Tax Issues in Issuance or Repurchase of Equity in Physician and Other Practice Groups

Originally published in Healthcare Michigan, Volume 40,  No. 9 Adverse tax issues can arise for physicians and other professional practice groups interested in issuing equity to attract and retain junior physicians.  If equity is issued at below fair market value, the new equity owner will incur significant federal income tax consequences on issuance.  If the new …

Physician Recruitment: How Hospitals Can Comply With Stark Law While Recruiting Top Talent

Originally published in Healthcare Michigan, Volume 40,  No. 8 Hospitals play a vital role in ensuring the well-being of communities by recruiting and employing skilled physicians. However, physician recruitment in compliance with the Stark Law can be a complex task for hospital administrators, especially as hospitals and medical practices face an average 7.6% annual physician …

False Claims Act “Knowledge” Is a Subjective Standard

The Federal False Claims Act (“FCA”) allows private parties to bring lawsuits in the name of the federal government against defendants who allegedly “knowingly” present a false claim to the government for payment.  The question for courts has been what standard should be applied to evaluate a defendant’s “knowledge.”  The US Supreme Court recently clarified …

Supreme Court Issues Ruling on the Requisite Intent for False Claims Act Defendants

Originally published in Healthcare Michigan, Volume 40,  No. 7 A recent decision by the Supreme Court clarified the required intent for a defendant to be held liable under the False Claims Act.  According to the Court, the FCA’s scienter requirement refers to a defendant’s knowledge and subjective beliefs – not what an objectively reasonable person might have known …

Ensuring Data Privacy in Genomic Medicine: Legal Challenges and Opportunities

Originally published in Healthcare Michigan, Volume 40,  No. 6 Introduction As the intersection of technology and healthcare becomes increasingly nuanced, the field of genomic medicine is rapidly evolving and expanding. Genomic medicine, or personalized medicine focusing on the data holding information on base sequence in an individual’s genome, uses an individual’s genetic information to guide healthcare …

Care and Feeding of Practice Entities to Avoid Federal Tax Issues

Originally published in Healthcare Michigan, Volume 40,  No. 5 In prior articles in this publication, this author addressed a federal tax issue faced by practice entities- the possible attack by the Internal Revenue Service (IRS) on a common practice of incorporated medical and other types of practice groups.  By use of the “zero out” technique to …

DEA Reverses Course and Extends Telehealth Prescriptions of Controlled Substances

Reversing previously proposed rules, the DEA recently issued new guidance allowing the continued use of telehealth when prescribing controlled substances following the end of the Covid-19 public health emergency (“PHE”). Waivers of the requirement for in-person encounters that were in place during the PHE will remain in effect for practitioner-patient telehealth relationships established as of …

Federal Court Blocks Enforcement of Some ACA Preventive Health Service Requirements: What Plan Sponsors Should Consider

In a March 2023 ruling, a Texas federal district court vacated all actions taken by the Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (collectively, the “Departments”) to implement or enforce certain preventive care requirements under the Patient Protection and Affordable Care Act (“ACA”). Recently, the Departments released initial FAQ guidance addressing …

Clearing the J-1 Home Residency Hurdle: Four Ways to Waive the Home-Residence Requirement

Originally published in Healthcare Michigan, Volume 40, No.  4 J-1 status is a favorite for foreign nationals attending medical resident training programs in the United States. While there are many advantages to the J-1 visa category, one major obstacle remains for J-1 physicians who wish to continue working in the United States—the home residence requirement. Because …

Sixth Circuit Defines False Claims Standards

The Federal False Claims Act (“FCA”) imposes civil liability for presenting a false claim to the government for payment. The Federal Anti-Kickback Statue (“AKS”) prohibits medical providers from making referrals in return for “remuneration.”  In a recent decision by the Sixth Court of Appeals, the Court found that a hospital’s decision not to hire an …