Lexology November 7, 2023
OIG Advisory Opinion on Physician-Employee Bonuses
The Department of Health and Human Services (“HHS”) Office of Inspector General (“OIG”) issued Advisory Opinion No. 23-07, which elaborated on which physician-employee bonuses based on profits do not violate the federal Anti-Kickback statute.
The Advisory Opinion assessed the regulatory implications under the federal Anti-Kickback statute and sanctions or penalties under the Social Security Act (the “Act”) for a multi-specialty physician practice (the “Requestor”) to implement an employment compensation bonus structure for their physician-employees (the “Physician Employees”) based on net profits from when they perform outpatient surgical procedures at one of the Requestor’s ambulatory surgical centers (“ASCs”) per calendar quarter (“the Proposed Arrangement”).
Under the federal Anti-Kickback statute, it is a criminal offense to...