How to Handle Stark and Anti-Kickback Legal Barriers When Physicians Invest in an MSO

This is a story about how Harry, a healthcare entrepreneur, worked through a proposed arrangement that was raising Stark and Anti-Kickback issues. Chapter 1. Harry the Healthcare Entrepreneur Confronts the Stark and Kickback Puzzle Joe, a savvy healthcare entrepreneur, has some wealthy medical doctors “lined up” to purchase investment interests in an LLC that will serve as a management company (or medical services organization, MSO, for a professional medical corporation (PMC) or medical group. The LLC has a complex structure where it is going to be 50% owned by the doctors and 50% owned by Harry. Harry proposes that the MSO operate as a typical MSO, providing management and marketing services at fair market value to physicians and professional medical corporations that operate medical groups. CORPORATE PRACTICE OF MEDICINE ON STEROIDS: HOW YOUR MSO AND PROFESSIONAL MEDICAL CORPORATION COULD WORK TOGETHER WITHOUT COURTING LEGAL DISASTER You,…

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