Weekly Healthcare Real Estate Briefing: CMS Offers New Post-Acute Payment Model I Charitable Nonprofit Contributions Report I Lease Accounting Guide
Last week, CMS released a proposal that would change the way post-acute care providers are paid for their services. The proposal elicited negative reactions from trade associations. A number of leading physician organizations have issued a call to action urging payers and policy providers to increase funding and training available to primary care providers so they can effectively deliver health care services. behavioral health. A new report from a think tank has looked at the amount of charitable care and community benefits provided by nonprofit hospitals. Finally, a number of new hospital projects have been announced.
Friends – Here is my Monday morning real estate briefing on health care:
1. The CMS has issued a proposal to redesign the payment system for post-acute care providers (IRF, LTACH, SNF and home health agencies). Payments under the plan would be based on the cost of care and the needs of patients per Fierce Health.
2. Several physician organizations have issued a call to action urging employers, health plans, and payers to support the integration of behavioral health care services into primary care practices. The groups are calling for expanded behavioral health coverage, increased payments for behavioral services, and more training in this area by South Florida Hospital News.
3. A new report from the Lown Institute found that 82% of nonprofit hospitals spent less on charitable care and community investments than the value of their estimated tax exemptions in 2019. The report claims that nonprofit hospitals profit should use tax savings to address a variety of public health issues such as homelessness per STAT.
4. Placer.ai published a white paper on population migration during the pandemic. The key takeaways are: 1) Most migration patterns were already in motion before the pandemic; 2) Those who moved ended up moving to a neighboring suburb of a major metropolitan area; 3) Arizona, Florida, and Texas experienced population increases of 2-4%; and 4) California and New York experienced population declines of 1% to 2%.
5. Danielle Bergner, attorney at Hall Render, and John Marshall, senior adviser at Hall Render Advisory Services, published an article in Health facilities today about strategies healthcare providers can use to mitigate development risks in new projects.
6. Deloitte published an article on lease accounting guidance (ASC 842) with charts and best practices. The article notes that companies are abandoning properties, subletting space and entering into sale-leaseback transactions to generate cash.
7. Senior housing occupancy increased month over month and now stands at 81.4% nationally. The busiest markets were Boston (86.3%), Minneapolis (85.1%) and Portland (85.0%) per GlobeSt.com and Senior Housing News.
8. Ensign Services acquired 5 SNFs in Texas through its captive REIT. Ensign acquired a total of 21 SNFs this year and now has a total of 258 installations per Skilled Nursing News.
9. Howard University could receive $150 million in federal funding in fiscal year 2023 for its new hospital campus in DC Howard has already secured $107 million in funding for the hospital according to the Washington Business Journal.
10. UCSF Benioff Children’s Hospitals is considering a new lease of 150,000 to 175,000 square feet of office space in Oakland. The lease will be for 15 to 20 years per San Francisco Business Times.
11. Columbus Community Hospital in Nebraska received a $12.6 million economic development grant to build a new $54 million sports complex by Columbus’ Telegram.