April 1, 1 2022
Celebrating
146 Years of
Organized
Medicine in
Dallas County!
April 2022 • DALLAS MEDICAL JOURNAL | 11
components of at least fi ve physicians the
same in terms of the distribution of shares of
overall profi ts from DHS. The group practice
can utilize diff erent distribution methodologies
to distribute shares of overall profi ts
ABOUT THE AUTHORS
An experienced dealmaker and strategic advisor for a
diverse group of healthcare clients, Darrell Armer focuses
his practice on structuring complex commercial transactions
from all of the DHS of each of its components
of fi ve or more physicians, so long as
the group practice utilizes the same methodology
for distributing overall profi ts for
that not only achieve his clients’ business goals, but
every physician within a single component.
For example, in a group practice of 10 physicians
also minimize risk within strict regulatory frameworks. As
leader that of furnish the Healthcare both clinical Transactions laboratory
Practice Group, he
has over 25 years of experience managing all aspects of
the organization, reorganization, funding, operation, and
merger/acquisition of a variety of providers, including
hospitals, ambulatory surgery centers, physical therapy
companies, diagnostic imaging centers, medical and dental
services and diagnostic imaging services, the
physicians can be divided into two components
(Component 1 and Component 2) of
fi ve physicians for purposes of distributing
the overall profi ts from the DHS of the group
practice. Component 1 may distribute overall
profi ts based on a per-capita distribution
practices, and home health agencies, as well as various
provider networks. He is board certifi ed in Health Law by
the methodology,Texas Board of and Legal Component Specialization.2 may
He can be reached
at darmer@grayreed.com.
Rachel Poynter focuses her practice on advising healthcare
distribute overall profi ts based on a personal
productivity methodology. As noted above,
though, a group practice could not use different
providers methodologies on operational,to distribute transactional,the profi ts
and regulatory
matters. These providers include hospitals, ambulatory
surgery centers, physician practices, behavioral health
of the diff erent types of DHS within a component.
For example, Component 1 could not
providers, clinically integrated networks, long-term care
facilities, clinical research entities, pharmacies, laboratories
use a per-capita distribution methodology
to distribute overall profi ts associated with
diagnostic imaging services and then use a
personal productivity methodology to distribute
and other ancillary service providers. Through her experience
with the Federal Anti-Kickback Statue, the Stark
overall profi ts associated with clinical
laboratory services. This diff erentiation within
a component would constitute distributing
profi ts on a service-by-service basis, which
CMS has clarifi ed is not permitted.
CMS does not place strict parameters
around how a group practice establishes
the components of at least fi ve physicians.
For example, physicians may be grouped by
similar practice patterns, practice location,
years of experience, similar tenure within the
group practice, or other criteria determined
by the practice. All that is essential is that the
share of the overall profi ts received by the
physician is not determined in any manner
that is directly related to the volume or value
of the physician’s referrals.
Lastly, CMS made changes to align the
special rules for profi t shares and productivity
bonuses with the new value-based rules.
More specifi cally, CMS will allow a physician
to be paid profi ts from DHS that are directly
attributable to a physician’s participation in
a value-based enterprise.
It is important to remember that the
foregoing only applies to overall profi ts and
revenues derived from DHS. Group practices
may still distribute the revenues from services
that are not DHS in any manner that they
wish. And lastly, practices should be prepared
to provide supporting documentation verifying
the method used to calculate the profi t
share or productivity bonus to the Secretary
of CMS upon request.
Since the new regulations are now in effect,
this is your last CHANCE. DO NOT PASS
GO. Go directly to your compensation policy.
And as long as it complies with the new rules,
then YOU CAN LEGALLY COLLECT $200. DMJ
ABOUT THE AUTHORS
An experienced dealmaker and strategic
advisor for a diverse group of healthcare
clients, Darrell Armer focuses his practice
on structuring complex commercial transactions
that not only achieve his clients’
business goals, but also minimize risk within
strict regulatory frameworks. As leader of the
Healthcare Transactions Practice Group, he
has over 25 years of experience managing all
aspects of the organization, reorganization,
funding, operation, and merger/acquisition
of a variety of providers, including hospitals,
ambulatory surgery centers, physical therapy
companies, diagnostic imaging centers,
medical and dental practices, and home
health agencies, as well as various provider
networks. He is board certifi ed in Health Law
by the Texas Board of Legal Specialization.
He can be reached at darmer@grayreed.
com.
Rachel Poynter focuses her practice
on advising healthcare providers on operational,
transactional, and regulatory
matters. These providers include hospitals,
ambulatory surgery centers, physician
practices, behavioral health providers, clinically
integrated networks, long-term care
facilities, clinical research entities, pharmacies,
laboratories and other ancillary service
providers. Through her experience with the
Federal Anti-Kickback Statue, the Stark Law,
the Texas Illegal Remuneration Act, HIPAA,
EMTALA, and the Food, Drug, and Cosmetic
Act, among others, Rachel routinely counsels
on best practices for healthcare providers to
maintain compliance with the federal and
state regulatory frameworks that aff ect their
day-to-day operations. She can be reached
at rpoynter@grayreed.com.
/swdic.com
