What are some of the issues I should be aware of when negotiating a healthcare lease?
Healthcare leasing is specialized and presents unique concerns, which most standard leases do not adequately address.
For example, it’s essential to specify responsibility for the storage, handling, and removal of hazardous materials and medical waste to avoid disagreements and potential liability.
The lease should also address how the patient information and prescriptions are stored and handled. Landlords typically want to have broad access rights, but that has to be balanced with a healthcare provider’s obligations regarding patient information confidentially and laws about the handling of prescription medication.
There are also several federal laws pertaining to healthcare providers that may have an impact on your lease agreement, particularly the Stark Law and Anti-Kickback Statute, which can be implicated when office sharing or subleasing. If these laws are not considered in the drafting process, the consequences can be severe.
Being aware of the unique concerns raised in health care leasing is the first step in negotiating a well-drafted health care lease.
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