Monday, May 24, 2021
The U.S. Department of Health and Human Services’ Office of Inspector General (“OIG”) recently issued Advisory Opinion No. 21-02, regarding a joint investment by a health system, a manager, and certain surgeons in an ambulatory surgery center (“ASC”) (the “Proposed Arrangement”). According to a national survey, most hospitals and health systems are planning to increase their investments in ASCs and anticipate converting hospital outpatient departments to ASCs. Many hospitals with ASCs operate the ASCs as physician joint ventures. As payors and patients continue to show interest in having outpatient procedures performed in ASCs, there is an expected trend to see an increase in investments and joint ventures in ASCs therefore making the Advisory Opinion particularly noteworthy.
The U.S. Department of Health and Human Services’ Office of Inspector General (“OIG”) recently issued Advisory Opinion No. 21-02, regarding a joint investment by a health system, a.
New OIG Advisory Opinion Begs the Question: Is It Time to Reform the ASC Safe Harbor?
Health Update May 12, 2021
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On April 26, 2021, the Office of Inspector General of the U.S. Department of Health and Human Services (OIG) issued a favorable advisory opinion involving a proposed ambulatory surgery center (ASC) joint venture between a health system, a management company and certain surgeons. While the rationale set forth in Advisory Opinion No. 21-02 (the Opinion) the OIG’s first on this topic in over a decade is not particularly novel and dovetails with the safeguards highlighted in prior OIG guidance, the opinion reinforces the latitude that hospitals, health systems and other providers have to structure ASC arrangements that do not fit precisely within the applicable safe harbor. In addition, the flexibility underscored in this, and other past advisory opinions, calls into question whether the ASC safe harbor’s rigid and overly technical standards continue to
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On April 26, 2021, the Office of the Inspector General (OIG) of the Department of Health & Human Services (HHS) released Advisory Opinion No. 21-02 (Opinion 21-02), a favorable opinion regarding an ambulatory surgery center (ASC) physician/health system/management company joint venture arrangement (Proposed Arrangement), and outlined safeguards to mitigate risk under the arrangement.
In its opinion, the OIG said it would not impose sanctions on the Proposed Arrangement, which contemplated a health system (System), certain orthopedic surgeons and neurosurgeons employed by the System (Physician Investors), and a management services company (Manager) owning a joint venture ASC. The OIG concluded that although the Proposed Arrangement could generate remuneration prohibited by the Federal Anti-Kickback Statute (AKS), the OIG would not impose administrative sanctions because the Proposed Arrangement would present a low degree o