AudiologyOnline Phone: 800-753-2160


Neuromod Devices - Your Partner for Tinnitus CTA - September 2021

Contracting Audiology Services to Physicians

Bryan Liang, MD, JD, PhD

November 7, 2005

Share:

Question

I am an audiologist working for a private audiology clinic and hearing aid dispensing center. Our facility wants to contract our audiology services to physicians. If we draw up a contract for an hourly rate of fair market value and provide audiologic services that the physician will bill for himself for Medicare reimbursement, is he violating the Stark Law? The contract would stipulate the number of hours per week we would be in his office, the rate per hour he is paying us and the amount of time the contract would last. We would in return like to be one of the top two to three places the physician would refer to.

Answer

As always, seek qualified legal advice giving full details of your proposed business arrangements with local counsel before entering into any financial relationships.

As for this question's arrangements, there are several issues that require attention. First, with respect to Stark laws, the question does not indicate whether the services to be provided are "designated health services" that are within its statutory provisions. If not, then the Stark laws do not apply. If so, there is clearly a "financial relationship" with the audiology group through the contract. The physician is also clearly making a referral to the group, for whose services Medicare would ultimately pay the physician. It would seem that the relationship could be a vehicle for the physician to obtain reimbursements, with greater number of referrals for hourly services resulting in greater reimbursements for the physician. Hence, under the terms of the Stark laws, which indicate that the physician may not make a referral to an entity with which he/she has a financial relationship to furnish designated health services for which payment otherwise may be made by a federal health program, this arrangement may be problematic.

More difficult are other fraud and abuse laws. For example, if the physician is billing for services that would otherwise not be eligible for federal program reimbursement (which would seem to be the case, since provision of services by the audiology group would not be billed directly to Medicare and instead be somehow billed by the physician), this would be a false claim. The characterization of unreimbursable audiology services into some reimbursable physician services could implicate the audiology group and subject it to civil and criminal sanctions.

As well, this may be considered a kickback situation in violation of the Antikickback Statute. This arrangement may be construed as a solicitation, receipt, offer of remuneration in return for referring services or recommending or arranging of purchase, lease, or ordering of an item to be paid for by a federal health care program. The audiology group may be offering to enter into the contract and allowing the physician to bill for services "he" supposedly provided in exchange for referrals of his patients to the audiology group for services and products. This situation could also implicate the audiology group and subject it to sanctions.

Overall, I would strongly advise this audiology group to obtain competent legal advice. There are significant issues to be resolved.

Bryan A. Liang, MD, PhD, JD, is Executive Director and Professor of Law, Institute of Health Law Studies, California Western School of Law, and Co-Director and Associate Professor of Anesthesiology, University of California, San Diego School of Medicine, San Diego, CA. His work focuses upon law and its interface with health care, including ethics and conflict of interest issues.


Bryan Liang, MD, JD, PhD

Professor and Director of the Institute of Health Law Studies at the California Western School of Law and the University of California San Diego School of Medicine in San Diego, CA

Bryan A. Liang is Professor and Director of the Institute of Health Law Studies at the California Western School of Law and the University of California San Diego School of Medicine in San Diego, CA. He received his B.S. from the Massachusetts Institute of Technology;his Ph.D. in health policy from the University of Chicago Harris School of Public Policy Studies his M.D. from Columbia University College of Physicians & Surgeons and his J.D. from Harvard Law School. His research focuses upon the interface of how law and health care practice interface, with particular attention to ethics, quality issues, and provider education. He does not have a high school diploma, which may explain a lot.


Related Courses

Understanding Privilege, for Healthcare Professionals
Presented by Esther Clervaud, EdS
Recorded Webinar
AudiologyOnline

Presenter

Esther Clervaud, EdS
Course: #36096Level: Intermediate1 Hour
  'Instructor and information presented should make work places better for everyone'   Read Reviews
Systems of privilege have created a wide division of inequality. This course will help hearing care professionals identify their privilege and determine how to make a difference in their places of employment.

View this Course for FREE.
Need CEUs? Become a AudiologyOnline member to get unlimited CEUs.

Only $129/yr

Learn More

Creating Leadership in Audiology Through a Mentoring Circle
Presented by Natalie Phillips, AuD
Recorded Webinar
AudiologyOnline

Presenter

Natalie Phillips, AuD
Course: #37632Level: Introductory1 Hour
  'I had no idea the value of a mentor in audiology!'   Read Reviews
There are so many components to quality patient care that it is challenging to “master” them all. What if you could come together with other professionals who possess knowledge or experience that could help you or your practice? There are a number of veteran audiologists as well as rising professionals who have wisdom, qualifications, narratives, and unique journeys to share. The purpose of this talk is to rethink the traditional mentor/mentee vertical relationship and explore collaboration in the form of circle…where all professionals, regardless of age or experience, learn from each other.

View this Course for FREE.
Need CEUs? Become a AudiologyOnline member to get unlimited CEUs.

Only $129/yr

Learn More

Using Patient-Reported Outcome Measures (PROMs) to Improve Patient-Clinician Communication and Enhance Treatment Efficacy
Presented by Carren Stika, PhD
Recorded Webinar
ReSound

Presenter

Carren Stika, PhD
Course: #35841Level: Introductory1 Hour
  'Good refresher'   Read Reviews
Due to the recent increased focus on providing patient-centered healthcare, use of patient-reported outcome measures (PROMs) have become an essential component of assessing whether the services provided improved patients’ health and sense of well-being. This course will discuss the role of PROMs in healthcare and how using these measures in clinical practice can enhance treatment efficacy, improve patient-clinician communication, and assist clinicians in providing better person-centered care.

View this Course for FREE.
Need CEUs? Become a AudiologyOnline member to get unlimited CEUs.

Only $129/yr

Learn More

Learn to Earn the Salary You Deserve: Negotiating Like a Boss
Presented by Natalie Phillips, AuD
Recorded Webinar
AudiologyOnline

Presenter

Natalie Phillips, AuD
Course: #32770Level: Introductory1 Hour
  'The statistics of the salaries and percentage of each male and female that negotiate their salaries'   Read Reviews
The ability to negotiate your income displays immediate knowledge and confidence in your skillset and worth. In this course, we will examine a revenue and pay justification method to put into place as audiology business owners, employers, and employees.

View this Course for FREE.
Need CEUs? Become a AudiologyOnline member to get unlimited CEUs.

Only $129/yr

Learn More

Core Topics for Audiology Assistants
Presented by James W. Hall III, PhD, Kathleen Weissberg, OTD, OTR/L, Amit Gosalia, AuD
Recorded Webinar
AudiologyOnline

Presenters

James W. Hall III, PhDKathleen Weissberg, OTD, OTR/LAmit Gosalia, AuD
Course: #37123Level: Introductory3 Hours
  'I am currently working as a Patient Care Coordinator and studying for my Audiologist Assistant Certification'   Read Reviews
This course includes one hour of content on each of the following topics: 1) ethical concepts and decision-making; 2) universal safety precautions, including the Occupational Safety & Health Administration's (OSHA) bloodborne pathogens standard, and 3) patient confidentiality and the Health Insurance Portability & Accountability Act (HIPAA).

View this Course for FREE.
Need CEUs? Become a AudiologyOnline member to get unlimited CEUs.

Only $129/yr

Learn More

Our site uses cookies to improve your experience. By using our site, you agree to our Privacy Policy.