REAL Health Care
REAL provides valuation and consultancy services to the health care industry, with particular emphasis on medical office buildings, both on and off campus.
REAL has undertaken Stark Law compliance rental studies for several of the major health care providers in St. Louis, Kansas City, and a major operator in Louisiana over the last decade. We have an intimate knowledge of and a substantial database in respect to, the medical office rental market. This includes the very popular timeshare.
Medical Office Buildings and The Stark Law
The Stark Law (named for United States Congressman Pete Stark (D-CA) who sponsored the initial bill) originally banned self-referrals for laboratory services working within Medicare, and was later expanded to prohibit healthcare providers from submitting Medicare and Medicaid claims for patients who were referred by doctors with whom providers have a financial relationship. It also applies to property leases between healthcare providers and referring offices. Under the Stark Law, such leases must include a term of at least one year, “reasonable and necessary” space for legitimate business purposes, and rent consistent with fair market value, among other requirements.
A timeshare is a lease arrangement whereby medical practitioners rent medical office space on a part-time basis, typically in four-hour time blocks. The space leased is typical medical office space and the physician leases one or more exam rooms and has the right to use the common facilities such as patient waiting rooms, restrooms, physician’s office, nurses’ station and lab space. The space may or not be equipped with medical equipment (depending upon the specialty), but the exam rooms are typically equipped with general supplies and equipment (cotton swabs, gloves, tongue depressors, blood pressure cuffs etc.). Sometimes timeshare spaces are staffed, with a receptionist, nurse/s, and office personnel.
In addition to providing Stark Law compliance rent studies, REAL undertakes valuations of medical office buildings for financing (new construction and re-financing), acquisition and disposition.
Whether it is a medical facility or a commercial property portfolio, REAL brings the credentials, processes, and an exceptionally high level of service and expertise to our clients.
To talk with one of our professional real estate analysts, contact firstname.lastname@example.org, or call 314.965.1171 today.