FACTS:

A hospital system which is a tax-exempt 501(c)3 entity is negotiating with a physician group practice to joint venture on a healthcare delivery module whereby the physicians will perform services for patients, the hospital will fund the joint venture, and it will include diagnostic imaging procedures and other services which could be designated as ancillary services under the federal Stark Law. Please identify the business, tax, fraud and abuse and Medicare considerations and issues which the parties will need to have their legal counsel analyze prior to entering into the transaction. Also, please identify the potential federal and Florida healthcare regulatory laws, rules, regulations and legal principles which could be involved in this transaction.

Students may simply list the issues and the potentially applicable laws, rules and regulations in a bullet type of format instead of spending several pages writing out the explanation. In doing so, students should list issues and identify them as issues, and then put a separate listing for laws, rules, regulations and principles.