Traditional Timeshare Valuation

healthcare value
with clarity.

The traditional medical office timeshare is commonly set up by a hospital system utilizing a small medical suite located within the adjacent medical office building. The suite will typically consist of three exam rooms, a waiting room, check-in desk, physician office, nurse station, etc. The hospital will purchase the furniture and equipment for each room and provide other services. Some timeshare suites will have a front desk receptionist or clinical nurse available.  Similar to executive office timeshares, medical office timeshares allow physician tenants to rent space on a part-time basis (typically in four-hour time slots). The medical office space is controlled by independent physician practices or hospitals and can be tailored to meet the needs of specialists or generalists. By leasing space based on total time used, the healthcare provider is able to assess a new market and expand their patient base without the high overhead and start-up costs of a full-time office.

HMS has worked with hundreds of hospital systems over the last 20+ years in not only providing fair market rental rates, but we also provide consultation to our clients in helping discuss the set-up of the suite, considerations for assets and services, and how to remain Stark compliant by avoiding certain pitfalls.

Medical office timeshare agreements have become more popular between hospitals and physicians. To ensure the arrangement is Stark compliant, each component must be considered, including accurate space utilization and rental rate (exclusive-use and shared), furniture and equipment, services and the appropriate short-term premium given the specific facts and circumstances of each arrangement. With well-documented support to ensure the timeshare rate is FMV, a medical office timeshare can be a great option to reach a larger patient base or providing added convenience and improved access to care to an active patient base, while minimizing overhead costs.


Mike Vetter

Partner—CVA, ASA

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