from DMEPOS suppliers.
    Practical Takeaways

    • DMEPOS suppliers seeking to submit applications to CMS should submit as soon as possible before the bidding window opens for


    Continue Reading DMEPOS Supplier Enrollment Opens as Medicare Moratorium Expires

    The Indiana Court of Appeals (the “Court”) affirmed a trial court’s temporary commitment order, holding that clear and convincing evidence supported the trial court’s findings that the patient’s persistent paranoia, inability to manage her medications, impaired ability to communicate and provide for her basic needs, and continued need for emergency medication supported the commitment despite her history of voluntarily seeking treatment. In the Matter of the Civil Commitment of S.W., No. 26A-MH-1933 (Ind. Ct. App. Aug. 18, 2026) (unpublished).
    Continue Reading Indiana Court of Appeals Affirms Temporary Commitment Where Paranoia Impaired Patient’s Ability to Function Independently

    On August 4, 2026, the Centers for Medicare & Medicaid Services (“CMS”) published the Fiscal Year (“FY”) 2027 Inpatient Prospective Payment System (“IPPS”) Final Rule (the “Final Rule”), which can be found here. The Final Rule is effective October 1, 2026, and includes several updates affecting Graduate Medical Education (“GME”) and Nursing and Allied Health (“NAH”) education programs under Medicare. These updates include: (i) modifications to the criteria for determining whether a residency program qualifies as a “new
    Continue Reading CMS Changes to Graduate Medical Education in 2027 IPPS Final Rule

    As hospitals and health systems face mounting financial pressures, many are pursuing strategies to reduce costs and unlock additional value from their real estate portfolios. Below are five approaches we are seeing in the market.

  • Development Services – Some hospitals are acquiring more land than needed for new facilities, while others are purchasing available parcels near existing campuses. The hospitals plan to act as a developer to develop complementary uses, such as senior living communities, surgery centers, medical outpatient

  • Continue Reading Weekly Hospital Real Estate Briefing: Five Strategies to Generate Revenue and Reduce Real Estate Costs

    Why Commercialization Readiness Should Come Before Spending Development Dollars
    The greatest legal risks in commercialization often arise before anyone uses the word “commercialization.” Long before an innovation or research asset is licensed, transferred, deployed or otherwise commercialized, a startup is formed or an industry partner is identified, research organizations make decisions that affect ownership, control, regulatory strategy, payment pathways and future economic value. By the time proof of concept is achieved, many of those decisions are difficult, expensive or
    Continue Reading Innovation, Ownership and Opportunity: Why Commercialization Begins During Clinical Research, Not After

    The U.S. Department of Homeland Security (“DHS”) has issued a proposed rule that, if finalized, would impose a new $103,265 filing fee on cap-subject H-1B petitions, in addition to existing filing fees. DHS has indicated that the fee is intended to recover a portion of the federal government’s cost of administering the lawful immigration system and support immigration-related operations across multiple federal agencies.

    The proposed fee would apply broadly to cap-subject H-1B petitions, including petitions eligible for the advanced
    Continue Reading DHS Proposes New $103,265 Fee for Cap-Subject H-1B Petitions

    On August 18, 2026, the U.S. Food and Drug Administration’s (“FDA”) Digital Health Center of Excellence, within the Center for Devices and Radiological Health (“CDRH”), released a discussion paper seeking public comment on how the agency should approach generative artificial intelligence-enabled (“GenAI”) medical devices. FDA emphasized that the paper is intended for discussion purposes only: it does not represent draft or final guidance, propose or implement policy changes, communicate proposed or final regulatory expectations or address whether the approaches
    Continue Reading FDA Seeks Input on the Future of GenAI-Enabled Medical Device Oversight

    On August 4, 2026, the United States Department of Justice (“DOJ”) on behalf of the Office of Inspector General (“OIG”) of the U.S. Department of Health and Human Services announced it had entered into a $14.1M settlement with Complete Health Partners Holdings (“Complete Health”), a Florida management services organization (“MSO”), to resolve allegations that Complete Health submitted false risk adjustment scores in violation of the False Claims Act. As an MSO, Complete Health provides non-clinical administrative and operational support
    Continue Reading Compliance Program Lessons from the Complete Health Settlement

  • Years after Wellstar closed one of only two level 1 trauma centers in Atlanta, several large construction projects are underway in the metro area. Key projects include Grady’s proposed $1B medical campus in Union City, a new teaching hospital planned by Atrium Health in Adair Park, a $1B Wellstar hospital and a Centurion Foundation/Emory Healthcare project at Northlake Mall.
  • The Cato Institute compared health care services in states with certificate of need (“CON”) laws and those without. The research

  • Continue Reading Weekly Hospital Real Estate Briefing: Atlanta’s Hospital Building Boom | HCA Expands Texas Urgent Care Footprint | $400M Development JV

    Last week saw two major federal policy actions related to the provision of gender-affirming care to minors. On August 11, 2026, CMS issued a final rule entitled “Prohibition on Federal Medicaid and Children’s Health Insurance Program Funding for Sex Rejecting Procedures Furnished to Children” (the “Final Rule”). On August 13, 2026, the U.S. Department of Health and Human Services (“HHS”) published the report and accompanying documentary “Wolves in White Coats: How Doctors and Hospitals Pushed and Profited from the
    Continue Reading CMS Final Rule and OIG and DOJ Referrals Signal Heightened Focus on Pediatric Gender-Affirming Care