Legal Issues - Becker's ASC Review

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Legal Issues

Missouri Health Care System to Pay $60 Million to Settle False Claims Act Allegations

Written by Rob Kurtz
Wednesday, 23 July 2008
Lester E. Cox Medical Centers, a health care system headquartered in Springfield, Mo., will pay $60 million to settle claims that it violated the False Claims Act, the anti-kickback statute and the Stark statute, according to the U.S. Department of Justice.
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Is Block Leasing in Trouble?

Written by Scott Becker, JD, CPA, and Jason Greis, JD
Monday, 21 July 2008
The general concept over the past several years has been that block leasing presents less regulatory risk than per-click leasing. In essence, under a per-click lease, a party buys an image or test and resells it to a payor or patient. This type of arrangement is clearly subject to the anti-markup rules. CMS continues to express concern about the growth of imaging costs to the Medicare program. The agency has taken three actions over the past eighteen months that may impact the imaging sector and its future ability to continue block leasing. CMS has: 1) commented that block leasing arrangements are also subject to the anti-markup rule; 2) articulated new situations in which the anti-markup rule for purchased diagnostic tests will apply; and 3) proposed new registration requirements for independent diagnostic testing facilities. This article briefly discusses these three issues.
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In the News: Anesthesiology Practice Sues Physician for Breach of Employment Agreement

Written by Staff
Sunday, 13 July 2008
An anesthesiology practice in Bloomington, Ill. is suing a former physician member of the practice for breach of a non-compete clause after the doctor agreed to provide anesthesiology services for a new surgery center, according to Pantagraph.com.
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CMS Continues Attempts to Address Anti-Markup Provisions with Two Alternatives

Written by Staff
Sunday, 13 July 2008
CMS has proposed two alternatives to revise its anti-markup rule as part of its proposed 2009 changes to payment policies and rates under the Medicare physician fee schedule.
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Individual Lacks Standing to Challenge Facility's Certificate of Need

Written by Stephanie Wasek
Thursday, 10 July 2008
A man's challenge of a certificate of need issued by the Alaska Department of Health for an open-bore MRI facility cannot stand, because the individual is not "substantially affected" by the issuance, the Supreme Court of Alaska has ruled.
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Non-Compete Agreement Imposed by Doctor Group on Physician's Practice Upheld by Court

Written by Stephanie Wasek
Thursday, 10 July 2008
An employment contract's non-compete clause did not unreasonably restrict a physician's practice, the Kansas Court of Appeals has ruled. The non-competition agreement in the contract between a physician group and a physician placed restrictions on where the physician could practice after employment was terminated.
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MarCap Acquisition by Tygris Completed

Written by Staff
Friday, 27 June 2008
Tygris Commercial Finance Group, a recently formed commercial finance company, has completed its acquisition of substantially all of the assets and business of MarCap, a Chicago-based middle market healthcare equipment finance company. MarCap joins Tygris Asset Finance, Tygris's middle market equipment leasing and asset finance business led by Laird Boulden, and will continue to operate under the MarCap brand.
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In the News: MGMA Asks CMS to Take "Time Out" With Stark

Written by Staff
Monday, 16 June 2008
The Medical Group Management Association has asked CMS to take a “time out” concerning the growing complexity of Stark regulations.
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Fee Splitting Arrangement Between Physicians and Medical Biller Invalidated by Court

Written by Stephanie Wasek
Monday, 16 June 2008
An Illinois appeals court has ruled that a percentage-based fee arrangement between a physician group and a medical billing company is invalid, affirming an earlier circuit court decision.
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