tci Part B Insider - 2005 Issue 5

Joint Ventures: Don't Go Into Business With An Ignorant Partner

Watch out for these physician-hospital joint venture pitfallsIn recent years physicians have formed ventures with hospitals and other providers to offer a specialized service to their patients. But the HHS Office of Inspector General has warned that such joint ventures pose compliance hazards under the anti-kickback and Stark self-referral laws.The OIG issued two special fraud alerts on joint ventures, in 1989 and 2003. The agency warned that it would be suspicious of any venture in which one party controls the stream of referrals - especially if you've entered into a line of business that requires your referrals to...

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