Hospitals are continuing to shift care to outpatient settings as financial pressures mount, according to a recent report. While inpatient volumes remained relatively stable, outpatient revenue climbed 8% year to date, reflecting the industry’s ongoing transition toward lower-cost care sites. At the same time, hospital operating margins declined as labor costs, expenses and uncompensated care continued to rise.
Over 100 rural hospitals have closed in the U.S. over the last decade, and roughly one-third of all rural hospitals remain at risk.
Recent amendments to the Stark Law have significant implications for healthcare real estate transactions, according to a Savills white paper. These changes include an updated definition of fair market value and general market value to be more specific to healthcare transactions, which impacts how lease and service agreements are structured under the law’s exceptions.
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