Health System Strategy: Lease Versus Buy

What factors should be considered to choose the most appropriate form of occupancy? The “Lease versus Buy” decision can be sorted into two primary considerations, operational and financial.

Health systems in today’s operating environment face many challenges. With costs rapidly rising and margins becoming slimmer, systems must more frequently operate in an ambulatory setting to retain market share from competitors  This modern shift in healthcare, from mostly on-campus facilities to a mix of ambulatory and on-campus facilities, puts additional pressure on executives to manage the balance sheet effectively and get the most out of their capital.

One of the biggest questions health systems encounter when securing new facilities is whether it would be more advantageous to lease or own their real estate.