+ Site Statistics
+ Search Articles
+ PDF Full Text Service
How our service works
Request PDF Full Text
+ Follow Us
Follow on Facebook
Follow on Twitter
Follow on LinkedIn
+ Subscribe to Site Feeds
Most Shared
PDF Full Text
+ Translate
+ Recently Requested

Special report on reimbursement. The safe harbor for small investment interests: where do joint ventures go from here?

Special report on reimbursement. The safe harbor for small investment interests: where do joint ventures go from here?

Health Care Law Newsletter 6(11): 15-20

There is no specific federal self-referral legislation presently proposed or in effect that statutorily prohibits providers from referring Medicare or other patients to entities in which the referrers have an investment interest, except for existing "Stark" legislation, which applies only to clinical laboratory services, effective January 1, 1992. (See Newsletter, Vol. 6, No. 1, January 1991, at 3.) Thus, health care joint ventures are not per se illegal. The publication of the Safe Harbor Regulations does nothing to change this fundamental fact, and it should not cause providers to abandon existing joint ventures, or planned ones, in a "knee-jerk" fashion, without careful analysis. Of course, there is no guarantee that expanded "Stark" legislation, or some other new self-referral legislation, will not be enacted in the future to prohibit providers from referring patients to entities in which they have an investment interest. Because of this uncertainty, all health care joint ventures should contain "unwinding" provisions to govern the rights and obligations of investors in the event that the venture is required to, or the participants voluntarily elect to, dissolve. Any new venture being contemplated should plan for dissolution, and existing ventures should undertake an internal review of their charter documents to assess whether the rights and duties of all participants upon dissolution are properly spelled out. If not, amendments should be made now, while all participants are on good terms. A failure to agree in advance upon such important issues is an invitation to discord, and possibly even litigation.

Please choose payment method:

(PDF emailed within 1 workday: $29.90)

Accession: 047408170

Download citation: RISBibTeXText

PMID: 10115384

Related references

Special report. Investment safe harbors: new challenges for MD joint ventures. Health Policy Week 20(30): Suppl 1-7, 1991

Narrow harbors. Few joint ventures will find haven in the investment-interest safe harbor. Health Progress 72(10): 44-47, 1991

Joint ventures: the proposed safe harbor regulations. Applied Radiology 18(9): 27-29, 1989

Safe harbor rules shed new light on surgery center joint ventures. Gha Today 44(1): 3 6, 2000

Special report. HHS issues final safe harbors: but underwater mines await hospital-MD ventures. Hospital Revenue Report: Suppl 1-4, 1991

Special report on corporate/finance. It's time to re-evaluate your joint ventures!. Health Care Law Newsletter 8(4): 15-20, 1993

Special report on reimbursement. Is there life after the fraud and abuse safe harbors?. Health Care Law Newsletter 4(5): 8-12, 1989

Special report. HHS IG's final "safe harbor" recommendations: more exemptions--and more strings. Health Policy Week 18(42): Suppl 1-6, 1989

Direct investment and joint ventures in China. 1991

Special report on reimbursement. Final Medicare fraud and abuse safe harbors are published. Health Care Law Newsletter 6(10): 13-19, 1991

Safe harbors and physician investment interests. Administrative Radiology 10(10): 33-5 37-8, 1991

Special report on reimbursement. Inspector General's office publishes new managed care safe harbors. Health Care Law Newsletter 8(2): 16-21, 1993

Joint ventures. MRI as joint investment. Hospital Forum 27(5): 27-28, 1984

Joint ventures: beyond the safe harbors. Health Progress 70(4): 70 77, 1989

Special report on antitrust. Part Two: Hidden antitrust risks in joint ventures. Health Care Law Newsletter 3(3): 12-15, 1988