The financial strategy Cleveland Clinic is using to generate cash while cutting expenses

CLEVELAND, Ohio — The Cleveland Clinic recently sold 24 of its properties in a large-scale real estate deal that provides the health system with a cash infusion while creating a new tax revenue stream for local communities.

The transaction involves a sale-leaseback agreement, allowing the Clinic to continue its operations uninterrupted at all locations.

These are the four takeaways from the original article based on reporting from cleveland.com.

1. The Core “Sale-Leaseback” Transaction

The Cleveland Clinic sold 24 properties in Ohio and Florida to MedCraft, a Minneapolis-based healthcare real estate firm, in what is known as a sale-leaseback agreement.

This arrangement allows the Clinic to receive a large sum of cash from the sale while signing a long-term lease to continue operatin