Editor’s Letter: End of off-balance sheet?


By John B. Mugford

Dear Reader:

Healthcare reform has grabbed most of the headlines, but another issue concerns many industry professionals: a proposed accounting rule change that would make it more difficult for hospitals to treat third-party owned, on-campus medical office buildings (MOBs) as off-balance sheet assets.

The change would require all public and private companies – including healthcare providers – to capitalize on their balance sheets all leases of real estate and equipment. The proposal is still being studied, but many believe that it will eventually be adopted. If so, the new accounting standard could take effect as soon as 2012, according Jones Lang LaSalle, which is monitoring the matter.

The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE

Existing Users Log In

Comments are closed, but trackbacks and pingbacks are open.