Five Benefits of Lease Administration Software in Healthcare
Elevate lease management to a higher level. Explore benefits that lease administration software offers, like the ability to manage complex timeshare ...
Solutions
Solutions
Workplace Management Solutions
Real Estate Management Solutions
Maintenance Management Solutions
Energy Management Solutions
Engineering Document Management Solutions
Asset Management Solutions
Automate campus scheduling for classes, meetings, and exams with our EMS software.
Plan and manage conferences effortlessly with EMS software to impress guests and streamline operations.
Boost workplace flexibility and maximize space use with seamless desk and room booking.
Organize workplace or campus events smoothly, creating memorable experiences.
Optimize workspace, manage allocations efficiently, and reduce costs with our space management solutions.
Deliver projects on time and within budget by improving communication, collaboration, and efficiency with our software.
Streamline lease accounting for ASC 842, IFRS, and GASB compliance.
Manage leases efficiently by tracking key dates, analyzing costs, and ensuring compliance.
Centralize data and analytics for better insights, faster negotiations, and revenue growth.
Centralize facility and asset maintenance, automate work orders, and ensure compliance with our CMMS software.
Extend asset life, reduce downtime, and prevent costly repairs with data-driven monitoring.
Prevent equipment failures and extend asset life by detecting and addressing issues early.
Make sustainable, cost-efficient energy decisions by monitoring and optimizing power consumption.
Remotely monitor and control equipment with real-time data to predict issues, boost efficiency, and reduce downtime.
Easily share and collaborate on documents, creating a single source of truth for engineers and contractors.
Manage and analyze assets across their lifecycle to schedule maintenance, reduce downtime, and extend lifespan.
Improve visibility, automate work orders, and ensure compliance for efficient facility and asset management.
Resources
Browse our full library of resources all in one place, including webinars, whitepapers, podcast episodes, and more.
Support
Looking for access to technical support, best practices, helpful videos, or training tools? You’ve come to the right place.
About Accruent
Get the latest information on Accruent, our solutions, events, and the company at large.
Discover 10 things to know about leasing under Stark Law and how it presents unique challenges that must be addressed to avoid hefty fines or penalties.
Table of contents
For lease and property managers of medical office buildings, managing your leases goes beyond collecting rent and ensuring that you have a comprehensive view of your portfolio.
Compliance requirements and regulations, such as FASB and Stark Law, present unique challenges that must be addressed so that the organization does not face hefty fines or penalties.
The Financial Accounting Standards Board (FASB) was established in 1973 to “establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports.”
There are a number of standards that have been established that must be adhered to by nongovernmental companies and organizations. In 2015, FASB announced that they are proceeding with a new accounting standard that requires these organizations to include lease obligations on their balance sheets.
As a result of these changes, many companies will have to change the way that they manage their leases. Investing in a lease administration solution can simplify the process to adhere to key requirements set forth by FASB.
Stark Law covers three separate provisions that govern physical self-referral for Medicare and Medicaid patients. A component of this includes the regulation of how health service office space is leased out to doctors.
As part of a lease Stark Law, there are specific requirements that must be met for a lease arrangement to adhere to Stark Law.
Hospitals and healthcare providers that have not complied with Stark Law have faced multi-million dollar fines. To ensure you comply, you can leverage a lease administration solution designed to meet the unique challenges that Stark Law presents to hospitals and healthcare organizations.
Minimizing the risk that comes with being out of compliance can be a tall order. Here are 10 key facts to know about leases under the Stark Law:
This occurs when a physician refers a patient to a medical practice or facility where the physician has a financial relationship in some way, whether it be an investment or compensation arrangement. It can refer to cash or something like leased space that is offered to benefit the physician financially.
Every lease agreement needs to be in writing and signed by all parties, including both lessee and lessor.
A lease agreement must describe all spaces and should include the main leased space, as well as any other areas that may be used. In one recent settlement, a hospital landlord allowed a physician tenant to use a closet with no rent charged for nearly 30 years.
The lease must include remuneration for common areas and associated maintenance. This should be allocated proportionally to all tenants who are leasing within the building.
In addition to space, the lease should include services and equipment. These elements should be charged at fair market value, as should space.
A clear indication of termination rights needs to be included within the lease. If the tenant, for instance, goes out of business, how will the terms to the lease agreement be met? Is a tenant able to sign a waiver? These questions must be answered.
Every timeshare arrangement must adhere to Phase IV of the Stark Law, where the CMS no longer allowed “on-demand” leasing arrangement. A visiting physician, for instance, must have a fixed schedule of blocked times that are no less than four hours.
The self-referral disclosure protocol (SRDP) allows suppliers and service providers to self-disclose any potential or actual violations of the Stark Law. As a result, the offending organization can resolve the violation and avoid the risk of prosecution to the fullest extent of the law.
The Stark Law can result in hefty fines and even prison time. The SRDP helps healthcare landlords minimize the penalties.
For example, the first hospital that followed the SRDP was charged $579,000 to resolve its violations, instead of the estimated $14 million that would have been charged under full prosecution.
The Stark Law is currently under review. In July, the CMS issued a notice of proposed changes to the Stark Law, as well as to solicit comments about whether Stark Law serves as a barrier to healthcare reform. Comments will be accepted through September 8.
Key Resources:
To prevent Stark Law fines, healthcare lessors need strict adherence to every requirement outlined in the regulation, in addition to other regulations they may be subject to. To meet all the requirements, leveraging a healthcare lease administration and accounting solution can streamline the lease management process.
As a result, you can access all data related to your leases in one central location, ensuring that you have the data in front of you to stay current with rent and provide support in future lease negotiations.
Contact our expert staff to learn more about how you can manage these challenges.
Elevate lease management to a higher level. Explore benefits that lease administration software offers, like the ability to manage complex timeshare ...
If you're managing leases in healthcare, you're likely familiar with Stark Law. But are you aware of 10 key facts? Get the details about the ...
Learn the basics of healthcare regulatory compliance and the software that can best support it, including key features and benefits.
Subscribe to stay up to date with our latest news, resources and best practices