Co-Location Arrangements: Complying With Legal and Regulatory Requirements When Structuring and Managing Arrangements

Hospitals and healthcare providers are entering into co-location arrangements with other entities, such as physician practices and departments of other hospitals, to improve the quality and efficiency of patient care. The CMS issued guidance for ensuring compliance with co-location arrangements in late 2021.

CMS provides guidance on how state surveyors evaluate hospital compliance with Medicare hospital conditions of participation (CoPs) in connection with hospital co-location arrangements with other hospitals and healthcare providers. The guidance removed most examples of compliant and noncompliant co-location arrangements. Instead, the CMS provides general statements that hospitals should ensure that co-location arrangements are compliant.

Further, CMS excluded critical access hospitals and private physician offices from the definition of "healthcare providers" in the context of the guidance. However, CMS was silent about whether this means that co-location arrangements with these entities are prohibited, thereby adding to the uncertainty.

Parties to co-location arrangements must grasp the regulatory requirements in order to continue to participate in the Medicare program and compliantly bill for services. Identifying and addressing potential legal and regulatory hurdles is critical.

Listen as our authoritative panel of healthcare attorneys examines the CMS guidance for co-location arrangements. The panel will also discuss the considerations when entering a co-location arrangement and the regulatory hurdles involved. The panel will offer best practices for structuring and managing compliant arrangements.