Do You Need to Update Your Lease?

It’s always a good idea to revisit legal documents regularly to make sure they are compliant with current laws.

The recent relaxation by the Centers for Medicare and Medicaid Services (“CMS”) in regards to the exclusive use requirement of the Stark Law impacting space and equipment leases may be reason enough to review your leases.

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Prior to the relaxation by CMS, lessees sharing space either had to use a timeshare lease or meet a narrow set of facts to qualify for the timeshare license exception.

Now, a lessee and any other lessees operating in the same office space or using the same equipment are able to use the office space or equipment simultaneously or during the same rental period, so long as the lessor is excluded from such use.

CMS still does not want a lessor to use the space while a lessee is making payments.

What does this mean for your practice?

If you lease space or are a lessor, you should take a look at your contracts and leases to reflect this change.

At Rickard & Associates, we help our clients stay current with ever-changing regulations and help to revise and renegotiate outdated contracts and leases.

It may also be a good time to review full-time space leases to confirm that the lessor and persons related to the lessor are excluded from the lease space.

If you have questions about the impact of regulatory changes on your agreements, contact us today.

It’s a good idea to have all contracts reviewed regularly by your attorney. This way you can ensure that you are compliant with all relevant laws and regulations.

We publish vital information on health law topics and news every Wednesday and Friday. To get this important information delivered directly to your mail box, 

Do you need help with updating your Business Associate Agreement or negotiating contracts with third-party vendors?  We can help. To contact us about your Business Associate Agreement, your vendor contracts or your other legal needs:  CLICK HERE.

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