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ASCs in the news: OIG opinion declines to penalize ASC joint ownership by surgeons and hospital

Ambulatory Surgery Reimbursement Update, August 19, 2008

On July 25, the Office of Inspector General (OIG) posted OIG Advisory Opinion No. 08-08, regarding the development and operation of an ASC owned jointly by a hospital and a group of surgeons.

In the opinion, the OIG concluded that it would not subject this arrangement to administrative sanctions available under the federal anti-kickback statute. OIG gave this opinion despite the fact that the arrangements did not meet any specific statutory protections (called “safe harbors”).

OIG concluded that the safeguards put in place by the parties to the arrangement made the risks “sufficiently low.”

The OIG was careful to point out that its conclusions applied only to the specific arrangement presented to them in the request for the opinion. However, an entry on SUPRASPINATUS, the blog of the New York State Bar Association health law section,  is one of a number of reactions that consider the ruling favorable.

An article on the McDermott, Will and Emery web site, dated August 6,  agrees. It says that the OIG has “demonstrated flexibility in permitting joint ownership of ASCs by physician and hospital investors outside of the strict confines of the various ASC safe harbors.”  In addition, the article says that the approval provides guidelines for the structuring of indirect ownership.

To read the OIG opinion, click here. 

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