The legal perspective: leasing office space to physicians

The leasing of space in medical office buildings should be undertaken only after a careful study of the tax, certification-of-need, and reimbursement consequences. Under some circumstances, income from the leasing of space is taxable, and the goal of achieving favorable tax consequences may conflict with the goal of achieving favorable CON and reimbursement results. The question of obtaining public charity status for a freestanding medical office building also should be addressed.