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Medical Office Leases: Navigating Stark Law, Anti-Kickback Statute, Operational Restrictions, and More

Drafting to Address Reciprocal Easements, Ground Leases, HIPAA, ADA, and Environmental Issues Unique to Medical Office Use

Recording of a 90-minute premium CLE video webinar with Q&A

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Conducted on Wednesday, September 13, 2023

Recorded event now available

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This CLE course will prepare real estate counsel to draft medical office leases that address regulatory and operational restrictions associated with medical office space. The panel will discuss how to develop agreements that qualify for an exemption under the federal Stark Law and a safe harbor under the federal Anti-Kickback Statute, how hospital affiliations and environmental concerns may impact lease provisions, and more.

Description

Medical office leases differ from standard commercial leases in several respects. There may be development and title issues unique to a medical office building (MOB) because it may be located within a hospital campus and may be subject to medical use restrictions and easements that impact its operation.

The hospital owner often desires to retain fee ownership of an entire medical campus, so the MOB might also be subject to a ground lease. Counsel for the landlord or the tenant will want to see these matters addressed in the agreement.

There are also federal regulations to consider in drafting medical office leases. Medical office leases may be subject to the Stark Law or the Anti-Kickback Statute, which applies to referrals for services payable under federal healthcare programs.

Leases require specified criteria to comply with federal Stark and Anti-Kickback regulations and qualify for an exception and/or safe harbor. MOB leases should also address the obligations of the landlord and the tenant about HIPAA, ADA, and environmental compliance.

Listen as our authoritative panel discusses the development and regulatory issues associated with medical office leases. The panel will review the operational constraints often presented by restrictive covenants, easements, and ground leases impacting MOBs, the best leasing practices for achieving compliance with the Stark Law and the Anti-Kickback Statute, and compliance with HIPAA, ADA, and environmental regulations particular to medical offices.

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Outline

  1. Development and title matters to address in medical office leases
    1. Reciprocal easements and operational covenants relating to an affiliated hospital
    2. Ground lease of MOB
  2. The Stark Law and the Anti-Kickback Statute
    1. Potential liability for landlords and tenants
    2. Exemptions from the statutes: drafting considerations
  3. Environmental issues particular to medical offices: hazardous waste disposal
  4. HIPAA
  5. ADA and other considerations

Benefits

The panel will review these and other key issues:

  • Is there an affiliate relationship between the MOB and an existing hospital that will impact the landlord's obligations or the tenant under a medical office lease?
  • What are the kinds of restrictions or easements to address in the lease?
  • What are the leasing criteria to comply with Stark Law and the Anti-Kickback Statute?
  • How should HIPAA be addressed in a medical office lease?
  • What are the other provisions particular to a medical office lease?

Faculty

Owens, Miranda
Miranda L. Owens

Attorney
Baker & Hostetler

Ms. Owens assists clients with a variety of commercial transactions, including acquisitions, dispositions, leasing,...  |  Read More

Rather, Rahil
Rahil Rather

Attorney
Baker & Hostetler

Mr. Rather has a broad-based real estate practice that includes commercial development, leasing and finance,...  |  Read More

Ruark, Kimberly
Kimberly S. Ruark

Counsel
Baker & Hostetler

Ms. Ruark focuses her practice on transactions and regulatory matters for the healthcare industry. She is scrupulous in...  |  Read More

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