No-Cost Ownership Participation for Hospitals, Health Systems and Staff Physicians

Landmark developed a no-cost ownership program for hospitals, health systems and academic medical centers that would like to participate in the ownership of their new outpatient buildings, but are not prepared to assume the risks and financial obligations that are associated with 100 percent ownership.

Client hospitals and health systems and staff physicians are not required to provide front-end risk capital, invest equity or incur or guarantee debt in order to receive their no-cost ownership interests.

Under the unique no-cost ownership program of Landmark, healthcare providers that become clients and staff physicians who lease office space in the outpatient buildings of Landmark receive no-cost ownership interests in their new buildings.

With the no-cost ownership program of Landmark, healthcare providers that become clients and staff physicians who become tenants receive a significant portion of the cash flow from the operation of their new outpatient buildings and a significant portion of the net proceeds that are realized from future refinancings or an eventual sale.

Healthcare providers that become clients and staff physicians who become tenants also receive a significant portion of the tax deductions that result from real estate depreciation.  [ Some nonprofit healthcare providers elect to hold their portion of the no-cost ownership interest in one of their taxable entities in order to benefit from the tax deductions. ] 

Healthcare providers that become clients and staff physicians who become tenants are not required to invest equity or incur or guarantee debt on order to receive their no-cost ownership interests.

As the full-service developer, Landmark provides 100 percent of the equity that is required, obtains and guarantees the construction and permanent loans and assumes all the risks that are associated with development and construction.

Healthcare providers and staff physicians who participate in the no-cost ownership program of Landmark are not subject to the cash calls that might result from design busts and construction cost overruns or the cash calls that might result from the operating losses that might occur during the lease up period.

We are pleased that the status of Landmark as a family-owned and family-controlled private company enables Landmark to share the financial benefits that result from the ownership of outpatient buildings with healthcare providers that become clients and staff physicians who become tenants.

©2017 Landmark Healthcare Facilities LLC