Lawrence Vernaglia Discusses OIG Approval of Physician Bonuses Based on ASC Revenue
Foley & Lardner LLP partner Lawrence Vernaglia is quoted in the article, “OIG Approves Employed Physician Bonuses Based on Revenue From ASCs,” in the Report on Medicare Compliance, publish by the Health Care Compliance Association.
Vernaglia, who is co-chair of Foley’s Providers of Health Care Services area of focus within the firm’s Health Care & Life Sciences Sector, discussed the recent approval from the U.S. Department of Health and Human Services Office of Inspector General (OIG) of a proposal to give physician employees a bonus based on the profits they generate from certain procedures performed at ambulatory surgery centers (ASCs) owned by their employer. OIG approved the bonus in an advisory opinion because it is protected by a statutory exception to the Anti-Kickback Statute (AKS) and a regulatory safe harbor that confers AKS immunity.
Vernaglia noted that the employment exception is very broad. “If you can fit within it, you can do really creative things,” he said.
“This is only AKS and not Stark,” he added. “Don’t draw this out and apply it to MRIs or lab services,” for example, because they are designated health services.