As it is a known fact that health-care expenses are increasing continually, several healthcare systems and hospitals are looking for more ways to generate finances. Accountable care organization (ACOs), prospect of reduced reimbursements, electronic medical record systems, and other necessities generate the need for increased liquidity.
To adapt to all these new requirements, a greater number of healthcare organizations are making efforts to convert their non-core healthcare real estate assets into liquid capital, i.e. monetizing. Monetizing enables healthcare organizations to increase cash to the balance sheet and improve their credit ratings. Apart from helping with the increased expenses, monetizing aids healthcare organizations that are looking for additional capital to fund hospital mergers.
With the increasing medical expenses, monetizing non-core healthcare real estate assets proves greatly beneficial to several healthcare organizations. Here are some prominent benefits of monetizing healthcare real estate.
Prevents exposure to Medicare fraud and abuse and Stark Law
Monetizing healthcare real estate eliminates the healthcare organization’s legal exposure to Medicare fraud and abuse and Stark Laws. These laws and regulations are a concern when the hospital serves as the landlord to the physician tenants. Third-person ownership limits the hospital’s exposure to various complicated regulatory and legal issues.
Prevents landlord-tenant issues
Monetizing healthcare real estate helps the medical organizations to move away from the landlord position. It keeps them away from political conflicts that can arise when managing medical office building and physician tenants.
Benefits from the high demand of healthcare real estate
Private and public Real Estate Investment Trusts (REITs), private equity groups, and other organizations are always actively seeking healthcare property assets to add to their portfolio. This high demand of healthcare real estate met with a limited number of available opportunities results in high sale prices. Monetizing your healthcare real estate with the help of an efficient real estate valuation service can help you make good profits. It can also help you obtain additional capital to fund hospital merger.
Focus more on core health-care business
Monetizing the non-core healthcare real estate assets allows healthcare organizations to focus more on their management and financial resources and enhance their core health-care business. It helps you have an increased capital for clinical management and expansion. A proficient appraisal service, such as business valuation service in New York, can help you know a fair and accurate market value of your healthcare real estate and carry out the monetization process safely and without any complications.
These are the four main benefits of monetizing a healthcare real estate. However, the most difficult part is in trusting a third-party investor to continue serving the needs that retain the outpatient physician tenants. Choosing the right buyer and negotiating the best deal for the healthcare real estate transaction with the help of a proficient real estate appraisal service can help you eliminate this concern.