5 lease management challenges affecting the healthcare industry
The healthcare industry is no stranger to complexity, especially when it comes to managing leases and equipment. As such, healthcare lease managers, especially those overseeing extensive portfolios of leased properties, face the challenging task of delivering cost-efficient, consistent, and compliant services in a dynamic and demanding environment.
In the following article, we explore some key insights from our recent eBook, “Overcoming lease management hurdles in the healthcare sector,“ taking a particular look at some of the unique leasing challenges faced by the Australian healthcare industry and the role technology can play in driving efficiency and reducing manual workload.
Some of the unique lease management issues faced by the sector include:
1. Complex and critical services
Unlike standard office spaces, healthcare facilities must conform to strict design and fit-out standards. Factors like temperature and radiation-controlled environments or secure areas for patient privacy often require significant modifications, especially in buildings not originally designed for healthcare purposes. As a result, the selection of leased properties and the structure of leases may require unique terms, conditions, and clauses.
2. Geographic and operational diversity
Managing an expanding portfolio of leased properties can be daunting for operators
unprepared for the dynamic healthcare services market, where rapid growth through mergers and acquisitions is common. Skilful property and lease management is required to accommodate this growth without incurring significant cost overruns or disruptions. In most cases, effective management demands for a solution that can accommodate various types of leases and contract agreements, like MRI LeaseEagle.
3. CapEx complications
Healthcare is an equipment-intensive industry and lease terms can directly impact a healthcare organisation’s decision to purchase equipment for a particular location, especially when considering lifespans and medical insurance rebates.
Medical practices and diagnostic centres must carefully consider leasing terms when planning CapEx and new equipment purchases to ensure that property and equipment leases are well-aligned. Longer leases are commonplace, and they often come with additional administrative burdens.
4. Lack of centralised data
Like many other traditional industries with legacy systems and processes, healthcare lease managers often must deal with fragmented property and lease data, making it difficult and time-consuming to locate information when required. Sharing important financial information with other stakeholders is also challenging.
The inefficiencies that come with silos and spreadsheets lead to ineffective collaboration and a range of contract risks. These include missing key dates, defaulting on clauses and being subject to inaccurate CPI adjustments.
5. Failures in forward planning
Without a clear understanding of current lease terms, upcoming renewals, and the associated costs, healthcare lease managers may find themselves unable to plan effectively for the future. This can lead to missed opportunities for renegotiation, cost savings, or adjustments that align better with the business’s strategic direction.
Expert lease management software tailored for healthcare tenants
In a highly regulated and complex industry like healthcare, failing to stay on top of lease management can lead to bigger headaches compared to many other sectors.
At MRI Software, we’ve been developing, evolving, and perfecting our lease management software for more than 30 years. Our platform is more than just a place to store data; it’s an integrated solution designed to make managing information easier and to enhance strategic decision-making capabilities for healthcare property managers and their teams.

MRI’s lease management solution helped us to identify and reclaim numerous landlord billing errors and overcharges, particularly around CPI reviews.
– Hamish McGowan National Property Manager I-MED Radiology Network
Overcoming lease management hurdles in the healthcare sector
From increasing costs to an aging population and the need for better technological infrastructure, Australian and New Zealand healthcare providers continue to face a dynamic list of challenges. Hospitals, GP clinics, diagnostic centres and dentists a…
