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Can Nonprofit Hospitals Coexist With Physician Ownership?

Law360 (November 13, 2006, 12:00 AM EST) -- Hospitals, both nonprofit and for-profit, are increasingly sharing control over profitable health care delivery assets with physicians. Nonprofit hospitals in particular are struggling with how best to retain their physician referral base when the hospitals’ tax-exempt status and the federal and state anti-kickback and self-referral (Stark) laws make sharing ownership and revenue with physicians more difficult to accomplish.

The primary challenge facing many nonprofit hospitals today is winning the loyalty of leading physicians who want to own their own specialty hospital, ambulatory surgery center or medical...
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