OIG offers safe harbor for rental agreements
How to avoid prosecution
Providers who rent space to other physicians and suppliers who generate business for them can immunize themselves from prosecution under anti-kickback laws by adhering to all of the following safe harbor criteria, says the Department of Health and Human Services’ Office of the Inspector General. Specifically, the agency says:
— Agreements must be in writing and signed by all parties.
— Contracts must specific and cover all the premises being rented for the term of the agreement.
— Agreements that give the lessee access to the premises for only certain time intervals instead of on a full-time basis must specify the times, their precise length, and the exact rent for this use.
— Rents must be set in advance and be consistent with fair market value in an arms-length transactions.
— Rents cannot be determined in a manner that considers the volume or value of any referrals or business otherwise generated between the parties for which payment may be made in whole or in part under Medicare or a state health care program.
— Total space rented can not exceed that reasonably necessary to accomplish the commercially reasonable business purpose of the rental.
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