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Medical University Examines its Relationships with Faculty Plan

Industry: Health Care

Key Facts

  • Representation of one of the oldest universities in the country and its associated medical school
  • Analyzed the institution’s relationships with its affiliated academic faculty
  • Providing counsel in an ongoing matter

The Situation

Mintz is assisting a university and its medical school with analyzing the relationships with its affiliated academic faculty practice plan and teaching hospital. The analysis entails examining strategic growth objectives, alternative governance relationships, and alternative strategic partners, drafting a joint specialty-line service agreement, and advising on the application of certain health care fraud and abuse laws, including the Stark Law and its exception for arrangements among the entities constituting an academic medical center.

The Approach

The university does not have a direct governance relationship with the faculty practice plan and only holds a minority interest in the ownership of its affiliated teaching hospital. Mintz has been drafting a joint specialty-line service agreement as well as counseling on ways to restructure the relationships among the three entities, pursue common strategic objectives, or seek alternative strategic partners — and assure that the contractual arrangements among the entities comply with the Stark Law, which penalizes certain financial relationships between physicians and hospitals, including teaching hospitals.

The Outcome

This matter is still ongoing, and Mintz is assisting the university with reviewing and potentially restructuring its relationship with its academic faculty practice plan, along with assisting in the formation of a joint arrangement among the university, the faculty practice plan, and the teaching hospital for joint funding and operation of a clinical service line.