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Physician Alignment Ask the Expert Answers

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Stark and Payment

Q: In light of Stark, should PHOs be concerned about funding from their associated hospitals?

(e.g. a hospital provides half or more funding needed to operate a PHO. The PHO provides services and materials, often at below or no cost to member physicians.)

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Physician Alignment Answer: Hospital Supply Costs

Q: I am curious if there is a benchmark of the typical supply costs to hospitals as a percentage of operating income. Do you know if a figure like that exists?

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Physician Alignment Answer: For-Profit or Not-For-Profit?

Q: Many hospitals and health systems are forming a separate corporation to house their physician practices. The question always comes as to what tax status to apply for, for-profit or not-for-profit. What are you all seeing in the market?

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