tci Part B Insider - 2005 Issue 5

Joint Ventures: 'Under Arrangement' Deals Offer Better Payment, Fewer Fraud Risks

But don't pay docs more than their share of what the business is worthWarning: Don't rush into a full-fledged joint venture with your local hospital without considering the alternatives.Often, physicians want to provide a particular technical service, such as lithotripsy or MRIs, to their local hospitals. One approach is for the physicians and the hospital to form a company together to provide that service to the hospital. But these deals can raise fraud and abuse concerns.Luckily, there's an alternative. Instead of forming an equity partnership with the hospital, the  physicians can form their own company and...

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