In our annual State of the U.S. Healthcare Market report, Savills Healthcare Practice Group and Savills Research explores trends shaping healthcare delivery and their impact on real estate strategy.
As detailed in this year’s report, the U.S. healthcare landscape is evolving rapidly, with implications for patients, providers, and the facilities that support them.
Key findings include:
- Federal legislation impacting reimbursements
Recent legislative acts aim to cut Medicare reimbursements through site-neutral payments and administrative cost reductions. These changes threaten hospital and outpatient provider revenues while seeking to curb federal healthcare spending. - Continued shift to outpatient services
Rising interest rates are driving up the cost of capital for new projects and retrofits/upgrades. This is leading many providers to delay or scale back investments in facilities and infrastructure. - Elevated capital costs persist through interest rates
Due to prolific M&A activity in the past decade, healthcare systems are carrying high debt loads and operating with tighter margins. This financial pressure is made more acute by elevated interest rates.
Public Law 119-21 Fallout