Entries from January 2007 ↓
January 30, 2007 — Stark Law
The phrase “Stark Law” is whispered around medical practices more than it should–and that’s dangerous for your practice. It’s a complex law, and unfortunately for you, it’s probably mentioned without the exceptions and safe harbors that make your ancillary healthcare venture legal.
Thus, when launching a new healthcare venture, consider giving your staff a presentation on Stark Law. Even better, have your attorney give the presentation, as it will give it more authority. (The cost of this presentation will be marginal if you’ve already hired an attorney to ensure Stark Law compliance.) The workshop will serve two purposes:
1. Eliminate chatter in your practice that your new venture is illegal; and
2. Educate your staff to handle questions from patients and other practitioners.
Of course, you probably do not want your staff answering such questions, but wouldn’t you rather have your staff reply “We had a Stark Law workshop” instead of “I don’t know?”
January 17, 2007 — Professional Associations
Texas Business Organizations Code Section 5.058 states that the name of a professional association must contain:
(1) the word “associated” “associates” or “association”;
(2) the phrase “professional association”; or
(3) an abbreviation of one of those words or that phrase.
Thus, if your name was Bill Snyder and you were launching your own private practice, your official practice name could be:
(1) Bill Snyder, M.D., Associated
(2) Bill Snyder, M.D., Association
(3) Bill Snyder, M.D., Professional Association
(4) Bill Snyder, M.D., PA
Of course, you have the option to use a different name than your personal name, such as “Dallas Allergy Association.”
January 9, 2007 — Physician
When a physician becomes part-owner of an established medical practice, many documents can be used to evidence the purchase. The purchase agreement is one of these documents and should include the physician’s ownership percentage, purchase price, and payment terms. This document usually provides representations and warranties by the seller and the practice, in order to disclose pertinent information about the practice being bought into, such as:
(a) assets and liabilities of the medical practice;
(b) current standing with the state’s medical board;
(c) current standing with the IRS and other tax entities;
(d) all exhibited documents reflect the medical practice’s history;
(e) all billing has been done in compliance with CMS and other law; and
(f) the purchase agreement does not violate any other agreements which the medical practice may be bound.
Don’t let your enthusiasm for “arriving” in your medical career interfere with proper procedure.
January 3, 2007 — Anti-Kickback, Stark Law
The latest copy of Headnotes, Dallas Bar Association’s monthly newspaper, arrived in my mailbox today and I was happy to see that it was focused on Health Law. Of course, no health law survey would be complete without an article trying to summarize Anti-Kickback and Stark Law.
The author, Kimberly Elting, did a fantastic job summarizing those and other connected issues. However, I think we shouldn’t summarize such terribly drafted law simply because it rewards poor drafting.
That is, any law that has an exception to the exception of the law’s main exception is poorly drafted and should be revised.
While I enjoyed the constant back-and-forth action in this year’s Fiesta Bowl, such back-and-forth is painful in reading law…and I’m a lawyer. I can only imagine how the physician wondering if he can open up a new facility feels.
