Creating Specialty Clinic for Hospital Patients

January 1, 1900

Issue
A small physician group was interested in expanding its specialty medical service to the residents of a small rural community. Although the community was near a local hospital, the hospital did not currently provide this specialty service and residents were forced to travel far distances to see a qualified provider or to forego treatment altogether.

Our Approach
The physician group approached the local hospital and proposed the establishment of a jointly-owned specialty clinic to provide these services for the benefit of the community. The hospital and the group would share roles in the development, operation, and management of the clinic, and the clinic would be conveniently located on the hospital’s campus in space that was currently being under-utilized by the hospital. Patients of the local community would benefit from receiving specialty care and treatment that had previously been unavailable to them. The hospital and group would each benefit from the other’s expertise and resources and would work together to efficiently provide a necessary service to their patients.

The group worked with RCO Law to negotiate and develop all necessary agreements for the clinic, including operating and management agreements, professional service agreements, space and equipment leases, and related documents. In addition, RCO Law helped the group to successfully navigate the numerous regulatory obstacles facing providers in today’s health care industry, including physician self-referral regulations (“Stark law”), the federal anti-kickback statute, Medicare provider-based rules, HIPAA provisions, and billing and collection procedures.

Results
Through careful planning, drafting, and implementation, RCO Law provided the legal guidance necessary for the clinic’s success.

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