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Posted by: Robert Markette OIG posted some recent administrative enforcement actions to its website today. There is a Stark case mentioned here in which the defendant paid a $713,623 fine to resolve allegations that it had subleased space in its hospital to physicians at below market rates. In once instance, OIG alleged that a physician did not pay rent for FIVE YEARS. Oops. In addition to the penalty, the defendant agreed to enter into a cerification of compliance agreement. It is also of interest that the defendant self disclosed the conduct, perhaps a reason why they were not excluded from Medicare. Although this case involves a hospital, home health providers, and any other provider should take this as a reminder. If you are subleasing office space from or to a referral source, be sure the arrangement fits squarely into the exception. One key for the eception is that the rental is fair market value. Check the rent you are charging against similar space to make sure that it is fair market value. The rent for the space should be as if it was in an arms length transaction between two parties. In case you weren't sure, the case also makes clear that not charging rent, or charging and not collecting the rent, is NOT fair market value. |
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