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Mike Smith, CEO at St. William Hospital, a non-profit hospital in downtown Springfield, is approached by Dr. Neuro, a member of St. William's board of

Mike Smith, CEO at St. William Hospital, a non-profit hospital in downtown Springfield, is approached by Dr. Neuro, a member of St. William's board of directors. Dr. Neuro and his 4 partners, who are members of St. William's medical staff but not employed by the hospital, own Springfield Neurosurgery, Inc., the largest neurosurgery practice in Springfield. They just received notice that Springfield Neurosurgery, Inc.'s medical malpractice premium is doubling. Dr. Neuro asks Mike what St. William can do to help them. Dr. Neuro says two of the group's physicians will leave town unless St William provides some financial assistance. (In light of this potential departure of half the group, Dr. Neuro is discussing a merger with another neurosurgery group that employs 3 surgeons in Springfield. If the 2 groups combined, there would be only 3 other independent neurosurgeons practicing in Springfield.) Mike wants to please his board member and he also knows that Springfield Neurosurgery generates a significant amount of inpatient revenue for St. William and provides a fair amount of charity work on uninsured and underinsured patients in Springfield. The group also provides on-call coverage for the emergency department, for which it is not paid. Analyze the situation and (1) provide your advice on the risks St. William Hospital should consider under applicable law and any recommendations on how financial assistance could be provided to Springfield Neurosurgery in a compliant fashion and (2) consider any legal issues that may arise for Springfield Neurosurger

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1 St William Hospital should consider the following risks under applicable law AntiKickback Statute ... blur-text-image

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