This article was written by Lisa Miller.
Hospitals and healthcare systems regularly lease office and warehouse space to accommodate their needs but are not aware of the potential cost savings hidden in their lease agreements. Your hospital can achieve significant real estate cost reductions with RX Realty – a dedicated, specialist service from VIE Healthcare Consulting.
In our experience, over 80% of hospital real estate leases contain overcharges that go unnoticed, which can lead to substantial losses for your hospital. It is a cost reduction area which is often overlooked.
Over 80% of hospital real estate leases contain overcharges that go unnoticed. Click To Tweet
Achieve cost savings in 60 days or less with RX Realty
If your hospital leases office or warehouse space, the chances are that it is losing money through overcharging.
That’s where VIE Healthcare can help.
We developed RX Realty specifically to help hospitals reclaim dollars lost to errors in real estate. With over three decades of combined expertise, RX Realty’s team of lease law and healthcare experts deliver immediate sources of income in 60 days or less.
The specialists in our RX Realty team:
- Identify and maximize savings that lie hidden within your hospital’s lease agreements.
- Employ unmatched resources to ensure every potential cost saving is identified and every dollar due is collected for your hospital.
- Gather and update information on your healthcare system’s current leasing agreements. Many hospitals do not track or update this information regularly.
- Carry out extensive audits of all your leasing agreements to ensure that all expenditure is accounted for.
- Help your hospital to understand what is leased, for how long and the impact that it’s having on your non-labor costs and purchased services spend.
- Enable your hospital to maintain focus on providing exceptional patient care while our specialist team focuses on identifying areas of overcharging and the significant cost savings hiding in your lease agreements.
With the help of RX Realty, hospitals can achieve as much as $5.88 per square foot in rental savings, and recoup as much as $276,000 through lease analysis.
By specializing in hospital real estate leases, RX Realty has become the leading expert in helping hospitals to dissect and understand the often complex and complicated lease language used in the healthcare sector.
The increasing need for a specialist team to examine your real estate costs
Historically, most healthcare organizations owned their office and warehouse space but as the sector has evolved, the trend has moved towards leasing and demand is on the rise.
With an aging population, the need for healthcare services and practitioners increases. It is estimated that just over 150,000 healthcare professionals will be added to the sector in the next two years, with the demand for medical office space reaching as high as 225.8 million square feet by the end of 2019. Demand for space is also predicted to exceed supply in locations including New York, Dallas-Fort Worth, Atlanta, Denver and Miami-Fort Lauderdale.
That growth in demand risks placing hospitals under more pressure to enter into lease agreements without fully understanding what they are committing to, or where potential overcharging exists in their lease agreements.
Furthermore, as demand for space increases, hospitals may also be forced to evaluate other real estate options. These may include the leasing of non-traditional spaces, for example repurposing retail space or conventional office buildings when suitable leasing arrangements are not available elsewhere.
Working with a dedicated team helps to ensure you are not being charged too much for your lease agreements.
Uncover, Recover, Return with RX Realty from VIE Healthcare
At VIE Healthcare, we operate on the principle of Uncover, Recover, Return.
- Uncover: We uncover the real estate overcharges and the hidden cost-saving opportunities in your lease agreements.
- Recover: We recover the dollars owed to your hospital or healthcare organization.
- Return: We return those real dollars back to your hospital to reduce your non-labor costs and improve your operating margins.
VIE Healthcare has a proven track record of reducing non-labor costs for healthcare systems by up to 60%. Our unique consulting process includes a hospital-wide evaluation to identify the hidden cost-saving opportunities in your purchased services spend from lease agreements to pharmacy spend and IT and telecommunications.
For a complimentary consultation, call our office today at 1-888-484-3332, Ext 500 or email us at [email protected].