Commercial Reasonableness: Defining Practical Concepts and Determining Compliance in Healthcare Transactions for Physician Services

BVResearch Pro
January 6, 2017
Pershing Yoakley & Associates, PC
8011 Offices and Clinics of Doctors of Medicine
622110 General Medical and Surgical Hospitals
healthcare
mergers and acquisitions (M&A), physician practice, fair market value (FMV), anti-kickback statute, commercial reasonableness, tuomey healthcare system

Summary

Financial relationships between hospitals and physicians must be both commercially reasonable and at fair market value (FMV) to meet certain regulatory requirements. Ensuring compliance with these requirements is critical--failing to do so could invoke sanctions and penalties related to the Stark Law, the Anti-Kickback Statute, the False Claims Act (FCA), and Internal Revenue Service 501(c)(3) status for tax-exempt entities. As such, a thorough understanding of these requirements is necessary to ensure compliance in transactions between hospitals and physicians, as well as other parties with referral relationships within the healthcare environment.
Commercial Reasonableness PYA White Paper
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