tci Part B Insider - 2004 Issue 2

Physician Notes: Physician Practices Can Merge With Hospitals

Stark concerns remain unresolvedA merger between a physician practice and a hospital received a green light from the HHS Office of Inspector General on Dec. 11, despite a theoretical risk of kickback concerns.  In advisory opinion 03-15, the OIG takes the measure of the proposed reintegration of a hospital and medical practice that had split into separate corporate entities back in 1963. Under the deal, the practice would transfer its assets to the hospital in exchange for the funds necessary to satisfy all encumbrances related to the transferred assets - a less-than-fair-market-value sum - and spots on the...

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