Federal Law Update: Ancillary Joint Ventures After ... - Honigman

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Management Contracts • Select Mgr. unrelated to for-profit partners • Charity care/Medicaid: minimum standards and a factor in any incentive compensation formula • Require Mgr. to follow community benefit goals • Cap percentage compensation (still Fraud & Abuse risk) • Reasonable term and termination provisions: – reasonable initial term (follow Rev. Proc. 97-13, term is a function of compensation methodology) – mutual agreement for renewal – terminable at least for cause without terminating JV – termination rights exercisable by nonprofit alone
Community Benefit •New services • Substantial charity care, Medicaid, Medicare • Remedy shortage and other access problems • Communicate charity care policy to community • General oversight by nonprofit’s community board • CON reflecting community need
Page 1 and 2: Federal Law Update: Ancillary Joint
Page 3 and 4: Areas not addressed • Non-tax con
Page 5 and 6: Audit Activity • Ongoing joint ve
Page 7 and 8: Defining “Insiders” • No Free
Page 9 and 10: TBOR2 Basics • Two-tier tax on di
Page 11 and 12: Ancillary Joint Ventures •Two-pro
Page 13 and 14: Typical Whole Hospital Joint Ventur
Page 15 and 16: Ancillary Services Joint Venture (H
Page 17 and 18: Redlands Community Hospital Foundat
Page 19 and 20: Redlands: Why Not Exempt? • Sole
Page 21 and 22: Redlands: Why Not Exempt? • RSS w
Page 23: Expanded Control Test • Initiatio
Page 27 and 28: Exemption Impact of 50/50 Ventures
Page 29 and 30: Other Structuring Options • Taxab
Page 31: Non-tax Considerations • Antifrau

Federal Law Update: Ancillary Joint Ventures After ... - Honigman

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