Alternative Delivery Models
Kutak Rock represents, both for profit and not-for-profit, managed care companies and integrated health delivery systems across the country assisting in their efforts to navigate the healthcare industry’s complex business, legal and reimbursement regulatory needs.
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.
Kutak Rock’s national healthcare lawyers are an established part of the client’s team to assist the healthcare client of all provider types to restructure a financially stagnant practice operation, to either partner or redesign their delivery of services more efficiently to assure compliance with payor requirements. This includes advising on organizational structures where there are areas of legal risk such as the 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.