Converting existing real estate assets to cash through off-balance sheet financing

Hospitals are realizing that they can tap hidden equity tied up in their medical office buildings and other ancillary facilities and use the capital to grow their core health care business, retool patient rooms, purchase equipment, technology, and physician practices, or simply pay down debt. Through selling their ancillary real estate assets, they can generate much-needed capital liquidity, yet still retain the control they need through restrictive covenants on uses and tenancies, repurchase options, rights of first refusal, and master leasing with creative options to expand or contract.