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O U T P AT 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 | O C T O B E R 2 0 1 5
directorships and other
financial arrangements
between the facility and
the physicians. This
legal compliance review
should ensure that legiti-
mate services are con-
sistently being provided
at fair market value.
When possible, try to fit
the arrangement into a
safe harbor under the
Anti-Kickback Statute.
The review should, at
minimum, address the
following questions:
• Are the services to
be provided under the arrangement legitimately needed?
• Is the arrangement established in a written agreement between the
parties?
• Is the term of the arrangement set forth in the agreement, and is it
for a duration of at least 1 year?
• Does the agreement detail all of the services to be provided under
the arrangement? If the review is of an existing arrangement, have all
of the services been provided in strict accordance with the terms of
the written agreement?
• Are time records required? If the review is of an existing arrange-
ment, have the time records been accurately and consistently kept
and provided to the other contracting party?
• Is the rate of compensation consistent with fair market value in an
L E G A L U P D A T E
FAIR WARNING
About the Anti-Kickback Statute
The federal Anti-Kickback Statute prohibits offer-
ing, paying, soliciting or receiving anything of
value to induce or reward referrals or generate
federal healthcare program business. An
arrangement may violate this law if even one of
its purposes is to compensate a physician for
past or future Medicare referrals.
• Criminal penalties. Include fines and impris-
onment of up to 5 years.
• Civil and administrative penalties. Include
fines (which can be assessed at up to 3 times the
amount of the kickback), exclusion from federal
healthcare programs and prosecution under the
federal False Claims Act.
