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LEGAL UPDATE
intent of later selling minority interests to physicians at a lower price.
A thorough evaluation of a facility's equity transactions and a cleareyed assessment of its referrer relationships, conducted in consultation with its legal advisors, should help to solidly shelter ASC owners
and investors against regulatory scrutiny in the event they find themselves caught up in the whistleblower frenzy. OSM
Mr. Kaye (joshua.kaye@dlapiper.com) is a partner and co-chair of the
healthcare sector at DLA Piper's Miami office. Mr. Rogers
(adam.rogers@dlapiper.com) is of counsel to the firm.
REFERRING DOCS
Avoid These 4 Danger Zones
Surgical centers and investors should carefully examine their relationships
with referring physicians in order to avoid Anti-Kickback Statute violations.
Arrangements likely to trigger significant risk include:
1. Offering more equity (or equity on more favorable terms) to physicians
with higher case volumes;
2. Applying future distributions toward the purchase price of equity shares;
3. Assisting with the financing of a prospective physician-owner's equity purchase; or
4. Compensating referring physicians with medical directorships or other
financial arrangements in addition to, or in lieu of, a pro rata return on
— Joshua Kaye, JD, and Adam Rogers, JD
investment in the ASC.
Response from Meridian
In a statement, Meridian Surgical Partners CEO John C. Wilson, Jr., told
Outpatient Surgery that there is no evidence to substantiate the claim.
"Meridian Surgical Partners believes that the allegations in the Simmons
lawsuit are without merit. Meridian will continue to vigorously defend itself
in the lawsuit," he says.
N O V E M B E R 2013 | O U T PAT I E N T S U R G E R Y M A G A Z I N E O N L I N E
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