Merging Practices. Including Existing Assets And ASCs. Integrated & Non-Integrated Organizational Models JOSEPH F. O LIVO JR C H A RLOTTE, N.C.

Similar documents
Super Groups: Legal Issues Associated with the Formation of Large Multi-site Medical Groups

Approved Models to Align Incentives between Hospitals and their Physicians

Practice Mergers: Traditional and Clinic without Walls. Financial Interest Disclosure. Who We Are 4/19/2017

GETTING IT TOGETHER: INTEGRATION OPTIONS FOR ORTHOPEDIC SURGEONS BY FRANK GAMMA, MBA, FACMPE, and DOUGLAS FREE

Fundamentals of Healthcare Valuation

Compensation Paid by Healthcare Providers

Law Department Policy No. L-8. Title:

The Physician-Owned Management Services Organization

Fair Market Value for Pathology Practices. Jason L. Ruchaber, CFA, ASA Partner

Surviving The Storm 10/6/2015. Physicians Are Feeling the Pain

FAST BREAK : STARK LESSONS FOR PHYSICIAN PRACTICE ACQUISITIONS Albert Shay, Eric Knickrehm, and Jake Harper August 23, 2018

Ophthalmology Practice Mergers, Acquisitions & Divestitures. Overview. Motivations. Introductions Big Question:

To Merge or Not to Merge: The Business and Legal Issues When Radiology Groups Combine with Other Groups

Budgeting Accurate Cost of Care at Community Health Network

How the Affordable Care Act Is Changing Healthcare What You Can Do to Thrive in the New Environment

Health Insurance Reimbursement: The Good, The Bad and The Ugly. By Terry Bauer, CEO, Specialdocs Consultants

Merging Up: A Manual of Self-Defense. Financial Interest Disclosure. Who We Are 4/25/2016. Daniel M. Bernick, Esquire, MBA*

Prepared for: Healthcare Merger & Acquisition Due Diligence and Financial Reporting

10/10/2012. Goals. The Exciting Future of Practice Management. Practice Management. Practice Management. The Future. Practice Management

Valuing Physician Practice Ancillaries Overcoming Challenges for Counsel

Selling Your Practice: Perspectives from the Investment Banker and the Private Equity Firm

Hancock, Daniel & Johnson, P.C., P.O. Box 72050, Richmond, VA , ,

Responding to Reduced Reimbursement

Compliance in Physician Employment and Hospital- Physician Integration

Auditing Physician Arrangements

Health Care Reform in the United States

Building the Healthcare System of the Future O R A C L E W H I T E P A P E R F E B R U A R Y

Physician Relationship Compliance Issues

Physician Relationship Compliance Issues. Charles Oppenheim Hooper, Lundy & Bookman, PC

PHYSICIAN ALIGNMENT: LEGAL AND FAIR MARKET VALUE COMPLIANCE

Community Health Systems to sell 25 Hospitals as net loss swells to $1.7 billion in Source: Healthcare Drive February 20, 2017

The Challenge of Implementing Interoperable Electronic Medical Records

HENRY M. SEYBOLD, JR., CPA, MBA 529 S. Summit Street (C)

AHLA. U. Physician Relationship Audit Workshop: A Practical Guide to Auditing Physician Relationships and Addressing Identified Issues

INVESTOR PRESENTATION MAY 2017

Physician Lease Arrangements: New Rules

Clinically Integrated Networks; The PHOs of the Twenty-First Century?

Anti-Kickback Statute Jess Smith

FAST BREAK : HEALTHCARE BLOCKCHAIN Jonelle Saunders and Jake Harper March 28, Morgan, Lewis & Bockius LLP

Key Valuation Issues for Healthcare Leadership

Fair Market Value Implications for Sleep Transactions National Sleep Foundation

Physician Care: Physician Compensation. Presented by Albert R. Riviezzo, Esq. Fox Rothschild LLP Exton, PA

Fundamentals of Healthcare Valuation for Health Lawyers and Compliance Officers

ADVANTAGE CARE NETWORK, INC.

VALUATIONS AND TRANSACTION ENVIRONMENT IN ORTHOPEDICS

Sleaze, Graft and Corruption in Surgical Pathology Version 3.0

AHLA. X. Fundamentals of Health Care Valuation for Health Lawyers and Compliance Officers

{Healthcare industry update.} Current Trends in Mergers & Acquisitions HFMA Kentucky Chapter January 23, 2014

North Carolina State Medical Society Meeting

PROVIDER MANUAL. Revised January Page 1

MANAGEMENT S DISCUSSION OF FINANCIAL AND OPERATING PERFORMANCE

WHAT EVERY NEW PRACTITIONER SHOULD CONSIDER

Configuration of Network and Financial Management Systems to Support Multiple Value Based Reimbursement Models

PHYSICIAN INVESTMENT COMPLIANCE

The Importance of Insurance Verification, Fee Transparency and Bundling. Helen Lowenwirth, MBA, CASC Administrator East Side Endoscopy, LLC

How to Determine Commercial Reasonableness of Hospital- Physician Compensation Arrangements

UNDERSTANDING AND WORKING WITH THE LATEST STARK LAW DEVELOPMENTS

CRH Medical Corporation Canada Place Vancouver, BC V6C 3E1. Year Ended December 31, 2017 Financial Report

Avoiding an October Surprise: Strategies for Complying with the New Stark Law Rules

10 Best Payer Contracting Practices for Presented By: Mr. Steve Selbst, CEO Healthcents Inc. November 7, 2018

Introduction & Overview

Completing a Paper CMS-1500 (02-12) Form

Mayo Clinic. Unaudited Condensed Consolidated Financial Statements Quarter Ended June 30, 2018

Non-Profit/For-Profit Joint Ventures: Structuring & Valuing the Deal

Capital Funding Buzz Survey November 2012 Supported by:

PRIVATE EQUITY INVESTMENT IN MEDICAL PRACTICES: LEGAL ISSUES AFFECTING MEDICAL PRACTICES

OPTIONS FOR CONSOLIDATION AND CONTINUED INDEPENDENCE

PROVIDER AFFILIATIONS SHORT

Vendor Ratings, VDR Michael Davis, Cynthia Burghard, Thomas Handler, M.D., Barry Hieb, M.D., Jim Klein, Joanne Galimi

Mayo Clinic. Unaudited Condensed Consolidated Financial Statements Quarter Ended March 31, 2018

Summary of Presentation

Hospitals and Physician Practice Losses Do Not Accept it at Face Value


Antitrust and ACOs: What the Antitrust Enforcement Agencies Have in Store for ACOs Tuesday, April 26, :00-2:30 pm Eastern

The Fundamentals of Reimbursement

CFA Society of Houston Luncheon. February 22, 2017

Hospital Joint Ventures (JVs): Trends and Post-Transaction Contractual Considerations

Stark Law Contracting Tips and Problem-Solving May 14, 2015

WAYS AND COSTS TO ALIGN: THE VALUATION OF PHYSICIANS, HOSPITALS, ASCS AND OTHER HEALTHCARE PROVIDERS

Steps To Take When Closing Your Practice

Antitrust Rules for Provider Collaboration: How to Form and Operate a Network of Competing Providers

How to Navigate a FMV Opinion for Transactions & Compensation Arrangements June 6, 2017

Fundamentals of Healthcare Valuation for Health Lawyers and Compliance Officers

Legislative & Regulatory Issues Facing Pathology & Laboratory Medicine. Ronald L. Weiss, MD

This document is dated as of December 16, 2016

HCCA Compliance Institute Dallas, Texas Session 401- Monday, April 19, 2010

Physician Contracting An Overview of Legal Policy No. 9

CIN FAQ. FREQUENTLY ASKED Questions about Clinically Integrated Networks from The Care Centered Collaborative

ORGANIZATIONAL POLICY. SUBJECT: Financial Assistance NUMBER: REVISED: EFF. DATE: 10/01/2016 PAGE: 1 of 4

QUICK HITTING SURVEY: The Academy. Corporate Cost Allocation. Executive Summary

BUSINESS STRATEGIES FOR TODAY & TOMORROW. My Background. Changes in Last 30 Years. Future of Healthcare in U.S. New Era of Medicine 3/29/2015

MANAGING HOSPITAL/PHYSICIAN FINANCIAL RELATIONSHIPS

Population-Based Healthcare: Structural Models and Options

Provider Networks. March 3, 2016 Gabriel Hamilton

Budgeting Basics 101

10/29/2013. Are you ready for 2014 and beyond? Healthcare Outlook Challenges Opportunities MANN, URRUTIA, NELSON, CPAS & ASSOCIATES, LLP

FAST BREAK : HOLIDAY GIFTS Jake Harper December 18, Morgan, Lewis & Bockius LLP

Robert Resnik MD MBA

The Evolution of the Strategic CFO Eric Brandt

Investment and Consolidation within Dermatology

Transcription:

Merging Practices Including Existing Assets And ASCs Integrated & Non-Integrated Organizational Models JOSEPH F. O LIVO JR PRESIDENT, PMC C H A RLOTTE, N.C.

A Introductory Primer of The Practice Affiliation Process and the Relationship with an ASC

The Problem with Health Care in the U.S.

U.S. Health Care Solutions Improved Performance Value Reduced Cost Improved Patient Experience Regionalization and Growth Innovative Health Care Organizational Models

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change. Charles Darwin

Adapting to Change Through Innovative Organizational Models Integration (Merger) Care Center/Profit Center Clinically Integrated Network ( CIN )

Professional Limited Liability Company (PLLC) Member Managed Model Physician Owners Provider Contracts Personal Services Employment Agreement. Payors NEWCO, PLLC Reimbursement From Payors Billing, Collection, Contracting Ancillary Services Lab--Pathology Anesthesia- Radiation Central Business Office (CBO) Master Practice Use Agreement Membership Interest in return for initial contribution Member Practice A (Division A) $$$ $$$ $$$ Management Contract Member Member Practice B Practice C Division (B) (Division C) Excluded from Transaction ASCs

Merger Structure Features Professional practices are members of the new entity ASCs and ancillary revenue projects (except in-office exception programs) not included in merger and new entity New entity single Tax ID Payor contracts assigned from practices to new entity Assets licensed from legacy practices to new entity Physicians must be re-credentialed under new Tax ID Compensation of physicians can be separately determined by practice group Revenue and costs allocated to divisions Decision making is entirely flexible

ASC Structure Features ASCs/Endoscopy Centers outside of transaction Staff of new entity leased to ASC (where possible) New entity manages ASC/management service agreement New entity bills for clinical services Evaluation of Affiliated Service Groups If affiliated, treated as single employer for retirement Divisional model Revenue and costs assigned to division with ASC relationship Single Ownership of all ASCs can be transitioned in future

Merger Regulatory Considerations Stark II regulations require that the merged group meet the unified business test to qualify as a group practice. Three requirements to meet this unified business test Centralized decision-making by a Board of Managers Consolidated billing, accounting and financial reporting Designated Health Services profits (lab/imaging) must be allocated evenly or by non DHS formula

An Alternative To The Practice Integration (Merger) Model No Merger Merger

Clinically Integrated Network (CIN)

What Is A Clinically Integrated Network (CIN) A CIN is defined as a health network or provider system working together, using proven protocols and measures, to improve patient care, decrease cost and demonstrate value to the market.

Clinically Integrated Network (CIN) Requirements And Objectives To Be Considered a CIN by the FTC, It Must: Increase Quality Reduce Cost and Waste Sustain Independence for Physicians Effectively Manage Utilization With a Healthcare Population Solution to State Wide and Regional Contracts

Why Develop or Join a CIN? Collective bargaining by physicians that compete with each other is considered anti-competitive. Prohibited except where they are financially or clinically integrated. Everyone needs to be in the same boat In a CIN, independent physicians can negotiate collectively with payers on reimbursement arrangements without merging practices

Participating Provider Agreement Operating Agreement Clinically Integrated Network MSO Services Protocol Development Standardization Contract Negotiations Practice 1 Practice 2 Practice 3 Member Member Member Quality Monitoring Indicators Data Trend Analysis No Change in ASC Relationship CIN is a Non Integrated Practice Model Based upon quality and cost physicians can contract as a unit

Merger? CIN? What is the Best Solution for Practice and the ASC?

It Must Meet Two Criteria to Succeed Today and Tomorrow in Health Care Change Adaptation

Merging Practices Integrating Merged Assets TO DD C. SHAFER V ICE PRESIDENT, IS N ASHVILLE, TN

Integration Makes Sense and Cents

The U.S. Health Care Solution Improved Performance Value Reduced Cost Improved Patient Experience Regionalization and Growth Innovative Health Care Organizational Models Mergers Clinically Integrated Networks

Historically management companies buy into a single part of the patient experience, breaking the relationship.

Why integrate? Clinic Pathology Patient Anesthesia ASC

Allows you to leverage technology to create efficiencies Creates scalability Support & maintain architecture Single point of resolution Intimate knowledge and relationship You can throw people at an opportunity, throw money at an opportunity, or you can get smarter.

Shared Information Registration & Scheduling HR & Payroll Procedure Note & H&P Quality Reporting Billing Components

EMR Surgical Anesthesia Pathology Note Note? Reporting and Quality Initiatives

Reporting and Quality Initiatives Interface Pathology