Our expertise · Engineering-Based Cost Segregation

Medical & Healthcare Facilities Cost Segregation

Clinical complexity deserves engineering evidence, gathered without getting in the way of care.

Hospitals, medical offices and other healthcare facilities contain some of the most closely integrated building and clinical systems in commercial real estate: imaging suites, laboratory casework and specialized utilities woven into the structure that houses them. Specialized use does not by itself make an asset short-life property; what each component serves, how it is built and who holds depreciable basis determine its classification. With 100% bonus depreciation permanently restored under federal legislation enacted in July 2025, those distinctions carry more weight than they have in years. Green Summit develops engineering-based cost segregation studies for healthcare facilities, analyzing operational function while respecting the access, infection-control and documentation constraints of an operating facility.

Founders' cost segregation experience since 2001
Licensed engineers and in-house CPAs
Founded 2014
Audit-ready documentation

Who this is for

Owners, investors and operators of hospitals, medical offices and other healthcare facilities, companies that own their own clinical or laboratory space, and the accounting firms that advise them.

Accounting & Advisory Firms Building Owners, Investors & Operators Manufacturers & Technology Companies

What we do

Assess the actual asset. We review medical-support infrastructure, imaging suites, laboratory casework, specialized utilities and site improvements, and we keep the list of review candidates separate from any conclusion about their recovery period.
Develop supportable costs. We start from the acquisition and construction records you have, add documented estimating methods where the records stop and reconcile the analysis to the relevant basis.
Coordinate the investment context. We work with your tax advisor on ownership, utilization, hold period, disposition and state-treatment considerations, including the ownership and leasing structure between a facility's owner and its operator.
Support your tax team. We explain the technical basis for each classification and answer your advisor's questions, during the engagement and if the IRS asks later.

Our process

Screen the property. We review the facility, the tax-owner context and the records available before we define the study, and we identify who the depreciating tax owner actually is.
Review the components. We examine installed components, functional use and cost evidence, coordinating access, safety and documentation with the facility so patient operations and site protocols come first.
Deliver and support. We deliver the engineering study and walk your tax advisor through the basis for each classification.

What you receive

An engineering-based report with asset schedules and a cost reconciliation for the property in the study. The supporting analysis addresses clinical fit-outs, equipment support, building systems and site improvements, and it identifies every assumption and limitation so your tax advisor can determine usability, elections, accounting-method changes and the final return position.

Benefits

Property-specific analysis rather than a standard reclassification percentage.
A clearer asset and cost record for the owner's advisors, with clinical and building systems distinguished on function rather than label.
Potential timing benefits evaluated in the context of your actual tax and investment position. We never present a deduction as a guaranteed cash return.

Why Green Summit

Most tax incentive studies are written by accountants. Ours are written by engineers and reviewed by CPAs. Green Summit's founders bring individual cost segregation experience dating to 2001 and 2007, respectively — professional experience that predates the firm's founding in 2014 — and that background shapes how we connect construction knowledge, engineering analysis, cost development and a reconciled record on every healthcare study.

As a consulting partner that combines a licensed engineering firm with in-house tax professionals, we know how to work inside an operating facility, and we build every study to be audit-ready from day one.

Frequently asked questions

What is a cost segregation study for a medical or healthcare facility?

An engineering-based analysis that separates the cost of the facility into its components and assigns each to the depreciation class the tax rules allow, so qualifying items recover over 5, 7 or 15 years rather than the building's 39-year life. In a healthcare setting the work means distinguishing structural and building-serving systems from clinical fit-outs, equipment support and specialized utilities, and doing it within the facility's access and infection-control protocols. Your tax advisor determines how the result is used.

Does medical use make an asset short-life property?

No. Specialized use does not remove the need to distinguish structural or building-serving systems from qualifying personal property and other classifications. We evaluate each component on what it serves and how it is built, not on the fact that it sits in a clinical space.

Can the study cover an occupied facility?

Yes. We coordinate access, safety and documentation with the facility. Available plans, invoices and approved observations support a scope that respects patient operations and site protocols, so the study never competes with care.

Can tax-exempt operators benefit in the same way?

Not necessarily. The depreciating tax owner and its circumstances matter. We never promise a tax-exempt operator depreciation-related tax savings; the ownership and leasing structure requires your advisor's review before anyone counts on a benefit.

What information should we provide?

A functional review of clinical and building systems, records of equipment and improvement ownership, cost reconciliation and the records of any phased modernization. Purchase or construction costs, prior depreciation records, plans and improvement history help us establish the scope.

Will the study permanently eliminate tax or increase property NOI?

No. Cost segregation generally changes the timing of depreciation deductions, not the total. Tax utilization, basis and disposition effects require your advisor's review, and depreciation itself does not reduce the property's operating expenses or automatically improve operating NOI or lender-defined debt coverage.

Let's talk about what a study could uncover in your healthcare facility.

Tell us the facility and where it is, who owns and who operates it, whether it was acquired, built or renovated, and roughly when.

Program and technical references

IRS: Cost Segregation Audit Technique Guide

Program information reviewed September 22, 2026. Current applicability, qualifications and program terms are confirmed for each engagement.

Or call 321-273-2200 · inquiry@greensummit.com