Physician Integration Transactions

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Kutak Rock’s national health care lawyers regularly assist both hospitals and physician practices in developing new physician-clinic arrangements and in restructuring financially stagnant physician-clinic arrangements to increase their profitability. Our team also assists clients in structuring such arrangements to address areas of legal risk such as widely varying state regulation of the corporate practice of medicine. We have extensive experience in structuring purchases of physician practices in compliance with the federal Anti-Kickback Statute and the Stark Law.

Kutak Rock has developed proprietary “Virtual Private Practice” compensation models, in which physicians sell their practice’s assets to institutional purchasers and are compensated based on productivity. This arrangement allows physicians to retain ownership and a measure of autonomy over their practices, billing and collections while permitting institutional purchasers to align the physicians’ compensation incentives with the institutions’ goals and to provide resources the physicians themselves could not afford. The IRS has favorably viewed our Virtual Private Practice models in a number of its determination letters.

Kutak Rock has created “Physician Enterprise” structures in which physicians sell their practice assets and contract as Management Service Organizations. We also assist physician practices and hospital purchasers in more traditional “Clinic Model” and “Hospital-Based Group Practice” arrangements.