Lexology December 6, 2024
- A recent report found that financial stability and margins improved for nearly half of rural hospitals after a merger, acquisition or affiliation with a larger system. More than a quarter of rural hospitals currently have negative operating margins.
- As inpatient stays shorten, providers are shifting capital investments from acute-care hospital facilities to outpatient construction or long-term acute-care facilities. Large outpatient investments in 2024 included over $1B by HCA, $760M by Jefferson Health and $500M by Tenet.
- Senior housing development is slowing due to constrained capital. However, some experts see opportunities in the areas of (a) middle-market communities, particularly rehabilitating older or distressed properties; (b) active adult communities; and (c) “niche communities” such as those being built by Disney and...