HHS-OIG Declines to Impose Sanctions on Physician Practice for Employed Physicians’ Bonus Compensation Structure Tied to ASC Facility Fee Profits

Lexology October 26, 2023
Barnes & Thornburg LLP

Highlights

The HHS-OIG declined to impose administrative sanctions on a physician practice that offers employed physicians bonus compensation tied to the practice’s net profits from facility fees attributable to services provided by the employed physician

The agency broadly interpreted the AKS’ statutory exception and regulatory safe harbor related to employees

The arrangement did not involve designated health services or otherwise implicate the Stark Law, so this opinion should be narrowly interpreted

The Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG) issued Advisory Opinion 23-07 on Oct. 7, a favorable decision regarding a proposed arrangement in which a physician practice would implement a bonus compensation structure based on the net profits the practice receives for...

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