A recent publication in Becker’s Hospital Review notes that although the medical profession is suffering from a shortage in most specialties, few are as hard hit as the field of radiology. The American College of Radiology notes that the demand for radiologists continues to grow and estimates imaging studies will likely pass one billion this year — putting additional strain on an already overworked profession.
Radiologists can see this reality as an opportunity. The need for highly trained and experienced professionals has arguably never been higher. By avoiding these three missteps, radiologists can make the most of the demand for their services.
#1: Unwise referral agreements
The antikickback statute (AKS) and Stark Law are federal laws that aim to prevent improper financial incentives that could influence healthcare decisions. Referral agreements that result in financial benefits can trigger an investigation.
These laws directly impact the practice of radiology. Referral agreements generally should not include compensation based on the volume or value of referrals. Transparency and adherence to legal guidelines in these agreements help to safeguard against potential violations and promote ethical medical practices.
#2: A good deal on commercial property
Radiologists often require physical space to operate their practices. However, leasing arrangements that are below market value can become a legal minefield. If a lease agreement is not consistent with fair market value, the CMS may perceive the agreement as a kickback, leading to severe penalties, including fines and possible imprisonment.
As such, radiologists are wise to ensure that all lease agreements are commercially reasonable, reflect fair market value, and are set in advance without considering the volume or value of referrals.
#3: Investing in imaging centers
Radiologists may also face legal scrutiny when investing in imaging centers. The AKS and Stark Law strictly regulate these investments to prevent conflicts of interest and ensure patient care decisions are based on medical need rather than financial gain. Radiologists considering such investments need thorough legal review to help better ensure compliance with all relevant healthcare laws.
Navigating the complexities of the AKS requires vigilance and an understanding of the legal landscape in which radiology practices operate. Whether it involves referral agreements, leasing space, or investing in imaging centers, radiologists must ensure their actions are within the bounds of the law to avoid severe penalties. Conducting regular internal audits and staying informed about changes in healthcare law are important steps for any radiology professional aiming to not only maintain a compliant and successful practice but also take advantage of a market that is in dire need of your services.
Attorney John Rivas is responsible for this communication.
