A Buy-Sell Agreement is an essential document for medical professionals in a partnership or corporation. It protects the practice’s continuity in the event of a partner’s departure or other unforeseen circumstances.
Addressing Key Events
The agreement should specify what happens in cases of death, disability, or retirement of a partner. Without it, disputes can arise that may disrupt the practice.
Valuation of Shares
Defining how shares will be valued is critical. Whether through an appraisal or a predetermined formula, clarity is essential.
Funding the Agreement
Life insurance policies are often used to fund Buy-Sell Agreements, ensuring the practice can afford to buy out a departing partner’s shares.
At the Law Office of Kris Mukherji, we craft comprehensive Buy-Sell Agreements tailored to the needs of medical professionals. Contact us at Kris@kmsdlawoffice.com to get started.
Understanding Stark Law and Anti-Kickback Regulations for Medical Corporations
Stark Law and Anti-Kickback Statutes (AKS) are critical federal regulations that impact medical corporations in California. Non-compliance with these laws can result in severe penalties, including fines, exclusion from federal healthcare programs, and even criminal charges.
What is Stark Law?
Stark Law prohibits physicians from referring patients for certain designated health services (DHS) to entities with which they have a financial relationship, unless an exception applies. For example, a physician cannot refer a patient for imaging services to a facility they own unless the arrangement meets specific criteria.
What is the Anti-Kickback Statute?
The AKS prohibits offering, paying, soliciting, or receiving any form of remuneration to induce referrals for services reimbursed by federal healthcare programs. This statute is broader than Stark Law and applies to all healthcare providers and entities.
Compliance Strategies
- Conduct Regular Audits: Ensure all financial relationships comply with Stark Law and AKS.
- Train Staff: Educate employees about these laws and the consequences of violations.
- Draft Clear Agreements: Work with legal experts to draft contracts that meet legal requirements.
The Law Office of Kris Mukherji helps medical corporations navigate these complex regulations and implement compliance programs. Contact the Law Office of Kris Mukherji at www.kmsdlawoffice.com to learn how we can assist with your legal needs.