Hospital/Physicians Joint Ventures

Hospitals and other health care providers are increasingly addressing opportunities to form partnerships with physicians and other health care providers. The issues raised by these health care ventures are significant and complex, involving difficult business, legal and health care regulatory issues, such as Stark and Anti-Kickback compliance. Where the hospital is tax exempt, the Internal Revenue Service has increased its scrutiny of transactions and raised the bar for tax exempt participation. Local regulatory issues, such as state law restrictions and certificate of need processes, call for particular know-how and credibility involving local rules, interpretations and administrative officials. These partnerships or joint ventures typically focus on a single specialty, facility, disease or ancillary service in order to produce more competitive service, increase efficiencies and margins and enhance the quality of care. Recent strategic joint ventures have involved major hospital outpatient services and acute care inpatient hospital services, such as "heart hospitals" and oncology carve-outs. The attorneys in the Health Law Department have extensive experience in dealing with the complex business and regulatory issues these types of ventures present.

Representative Matters 

  • Joint Operating Company between nonprofit hospitals. 
  • Tax exempt hospital system client entered into joint venture with physicians in the community to own and operate a new ambulatory surgery center. 
  • Major academic medical center joint ventured with cardiology group with respect to on-campus and off-campus outpatient catheterization services and established professional services relationship involving cardiology services. 
  • Publicly traded hospital ownership companies and local physicians' joint venture to construct, own and operate new whole hospital facility. 
  • Governmental hospital system clients joint venture with medical staff physicians to form health maintenance organization (HMO) serving the regional community. 
  • Publicly traded single specialty company entered into multiple joint ventures with local physicians to create refractive surgery facility ventures, bringing updated equipment and technology to the communities. 
  • Taxable single specialty provider entered into multiple joint ventures with physicians involving outpatient dialysis treatment facilities. 
  • Physician practice management company, publicly traded hospital management company and physician group joint venture to own and operate outpatient surgery facility.
  • Exempt hospital, through its exempt affiliate, entered into numerous ancillary service joint ventures involving imaging, urgent care and surgery services. 
  • Governmental hospital entered into taxable joint ventures with physicians involving occupational medicine and managed care alliances.