Outpatient Surgery Magazine recently published an article describing a case in New Jersey in which an ASC successfully defended an action brought by three physicians who were forced to sell their ownership interests in the ASC due to the physicians’ failure to meet the “one-third procedures test” under the applicable federal anti-kickback statute safe harbor. The physicians had previously signed the ASC’s operating agreement in which they agreed to comply with the one-third/one-third tests. However, they failed to do so and refused to sell their units. So, the ASC sold their units for them (for a hefty profit) in order to bring the ASC into compliance with the safe harbor. The physicians sued the ASC alleging violation of the state’s securities laws, but the ASC prevailed. See the full article.
