Sponsored by Sullivan Cotter and Associates
At the 2011 Annual Meeting
Title: Joint Operating and Management Agreements: The Nuts and Bolts
Description:
Joint operating agreements customarily involve the creation of a jointly governed entity created by two or more hospitals to operate the hospitals. Title to the hospitals’ respective assets remains with each individual hospital, but revenues and future capital expenditures are shared and operating and strategic decisions are made jointly through the new entity. A management agreement typically involves a hospital entering into an agreement with another provider or a management company for the outsourcing of management services. Customarily, many “back-office” functions, such as human resources and billing, are turned over to the management company, but all clinical services continue to be provided and entirely administered by the hospital. The objective of both agreements is usually to reduce costs through the use of shared efficiencies and most cost-effective methods of operating the hospitals.
During this luncheon presentation, the panelists will:
- Highlight key structural components of both types of agreements;
- Explore the regulatory concerns raised by both models including, but not limited to the Federal Anti-Kickback Statute and the Stark law; and
- Identify the federal tax issues involved, specifically, those under IRC § 501(c)(3).
Presenters:
Moderator: