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Structuring Exclusive Contracts Between Hospitals and Physician Groups

Negotiating Exclusivity, Payor Contracting, and Other Key Provisions; Ensuring Stark Law, AKS, and Tax-Exemption Compliance

Note: CPE credit is not offered on this program

Recording of a 90-minute CLE video webinar with Q&A

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Conducted on Tuesday, October 11, 2022

Recorded event now available

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This CLE course will provide guidance to counsel involved in structuring exclusive contracts between hospitals and physicians or physician groups. The panelist will discuss the nuts and bolts of structuring the agreements, including restrictive covenants, payor contracting provisions, performance standards, and exclusivity. The panelist will also address strategies to overcome regulatory issues.

Description

Hospitals and medical staffs both strive to provide consistently high-quality care for patients. Alignment between the hospital and staff is essential to meet patient needs successfully. One approach is to utilize exclusive contracts. Hospitals have historically had deals with radiology, anesthesiology, pathology, and ER groups to provide clinical services for those departments. Recently, however, the industry is seeing some expansion to another specialty.

Healthcare counsel, hospitals, physicians, and physician groups must consider several factors when structuring exclusive contracts, including the level of exclusivity, performance standards, payor contracting, compensation, and restrictive covenants. Further, careful structuring is required to navigate Stark Law, Anti-Kickback Statute, tax exemption, and other regulatory issues.

Listen as W. Kenneth Davis, Jr., Partner with Katten Muchin Rosenman LLP, discusses the pros and cons of exclusive contracts with hospitals and the legal issues involved in these contracts between hospitals and individual physicians and physician groups. He will examine the necessary provisions of the agreement and what arrangements are hotly negotiated. He will provide both the hospital and the physician/physician group perspectives.

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Outline

  1. Exclusive contracts with hospitals--advantages and disadvantages, and why they are increasing
  2. Stark Law, AKS, and tax-exemption considerations
  3. Nuts and bolts
  4. Basic provisions
    1. "Clean sweep," and potential reporting-related implications
    2. Hot button issues the parties need to work through and how to balance needs/expectations of hospital and physician group
    3. A process to get the deal done
    4. Dialogues that often happen during negotiations

Benefits

The panelist will review these and other key issues:

  • What are the significant stumbling blocks that can hinder the parties in negotiating an exclusive contract?
  • What are the key considerations when determining whether to enter into an exclusive contract for the physician or physician group? For the hospital?
  • What steps should counsel take to ensure compliance with Stark Law and AKS?

Faculty

Davis, W. Kenneth
W. Kenneth Davis, Jr.
Partner
Katten Muchin Rosenman

Mr. Davis counsels clients in the formation of new businesses, joint ventures, management and other service...  |  Read More

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