1. Mayo Clinic unveiled a $5B plan to redesign its Rochester, Minnesota campus. The plan includes creating “health neighborhoods” within the campus that will focus on certain patient needs.
  2. CommonSpirit Health has closed on a $5M impact investment to support an affordable housing community in San Francisco called Freedom West Homes.
  3. Becker’s published a summary of how health system executives plan to cut expenses in 2024. Common themes include: 1. Reduce real estate expenses through portfolio optimization, 2. Reduce workforce costs by eliminating turnover and the use of staffing agencies, 3. Supply chain optimization, 4. Renegotiate vendor agreements to reduce costs, and 5. Implement technology to create efficiencies.
  4. CBRE released its Q3 Health Care Real Estate Investor Update. MOB sales are down 5.6% from Q2. Average MOB cap rates decreased from 7.1% to 6.9%. Average MOB sale prices are up 19.3%.
  5. Hall Render recently hosted its annual Health Care Real Estate Executive Summit. John Marshall published a list of key takeaways from the Summit that can be found here.
  6. Optum now has 90,000 physicians and 40,000 clinicians who are either affiliated with or employed by the organization. Optum is the largest employer of physicians in the U.S.
  7. HealthPartners is moving forward with plans to build a $400M hospital in Stillwater, Minnesota.
  8. Kaiser Permanente has acquired a 507,237 sf MOB in Washington, D.C. for $198M.
  9. A recent KFF survey found that 66% of Americans aged 50 or older express anxiety about the cost of assisted living or nursing home care.
  10. India is experiencing a surge in demand for senior housing driven by an aging population. The senior housing market is expected to grow from $15B to $50B by the end of the decade.