Medical Office Space – Lease’s Versus Contracts

The most important piece of a medical office is its Space Policy. Space planning and contract management form the core of a medical office’s operations. Contracts, including lease provisions for office equipment, supplies, and staff, are reviewed and signed by all parties involved in a medical office transaction. Properly planned out, these contracts optimize the use of office space while reducing costs. Negotiations between office managers and suppliers can result in discounts on equipment and supplies, and lower office rent or mortgage payments.

Medical Office SOP

When a medical office adopts an appropriate Space Policy, it makes sense to maximize the available space. First, the policy should specify the number of people that can comfortably occupy the space. Second, the policy should establish maximum square footage, which ensures that the building meets the needs of the staff. Finally, the policy should define the duration of the contract, which establishes the maximum amount of money that can be spent on office expenses, such as office rent, supplies, and furniture.

An office space leasing agreement provides a method for a company to measure its assets and liabilities. The contract specifies how much money is spent on supplies and what monthly payments are required. Calculating these values allows the company to make smart spending decisions and plan for any financial emergency. Instead of paying for a lot of office rent in one lump sum, for example, the company can divide up the cost of the supplies over the course of a year, paying monthly bills for each increment in square footage.

A contract for office space can also protect an office from unexpected events, such as those that may threaten the sale of office property. In the event that the medical provider defaults on a lease, for example, a defaulting landlord may seize the building in which the office is located. The seizure would take precedence over any other agreement between the parties to the contract. It would be difficult for the landlord to find another willing tenant.

In addition to the economic benefits of a lease, a medical office can benefit from the protection it offers against liability. As any lawyer will tell you, medical professionals often act in ways they would not otherwise consider. Lawsuits can be very expensive, and when there is damage to a person’s livelihood or property, the result can be very devastating. A good contract will help to protect an office against these potential lawsuits. Some leases even have provisions for malpractice and professional liability.

Another benefit of a lease is that the terms of the contract can be changed if both parties decide that a change in circumstances is necessary. This is referred to as a termination clause. In other words, if you become ill and cannot work in the office anymore, you can terminate your lease. You may need to pay a penalty for this termination, however. In some cases, the doctor or hospital will petition the court to have your contract termination lifted so that you can pursue treatment at another facility. This is referred to as a “non-Termination Agreement.”

Medical offices also stand to benefit from good leases. They are less likely to be sued because they don’t commit to having a specific number of patients. They can choose their patient ratio based on available funding and capacity. They can also choose their location, which means they won’t have to make final decisions about leasing in an area that doesn’t meet all their needs. Good lease terms can also include a provision that protects the tenant from liability for damages to real property or injury to patients in the office.

While it can be difficult to find the right medical office space for lease, it is worth the effort. The more research you do into a potential lease, the better your chances of getting a great deal. Medical leases aren’t always the best way to go, but they do offer a lot of flexibility and freedom. It never hurts to spend a bit of time looking into the options. Once you have learned all you can about the process, you can make better choices for finding a new medical office space.