At The Podium

Stark Reality — Navigating the requirements for fair market value in physician compensation arrangements

Date: June 25, 2014

Event: McAfee & Taft Healthcare Industry Webinar

Location: Online

Elizabeth L. Dalton
Elizabeth L. Dalton
Patricia A. Rogers
Patricia A. Rogers
Jen Johnson
Jen Johnson

While Stark law generally prohibits physicians from making referrals to entities with which they have a financial relationship, the strict liability statute does provide a number of exceptions that apply to physician compensation arrangements. Navigating the law can be extremely complex, though. And as a number of recent qui tam lawsuits have shown, failure to comply with these federal regulations can result in multimillion-dollar judgments.

During this one-hour complimentary webinar, McAfee & Taft healthcare attorneys Elizabeth L. Dalton and Patricia A. Rogers discuss the statutory and regulatory framework and case law related to physician compensation arrangements, explain how the courts have interpreted the concept of “fair market value,” and provide practical advice for avoiding costly litigation, damages and penalties. Joining them in the discussion is special guest Jen Johnson, a partner with VMG Health, a recognized national leader in providing valuation solutions to the healthcare industry.

Specific topics covered include:

  • Overview of the physician self-referral prohibition under Stark law
  • Stark law regulatory exceptions
  • “Fair market value” defined
  • Insights from recent case law about FMV, commercial reasonableness, and “taking into account” the volume or value of referrals
  • Practical advice for structuring compensation arrangements
  • Obtaining and scrutinizing independent FMV valuations
  • Engaging the valuation consultant under attorney/client privilege