Legislation Jeopardizes Healthcare Financing and Our Nation’s Hospitals

America’s hospitals in crisis.

Despite spending more on healthcare than any other developed nation, the U.S. ranks last in quality and access. Hospitals across the nation are stretched thin by rising costs, broken reimbursement policies, and worsening workforce shortages. More than 30% of rural hospitals are at risk for closure. Healthcare REITs own 8% of overall US healthcare real estate. In 2021, REITs owned 197 (3%) of all hospitals and 1,870 (12%) of all skilled nursing facilities. REITs have already kept hospitals nationwide from closing. Yet some lawmakers in Washington want to restrict free-market financing from the American healthcare system, claiming they are harmful to healthcare (see ‘Health Over Wealth Act’). While focused on improving patient care, these lawmakers are motivated from an incorrect understanding of REITs and how REITs work.

Without REITs, hospitals will have to look elsewhere for funding that is often shorter term, less stable, and more expensive.

The Impact:

• Fewer financing options = reduced competition.

• Many hospitals could lose essential funding and even face closure.

• Without clear solutions or realistic alternatives, underserved communities will lose care.