Today's Practice: Changing the Business of Medicine

Physician-Syndicated “MSO Models” 4. Documentation that the MSO is not engaged in interstate commerce. 5. Documentation of concrete actions that demonstrate the company’s intent to comply with state and federal law. 6. Documentation that the affiliated pharmacy, lab etc. has passed self-audits, is current with its compliance requirements, and is current with its CLIA and similar licenses (for pharmacies: request a DEA Diversion Control analysis). 7. Documentation in form of a written statement that the affiliated pharmacy, lab etc. has never once processed a sample, script, or referral that has a federal payor (as primary or secondary coverage) to ensure that service fees paid to the MSO and distributed to the physicians have not, directly or indirectly, been derived from Medicare, Tricare, Medicaid, federal workers’ compensation, or other federal healthcare programs. 8. Documentation in form of a certification that the MSO and the affiliated pharmacy, lab etc. are represented by different law firms to ensure that the non-negotiable compliance requirement of an arm’s length transaction is met. Oberheiden | Elliott | Byrd | Sauter WHAT IS YOUR EXPOSURE LEVEL? Physicians should take precautions to not become targets of FBI or medical board investigations. If you are a physician invested into a Physician-Syndicated MSO, you should contact an experienced healthcare fraud defense attorney for a free and confidential risk assessment. meet the authors: DR. NICK OBERHEIDEN ESQ. Managing Partner Healthcare Fraud Defense Attorney MICHAEL C. ELLIOTT, ESQ. Former Federal Prosecutor Department of Justice Former Chief, Healthcare Fraud, U.S. Attorney’s Office LYNETTE S. BYRD, ESQ. 9. Documentation of all shareholder meetings conducted according to the MSO company agreement, including minutes and attendees. Former Federal Prosecutor Department of Justice Civil Healthcare Investigations 10. Documentation in form of a statement from the Chief Compliance Officer of the MSO that certifies the entirely of the company’s compliance efforts. 11. Documentation in form of a written certification that the affiliated pharmacy, laboratory, blood testing, implant company etc. has never once paid commissions to marketers for bringing in federal payor business. MINDY M. SAUTER ESQ. Former Federal Prosecutor Department of Justice Former Team Leader Medicare Fraud Strike Force TODAY’S PRA C T I C E: C HA NGI NG T HE BUS I NES S OF M EDI CINE 34

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