The stipulations in the federal Anti-Kickback Statue and Stark Law that healthcare providers cannot exchange remuneration in return for referrals of federal healthcare program business has extensive consequences in the world of healthcare valuation. Indeed, "healthcare providers [must] be careful to avoid ascribing value to prior or anticipated referrals when structuring transactions involving business ventures providing services to beneficiaries of federal healthcare programs."
Pinna and Jenkins explain the challenges these regulations pose for appraisers. Through an examination of these laws, their histories, and the obstacle they pose to appraisers, The Anti-Kickback Statute and Stark Law: Avoiding Valuation of Referrals discusses where to find and how to avoid potential landmines.This briefing is extracted from the transcript of a 90-minute webinar from April 2011.
James M. Pinna: Advises healthcare clients on matters involving regulatory compliance (including fraud and abuse, licensure, health record privacy and reimbursement issues), structuring of business transactions, corporate governance and tax-exempt status issues. He is a member of his firms Health Care Reform Initiative and Pro Bono Committee in Richmond. Prior to law school, James served as Business Development Analyst for National Nephrology Associates, a privately held dialysis company in Nashville, TN, where he was responsible for market research, financial analysis and due diligence on the acquisition of 28 dialysis clinics with over $90MM in net revenues.
Matthew D. Jenkins: As the head of his firm's health care practice, Matt devotes his practice to the firm's leading health care clients and coordinates the delivery of comprehensive legal services to such clients across the firm's various practices. Matthew currently chairs the ABA Health Law Section's Task Force on Accountable Care Organizations. He has chaired the ABA Health Law Section's Business Transactions Interest Group and the Health Law Section of the Virginia State Bar. Matt is a member of his firm's Health Reform Initiative.