With hospitals maintaining their lowest operating margins in over a decade, and with one-third of them maintaining negative operating profits, joint venturing with one another and physician groups is a fiscal necessity. However, these ventures are fraught with legal risks. Hospital joint ventures implicate a variety of federal laws, including those related to fraud and abuse, restrictions on tax exempt institutions, anti-trust restrictions, and the issuance of securities. This new book summarizes the pertinent federal laws implicated by joint ventures, identifies risks, and presents strategies by which hospital executives can structure and operate joint ventures which meet their business objectives while minimizing compliance concerns.
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