Corporate Services Case Study
HCA Healthcare Corporation is one of the leading health care service companies in
the United States. The Company operates 173 hospitals and 108 outpatient surgery
centers, including seven hospitals and eight freestanding surgery centers operated
by equity method joint ventures. The Company’s facilities are located in 20
states, England and Switzerland. HCA employs approximately 180,000 people.
HCA engaged Lincoln Harris CSG in 1998 to provide full-scope facility management
services for HCA’s north Florida medical office building portfolio. The services
included Transaction Management. Today the full-service relationship has expanded
to encompass a 13 state / 104 hospital portfolio of non-acute care facilities.
Lincoln Harris CSG’s responsibilities include:
HCA – TRANSACTION MANAGEMENT CASE STUDY
- All third party leasing and marketing within a 6.5 million SF portfolio
- On-going implementation of a lease audit/compliance program within the context of
Safe Harbor and Stark II legislation
- Revenue enhancement through optimization of third party rents
- Development and implementation of web-based lease administration initiative for
all leases with HCA as tenant (a 4.6 million SF portfolio)
- Strategic portfolio analysis for HCA’s critical leased portfolios
- Strategic tenant representation for HCA’s critical leased portfolios
- Client relationship management
Lincoln Harris CSG has created a healthcare management division that is solely focused
on the healthcare industry and its highly specialized facility needs. A dedicated
Transaction Team manages transactions for the HCA account. The team, which is located
in 4 regional offices, is comprised of 7 transaction managers and 5 property administrators.
The transaction team works with property managers and the compliance group (5 dedicated
associates) to handle leasing and compliance issues at the property level.
- Lincoln Harris CSG has completed 4000+ third party leases for HCA in the past 5
- The 1st fiscal year of the contract resulted in $6 million in revenue enhancement,
of which 30% was attributable to 3rd party leasing.
- In conjunction with lease procurement, the Lincoln Compliance team has provided
certifications that have satisfied compliance audits for each hospital in the portfolio.
- 3rd party occupancy increased by 12% since 1998.
- The 2002 Strategic Portfolio Analysis completed in 2002 resulted in a strategic
plan for 34 critical master leased facilities that was initiated in Q3’02.
The first of this series of recast transactions resulted in a 9% reduction in rent
- Lincoln Harris CSG is completing the migration of the entire portfolio of HCA landlord
leases (4.6 million SF) from hard file format to a web-based lease administration
system. The system provides easy access via the Internet to lease abstracts that
are linked and indexed to digitized lease documents. The system also provides property/portfolio
level reporting and proactive critical date management.