Sharing your space: Things to consider when looking for an office mate

Alice Fuisz, MD, an internist in Washington, D.C., has space for rent. One physician recently left the Washington Internists Group, where she is a managing partner. With the economy tight, getting someone to sublease part of the group's 5,000- square-foot office for a few hours or days each week may be the quickest way to keep a cap on expenses until a new member is on board.

"It helps to cover the costs," said Dr. Fuisz. "Subleasing has many benefits to our practice."

Physicians sharing space with physicians or other health care professionals is not a new concept. But those in the medical office real estate business say interest in subleasing is growing. The transition to electronic medical records is leaving empty rooms where paper charts were once stored. Also, declining reimbursements and recessionary pressures are leading physicians to seek ways to reduce fixed costs.

"I've seen more physicians looking to keep their overhead down and looking to sublet their space out or looking to sublet space from other physicians," said Paul Wexler, president of Corcoran Wexler Healthcare Properties in New York. "It makes a lot of sense for people on both sides of the transaction."

This means physicians increasingly are taking in the professional equivalent of a roommate. And like with a roommate, the best match will be someone whose activities mesh with your own.

"You want someone who will be complementary to the practice," said Tim Rorick, senior managing director of FirstService Williams Commercial Real Estate in Stamford, Conn. "An orthopedic surgeon could rent space to a physical therapist, but you don't want a pain-management physician right next to a pediatrician."

There is potential for conflict when the renter serves a patient population that has different needs and behaves in different ways. But when that population meshes with your own, the arrangement can not only provide a financial boost to the practice, but also can make it easier for patients to access recommended care. For instance, Dr. Fuisz rents space to a podiatrist and a cardiologist, and offers her patients the option of being referred to these physicians. "It's really very convenient for patients," she said.

Such arrangements should not run afoul of various state and federal anti-kickback statutes as long as the rent paid is comparable to that for similar spaces in the area, and there is a written, signed lease lasting at least a year, experts said.

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