Physicians' Legal Update

Stark & Anti-Kickback. If a doctor treats Medicare or Medicaid patients, that doctor is subject to numerous statutes and regulations governing those programs, including the (in)famous Stark and Anti-Kickback laws. Generally speaking, Stark forbids referrals by physicians to businesses they own, and Anti-Kickback forbids payments in exchange for patient referrals. These broad and confusing laws can trap the unwary physician looking to expand his practice by entering into relationships with potential referral sources or branch out in other medical services. A lawyer can help a doctor avoid these traps.

Doctors abhor lawsuits, and for good reason. Lawsuits consume time, energy, and money better spent on patients, they last forever, and their results seldom satisfy anyone. Which is why doctors, like other businesses and individuals, increasingly turn to arbitration to resolve disputes.

What first comes to mind when you think of the assets of a medical practice? Certainly the expertise of the physicians, other care givers, and staff. Practice leaders generally know, too, that this “human capital” can be protected with shareholder agreements and employment agreements. Patient and vendor relationships and the practice’s goodwill in the community readily come to mind as well. In your quick mental balance sheet, you may not immediately think of intellectual property. You should.

A physician driving down the highway comes upon a car wreck with an injured driver in need of immediate medical aid. Should the physician stop and help, or pass by the other side?