The Role of Fair Market Value in Healthcare Real Estate Deals

Fair market value isn’t just a phrase tossed around in reports—it’s the backbone of sound decision-making in healthcare real estate. Whether you’re an operator, investor, or lender, getting an accurate FMV is essential for compliance, leasing negotiations, and understanding risk.

In the healthcare world, there’s often more at stake than just dollars and square footage. Regulations like Stark Law and anti-kickback statutes require that lease rates and purchase prices be consistent with FMV. That means having an independent, well-supported valuation isn’t just smart—it’s legally necessary.

This is especially important in behavioral health and senior living, where properties often include business components and unique use-cases. You’re not just valuing a building—you’re valuing a highly specialized operation with specific licensing, tenant improvements, and revenue streams.

An inflated value can lead to compliance issues. An undervalued asset? Missed opportunities. Either way, the risks are real. That’s why having a third-party appraiser who understands the nuances of healthcare real estate can make all the difference.

If you’re evaluating a lease, acquisition, or just want to make sure your current portfolio is properly positioned—fair market value is your first checkpoint.

📅 Book a call if you’re looking to get a clear, compliant, and market-based valuation.

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