Q A community hospital intends to rent clinic space, and the valuations are a year or two old. The hospital believes these valuations are still valid. Is there a specific time period during which a valuation generated as part of a “formal, professional appraisal process” remains valid, before the findings of such a valuation may no longer be considered indicative of fair market value?

A The determination of the fair market value of a lease, including reliance on an appraisal, to value the rental of office space and of physician services, is a question of fact that must be determined by the Board of Trustees of the hospital (Attorney General’s Opinion to Dillard, May 26, 2017)