Manatt Partner Interviewed on Healthcare Real Estate Deals
“Health Deals Get a Booster Shot”Daily Journal
February 22, 2012 – The Daily Journal interviewed Manatt’s Adam R. Salis, a partner in the firm’s Real Estate & Land Use Practice Group, on the current challenges associated with preparing a commercial real estate lease for healthcare clients.
As reported by the Daily Journal, healthcare real estate leasing is becoming more complex because of new and tighter medical regulations and licensing issues in structuring leases and sales. The publication reports that real estate lawyers have noticed medical-related transactions picking up over the past several months after a drop over a few years. Legal observers attributed the drop to the passage of President Obama’s Patient Protection and Affordable Care Act. Medical industry mergers and acquisitions – and resulting real estate deals – slowed because hospital officials were unsure of the law’s terms and impacts.
As healthcare development begins to pick up, real estate attorneys are recognizing the challenges associated with the new regulations. The increase in industry mergers and acquisitions and rising outsourcing of certain hospital care functions in the down economy are pushing real estate attorneys into new types of legal work.
“I think to some extent this trend is driven by the fact that there’s been an increase in the amount of regulations,” said Salis. “You’re almost like a quarterback – you’ve got to pull in your healthcare guy and your tax guy and [consult with someone] about labor and employment issues. You have to become well-versed in these areas before looking at the lease.”
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