1206(l) Medical Foundations
The following are a representative sampling of transactions that the firm is handling or has handled in the past several years.
- We are advising a children’s hospital on the development of a 1206(l) medical foundation, including capitalization and cash flow, tax-exemption, Medicare and Medi-Cal provider enrollment, documentation, governance, physician compensation, compliance, etc.
- We are advising a 300+ bed general acute care hospital starting up a new 1206(l) medical foundation on a variety of formation, compliance and operational issues, including developing an outline of key issues, considerations and development steps in creating and implementing a medical foundation.
- We represent a hospital and affiliated medical foundation in negotiating and structuring the physician compensation under the Professional Services Agreement, including productivity and incentive performance metrics, and related compliance issues.
- We represented a 61-shareholder multi-specialty medical group in Northern California in the sale of substantially all of its assets to a hospital-affiliated 1206(l) medical foundation, and the related transaction in which the shareholders become employed by the medical foundation’s affiliated medical group.
- We represented a very large multi-specialty medical group in Southern California in the sale of substantially all of its assets to a newly formed 1206(l) medical foundation, and the related transaction in which the physicians become employed by the medical foundation’s affiliated medical group.
- We are representing a hospital and affiliated medical foundation in Northern California in connection with the acquisition of multiple small and mid-sized specialty medical groups.
- We were engaged to jointly represent a hospital and medical foundation, on the one hand, and a medical group, on the other hand, in developing a proton beam therapy center, and in subsequent financial and operational matters relating to the proton center.
- We have recently advised a health system on various issues concerning its 1206(l) medical foundation, including issues relating to conflicts of interest, tax-exempt status, the Stark law, and the anti-kickback statute.
- We have advised multiple clients on the unique credentialing, peer review and quality assurance committee issues faced by the interplay of the medical staffs of the hospital, the medical foundation and their affiliated medical groups, and have developed detailed policies and procedures for navigating these issues.
- We have advised a number of health systems and medical foundations on issues relating to the structure of their boards of directors, conflicts of interest, and tax-exempt organization issues.