Big Beautiful Bill may boost demand for outpatient facilities and ambulatory surgical centers

The recently enacted “Big Beautiful Bill” is likely to increase demand for medical outpatient buildings (MOBs) and ambulatory surgical centers (ASCs), according to analysis by CBRE.

The massive spending bill reduces inpatient-only restrictions for medical treatment and procedures, allowing more patients to be treated in lower-cost, non-hospital settings. Hospitals and healthcare systems may prioritize consolidation, asset monetization, and sale-leasebacks to achieve cost savings and better space utilization to make up for lost revenue due to government cutbacks. 

The bill is forecasted to prompt more than $1 trillion in spending reductions in government insurance programs including Medicaid. Rural hospitals and community health centers may be disproportionately impacted by the bill’s spending cuts, CBRE says.

Outcomes of the bill may vary from expectations based on how states react. Some states may raise their own spending to make up for lost federal funds, reducing the number of people who become uninsured.