How Recent Federal Law Developments Affect Business Models for Collaborative Oncology Care

23 March 2009 Publication
Authors: Michael L. Blau

Oncology Issues

The federal agencies responsible for regulating financial relationships among oncology providers had a busy year in 2008. In the past year, the Centers for Medicare & Medicaid Services (CMS) issued new Stark Law rules, and the Office of the Inspector General (OIG) issued Advisory Opinion 08-10, which may adversely impact certain collaborative ventures among oncology providers. In 2008, CMS also adopted new anti-mark-up rules and new standards for independent diagnostic testing facilities (IDTFs, which are Medicare-certified imaging facilities) that may also adversely affect certain collaborative arrangements among oncology providers and suppliers. These regulatory changes will affect certain:

  • Space and equipment leases
  • Block lease and shared diagnostic testing arrangements
  • Investment interests in certain turn-key development or management company joint ventures, and so-called “under arrangements” transactions
  • Turn-key management service transactions.

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