Cardiovascular Business - May/June 2008 - (Page 13)

the wisest and most successful partners develop a dissolution strategy prior to forming a joint venture. › tread Very Carefully with Joint Ventures one option for practices that lack the volume to justify new equipment like a 64-slice Ct scanner is the joint venture; however, regulations regarding joint ventures are evolving. “Cardiology practices in the market for new imaging technology should consider the regulatory climate as well as the economics of the investment,” states thomas Greeson, partner with reed smith LLP, Falls Church, Va. although the economic picture for cardiac Ct imaging looks more promising since the government’s decision in March to leave reimbursement up to local payors, cardiology practices aren’t out of the woods. the Centers for Medicare & Medicaid services recognizes that the government spends a tremendous amount of money on imaging services and could attempt to curtail spending, says Greeson. In fact, looming changes in the regulatory arena could have a negative impact on revenue. Currently, the stark Law permits cardiologists to form a legal entity to buy or lease a scanner and sell or lease the equipment to a hospital they have a referral relationship with. CMs may amend the law to prohibit referrals to the hospital. the economics could make leasing company joint ventures less palatable and even unprofitable. a decision is expected by the end of 2008. CMs could restrict in-office imaging in a second, less likely, scenario. CMs may require imaging equipment to be in the same office as the cardiologist, effectively limiting profits for a practice that houses a scanner in a separate part of the same building. that is, if the antiMarkup rule goes into effect on January 1, 2009, as currently written, physicians could refer patients to a Ct located on a different floor or in a different office, but they could not profit from the referral for Medicare patients. Like advanced technology, joint ventures may have a limited lifespan. the wisest and most successful partners develop a dissolution strategy prior to forming a joint venture. that way, if stark is invoked, all players understand the next steps. a solid dissolution strategy may dissuade practices from an unwise decision. “tread very carefully with joint ventures. Get good advice from transactional lawyers and review the ins and outs of the regulatory climate,” sums Greeson. CardiovascularBusiness.com Cardiovascular Business 13 http://CardiovascularBusiness.com

Table of Contents Feed for the Digital Edition of Cardiovascular Business - May/June 2008

Cardiovascular Business - May/June 2008 Contents First Word Cover Story - Coronary CTA: Drafting the Strategic Plan Financing New Technologies: Early Adopters, Lease vs. Purchase, and Joint Ventures Clinical Study Digest: ACE or ARB: It's Your Choice Can Off-Hour D2B Times Be Reduced Without Breaking the Bank? Digital Image Management Primer: Integrating Echo SPECT/CT for Cardiac Disease Detection: An Economic Conundrum Integrating the Healthcare Enterprise Connects IT Systems News & Views Calendar Reader's Resources The Back Page

Cardiovascular Business - May/June 2008

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