Unique Requirements in Medical Office Leases

Medical office leases present unique issues for landlords and tenants to address during lease negotiations. The specialized nature of all health care types (whether medical, dental, or any other specialty) requires careful consideration beyond what most standard lease forms provide.

For example, every health care or medical office lease should clearly address the issue of not just hazardous materials in general, but should also address the issue of medical waste specifically. Responsibility for the storage, handling, and removal of medical waste, if not clearly delineated, can lead to disagreements and unforeseen liability.

Similarly, the lease should also address how confidential patient information is handled, stored, and destroyed, or removed at the end of the lease term. For instance, what happens if a health care provider vacates the space and leaves behind files containing personal medical records? The lease needs to address this situation and others like it.

Issues can also stem from federal laws, particularly the Stark Law and Anti-Kickback Statute. The regulations are extremely complex but generally designed to prevent healthcare providers from making prohibited referrals in exchange for an unpermitted benefit. These laws include certain restrictions on office sharing and subleasing. As such, a well-intentioned real estate deal can run afoul of these laws with severe consequences if not considered in the drafting process of the medical office lease.

Would you like us to handle the complexities of your health care office lease? Reach out to us today.

Medical Office Lease Agreement
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