Describe the “single legal entity” requirement under the Group Practice Definition. What is the purpose of this requirement?

Describe the “single legal entity” requirement under the Group Practice Definition. What is the purpose of this
requirement?

TQ 5.2: Dr. Trump is a solo practitioner internist who also owns a large amount of real estate. Dr. Trump’s full-time medical office is located at 123 Park Avenue, Suite A. He is now looking to open up a clinical laboratory and is considering the following locations: a) in the office building across the street from 123 Park Avenue; b) Suite B in the 123 Park Avenue location, which is currently vacant; c) in a mobile medical van owned by Dr. Trump; and d) in Suite C of 123 Park Avenue which would be shared with Labs R’ US, LLC, the existing tenant who is also a clinical laboratory. Please advise Dr. Trump as to whether these are permissible options under the In-Office Ancillary Services Exception.

TQ 5.3: North Pole General Hospital is never lacking in holiday cheer. The hospital would like to throw a lavish holiday party at the Holly Jolly Country Club and invite all of its employees, as well as the medical staff. The cost of the party is estimated to be $10,000. The hospital will give away a gift basket to all attendees valued at $50. The hospital has about 400 employees and 200 community physicians on its staff. You can assume that this event will be well attended. Does this proposal comply with the Stark Law?

TQ 5.4: What was CMS’s conclusion regarding the practice restriction in AO- 2011-01? What factors did CMS consider in reaching this conclusion?

DQ 5.1: Recall the compensation arrangement that was issue in the Halifax Hospital case. Assume that the oncologists
implemented the exact same compensation methodology in their private practice. Do you think that a court would find
that the arrangement violated Stark? From the perspective of public policy do you find it rational that an arrangement
could be permissible in a private practice setting but not in a hospital setting?

DQ 5.2: Hospitals often place ads in magazines or billboards which highlight one or more physicians who are affiliated with the hospital. Do you think that these advertisements pose a problem under the Stark Law? What would you advise the hospital regarding some do’s and don’ts for advertising physician services without running afoul of the Stark Law?