Are you on the right side of the law? Faulty physician agreements come with a hefty price tag

Description

Abstract: In 2013, a hospital system was walloped with a $237 million damages verdict based on physician compensation agreements that violated the Stark Law and the False Claims Act (FCA). And this was all despite its having obtained a three-page pretransaction valuation giving the arrangements the thumbs-up. This article explains how the agreements worked, but notes the critical mistakes that occurred during their preparation. A sidebar discusses whether so-called anticipated referrals constitute a proper basis for finding that a physician’s compensation takes into account the volume or value of referrals.