Lexology December 27, 2024
Fed Lowered Interest Rates
In 2024, the Federal Reserve lowered the federal funds rate three consecutive times. The Fed cut the rate by 50 basis points in September, followed by 25-point reductions in November and December. The December rate cut reduced the federal funds target range upper limit from 4.75% to 4.50%, the lowest level since February 2023.
Lower interest rates led to reduced borrowing costs, giving health care organizations more access to capital and increased flexibility to invest in capital expenditures, including renovation projects. However, these tailwinds were countered by headwinds from rising construction costs and delays.
Bankruptcy of Steward Health Care Spurred Increased Hospital M&A Activity
Steward Health Care’s filing for Chapter 11 bankruptcy reshaped hospital M&A activity...
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