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Outpatient Surgery E-Weekly

Malpractice Verdicts Often Favor Physicians

Physicians come out on the winning end of 80% of malpractice claims that end in jury verdicts, according to researchers at Massachusetts General Hos...

Study: CT Colongraphy Effective in Finding Polyps

A CT-scan-based, laxative-free "virtual colonoscopy" may be as effective as standard colonoscopy in finding potentially cancerous polyps, according ...

Wrong-Site Prevention Video Shows the Right Way

Wrong-site, wrong-patient and wrong-procedure surgery must be prevented at all costs. The 3 steps of the Joint Commission's Universal Protocol make ...

Archive > May, 2006 Vol. VII, No. 5

Legal Update

Selling Surgery Center Shares at a Discount

Jerry Sokol

Jerry Sokol, JD

There is a possible way out for some ambulatory surgery centers. In certain situations, you can sell equity in your ASC for an amount less than what is considered FMV - without creating meaningful health law regulatory risk. This position is based on the "group practice" and "extension of practice" concepts, which we'll get into. It only applies to surgical centers that are affiliated with physicians in a single-group practice, even if there is an ASC management company or health system also involved as an owner.

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Categories: Business Management, Legal/Regulatory
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Slipping the FMV standard; Negotiating the safe harbor; Equity in the practice and the ASC; ASC This; ASC's; ASC. Equity; ASCs; Anti-kickback Statute; Arrangements; FMV; FMV. Current ASC; Fair Market Requirement This; Market Requirement This; Requirement This; Single-group; Skirting; Statute; acquisition; active; admired; advance; advice; affiliated; ambulatory; amount; analysis; ancillary; anticipated; applies; apply; assets; bank; base; basis; benefit; big; book; bring; bringing; buy; buying; care; center; centers; check; civil; comfort; company; concern; considered; context; continue; contributing; creating; credit; criminal; current; deal; deemed; degree; derive; deserving; discounted; elects; elements; eliminates; entity; equity; expected; explicitly; extension; fact; failure; fair; federal; feel; financing; formula; frustrated; future; gastroenterology; give; group; guidance; harbor; he'll; health; healthcare; helpful; higher; historic; hospital; implications; important; incomes; increased; induce; interest; interested; interests; investment; investor; involved; justify; law; loaning; long; lower; management; market; meaningful; meet; members; minority; money; multi-specialty; multiple; multiplied; needing; netting; non-group; non-utilizer; note; offered; offering; order; owned; owners; ownership; pay; percent; performance; physician; physician-owners; physicians; portion; position; practice; practices; present; prevalent; previous; price; primary; procedures; produce; profitability; prohibited; provide; purchase; reasonable; referrals; regulatory; related; require; requirement; resist; result; risk; safe; sale; sales; satisfy; seek; sell; selling; separate; set; significant; single-group; solely; specialties; stake; start; substantial; surgeon; surgery; surgical; system; talented; tax; terms; third-party; typically; unrelated; users; utilizers; utilizing; valuations; ventures; violating; violation; volume; write; writing

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