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OIG Issues Advisory Opinion on Physician Investment in an ASC

The OIG posted a new advisory opinion regarding investment in an ambulatory surgery center (ASC) by surgeons and a hospital corporation. The proposed 70/30 physician/hospital joint venture does not meet the ASC safe harbor because ((1) the surgeons are investing in the ASC thru a partnership rather than a direct investment, (2) 4/18 surgeons do not meet the requirement that they derive at least one-third of their income from performing ASC procedures, (3) the hospital corporation is in a position to make or influence referrals to the ASC, and (4) the services provided by the hospital corporation to the ASC do not meet the personal services safe harbor. The OIG concluded, however, that the failure to meet these requirements of the safe harbor did not raise significant risks based on the circumstances of the joint venture and the safeguards put into place by the parties.

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This page contains a single entry from the blog posted on July 25, 2008 3:17 PM.

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