Medical office rents are heavily regulated by the Stark Law, which prohibits health service providers from submitting claims to Medicare/Medicaid for services rendered to a patient referred by a physician who has a financial relationship with the service provider, unless the financial relationship falls within an exemption. Stark Law lease exceptions must comply with all the following requirements: written agreement; signed by both parties, which specifies the premises covered, term of at least one year, and space is reasonable and necessary of the legitimate business purpose and may include proportional allocation of common area expenses. Rent must be set in advance and be consistent with fair market value. The rent cannot be determined in a manner that considers the volume or value of referrals and the lease agreement must be commercially reasonable without the existence of referrals. To aide Healthcare Systems remain compliant with Stark Law regulations, we provide Fair Market Value of Rent Studies, Session Rent Studies, as well as other Consulting Services.
