Our Health Care Real Estate Briefing is your comprehensive summary of weekly health care real estate highlights currently happening across the nation.
News about health care workforce issues continues to make headlines. Last week, the American Hospital Association urged Congress to deal with the health care staffing issues, calling it a “national crisis.” The American Health Care Association responded to claims the authors of a USA Today article made about skilled nursing facilities (“SNFs”) and the number of deaths at SNFs during the pandemic. Data about SNF staffing, reimbursement rates and claims data is also making headlines. In other news, large health care systems continue to announce new construction projects.
1. The American Hospital Association has asked Congress to address workforce challenges facing health care facilities that it calls a “national crisis.” AHA is asking for additional funding for physician residencies, nursing schools, loan forgiveness, faster review times for international health care workers requesting visas and legislation addressing anticompetitive behavior from staffing agencies per Becker’s Healthcare.
2. SNFs are turning down new patient referrals because of staffing shortages according to CarePort, powered by WellSky® data. 65% of referrals to SNFs were rejected in January and staffing is one of the primary issues. Additionally, SNFs have lost 15% of their workforce since the start of the pandemic per Skilled Nursing News.
3. Affordable workforce housing continues to be a problem for hospitals recruiting new staff members. The hospitals in Martha’s Vineyard and in Nantucket have invested millions of dollars in workforce housing for new recruits, and the median home price in Martha’s Vineyard is $1.3M per Martha’s Vineyard Times.
4. The AHCA/NCAL responded to a series of articles in USA TODAY that focused on the number of deaths in SNFs during the pandemic. AHCA argued that SNFs were pleading for testing, PPE and staffing support during that time and little aid was provided. The average age of SNF residents is 85. CDC mortality rates for residents 85 years old or older is 340 times higher than those of 18 to 29 years of age.
5. New professional liability claims data was released for assisted living facilities (“ALFs”) and SNFs, including 54% of all claims in ALFs and 36% of all claims in SNFs involve an allegation of a fall, and the average cost to resolve a claim is around $250K per McKnight’s Senior Living.
6. Cleveland Clinic plans to open its $1B London hospital this month. Things to know – the Clinic signed a 123-year lease for the property, the hospital has 184 beds, is 8 stories with 325K sf and is located near Buckingham Palace per cleveland.com.
7. Tarrant County Texas officials are reviewing design and construction proposals for a massive overhaul of the JPS Health Network. The projects are estimated to cost $1.2B and plans include 4 medical homes that offer comprehensive outpatient care per Fort Worth Star-Telegram.
8. Health First announced new details on its plan to build three mixed-use wellness villages in Melbourne, Merritt Island and Palm Bay, FL. The projects were originally estimated to cost $600M – will move its Cape Canaveral Hospital to the Merritt Island site per Orlando Business Journal.
9. Medical Properties Trust, Inc. and Macquarie Infrastructure Partners announced a JV for 8 hospitals in Massachusetts that were previously owned by MPT per Business Wire.
10. Bon Secours is selling an old hospital campus in Norfolk, VA that includes 904K sf of clinical space and sits on a 15-acre campus. The price is negotiable per Hampton Roads Business Journal.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot—outside of an attorney-client relationship—answer specific questions that would be legal advice.
