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The Stark Law is a federal law that prohibits physicians from referring patients for certain designated health services to entities with which they have a financial relationship, unless certain exceptions are met. The law is intended to prevent conflicts of interest and to ensure that medical decisions are made based on the best interests of the patient, rather than financial gain.

While the Stark Law primarily affects healthcare providers, it can also have implications for lease administration. Specifically, it can impact leases between healthcare providers and landlords, as these leases may be considered financial relationships under the law.

Real Estate Leases and Stark Law Compliance

To comply with the Stark Law, healthcare providers must ensure that any leases with landlords meet certain requirements. For example, the lease must be in writing, signed by both parties, and specify the space being leased and the duration of the lease.

In addition, the lease must meet fair market value and commercial reasonableness standards. This means that the rent paid under the lease must be consistent with what other tenants would pay for similar space in the same location, and that the lease must make sense from a business perspective.

Lease Administration Providers and Stark Law Compliance

Lease administration providers can play an important role in helping healthcare providers comply with the Stark Law. For example, they can help ensure that leases meet fair market value and commercial reasonableness standards by conducting market analyses and providing guidance on lease terms.

In addition, lease administration providers can help healthcare providers ensure that leases are properly documented and that all necessary requirements are met. This can include providing templates for lease agreements, monitoring lease terms and expiration dates, and providing support for lease negotiations and renewals.


Compliance with the Stark Law is critical for healthcare providers and landlords, as violations can result in significant penalties and legal issues. Lease administration providers can help healthcare providers ensure that their leases meet the requirements of the law, and that they are properly documented and managed.

By working with a lease administration provider, healthcare providers can ensure that their leases are in compliance with the Stark Law, while also benefiting from the expertise and support of lease administration professionals. This can help healthcare providers focus on providing quality care to their patients, rather than worrying about the complexities of lease administration and regulatory compliance.

National Lease Advisors is a leader in the lease administration sector of the commercial real estate industry. The firm focuses on clients with multiple locations both regionally and globally and helps them manage their lease contracts, and provides lease accounting, transaction management, and audit services.