Keeping Leases on the Level

By Steve Barrett
Monday, January 1, 2018

Healthcare organizations considering leasing space to providers who may refer patients to those organizations should keep one eye on the Anti-kickback Statute, which forbids certain practices that may spur referrals.

Here are just a few of the provisions, as spelled out by global law firm Holland & Knight:

  • All premises that will be covered for the term of the lease must be spelled out explicitly.
  • If a lease is only for certain time intervals within the overall term, the schedule of those intervals, their duration and the rent for the intervals must be defined exactly.
  • The aggregate rental charge has to be determined in advance, “consistent with fair market value in arms-length transactions.”
  • Rental charges may not take into account the value or volume of referrals that may be fully or partially covered by federal programs such as Medicare or Medicaid.