Management relationships can be structured to meet a safe harbor and Stark exception. Service contracts can also be an integral part of the ongoing relationship between the parties. A number of clinical requirements can be met through formal service contracts. On the other hand, such contracts must be very carefully drafted in order to avoid legal difficulties. Exceptions for personal service arrangements provide potential protection if all requirements are met.
Leases also present a means for ongoing interconnection between the parties.
A physician may find a lease to be financially more desirable than purchasing the office. Leases can be structured so as to fit within an applicable Stark exception as well as an anti-kickback safe harbor. Recruitment assistance may provide a means for a hospital to indirectly assist a physician who has returned to private practice after a divestiture. Although regulatory exceptions exist for recruitment, the exceptions are not applicable unless the assistance is provided directly to the new recruited physician. Robert B. Ramsey is a shareholder of the law firm of Buchanan Ingersoll and is co-chair of its Healthcare Litigation Group .