20 Dec 2017

Important Considerations in Understanding Fair Market Value Opinions for Timeshare Arrangements

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Important Considerations in Understanding Fair Market Value Opinions for Timeshare Arrangements
Written by: Brittany Martin


Medical office timeshares (MOTs) refer to part-time medical office space lease arrangements between a licensor/landlord and a licensee/tenant (“Licensor” and “Licensee”). MOTs have become more prevalent as this type of arrangement between hospitals and physicians provides a cost-effective way for medical providers to serve surrounding markets and improve staff productivity. In the Proposed Policy, Payment, and Quality Provisions Changes to the Medicare Physician Fee Schedule for Calendar Year 2016, the Centers for Medicare & Medicaid Services (CMS) established a new exception under the Stark Law (411.357(y)) to permit timeshare arrangements for the use of office space, equipment, personnel items, supplies, and other services.1

In its most basic form, a MOT is generally structured as a combined lease of some or all of the following:

  • Medical office space
  • Medical and office equipment
  • Clinical and non-clinical staff
  • Medical and office supplies
  • Other items and services2

MOTs typically utilize partial space, are part-time in nature and are frequently structured as leases of specified blocks of time.

Click here to continue to the full article on medical office timeshare arrangements.

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