November 14, 2022
  • Health systems are examining their options to divest or squeeze more value out of their real estate holdings as they continue to face a post-pandemic economic crunch. Inflation is still driving up the costs of most goods and services and the surge in telehealth is softening demand for medical office space, especially in lower-acuity settings like emergency care centers. Some health systems are looking to get creative, such as renegotiating deals with landlords for less square footage over a longer lease period or repurposing underused clinical space for more productive uses, while others – like South Dakota-based Sanford Health and Roanoke-based Carilion Health – have either called off or postponed construction projects. (Article here)