OIG Advisory Opinion Addresses Hospital Lease Arrangements; Construction Costs Stabilize

The HHS Office of Inspector General has issued a new advisory opinion on hospital lease arrangements, providing compliance guidance for healthcare real estate transactions. Separately, healthcare construction costs have leveled out after years of increases, potentially affecting facility expansion plans. These developments come as regional healthcare real estate markets show divergent growth patterns, with the Southeast and West Coast outperforming the Midwest and Northeast. For Medicaid managed care organizations with capital investments or provider network expansion plans, the OIG guidance clarifies Anti-Kickback Statute considerations in lease negotiations, while stabilizing construction costs may create opportunities for facility development.

Managed Care