Structuring Physician Timeshare Arrangements: Leveraging the Stark Exception, Navigating the Limitations

The Centers for Medicare and Medicaid Services (CMS) timeshare exception permits physicians, hospitals, or other physician groups to share “space, equipment, personnel, items, supplies or services” through non-exclusive timeshare arrangements. This provides physicians and hospitals with an alternative to a full-time lease and makes it easier to share resources and expand services for patients.

To take advantage of the exception, certain conditions must be met. For example, the physician cannot be an owner, employee, or contractor--regardless of which party grants and which party receives permission to use the premises, equipment, personnel, items, supplies, and services of the other party.

Also, when structuring the arrangement, counsel should consider that in the final rule CMS compared a timeshare arrangement with a license, referring to the parties to a timeshare arrangement as licensor and licensee.

Further, hospitals, physician organizations, and physicians that are currently in or considering entering into a timeshare arrangement should review the rule and exception to ensure compliance with the requirements and understand its limitations.

Listen as our authoritative panel of healthcare attorneys reviews the Stark exception for timeshare arrangements and the requirements to meet the exception. The panel will also discuss the challenges that have arisen and what providers and their counsel are doing to overcome those challenges. The panel will also look at structuring the timeshare arrangement to ensure compliance with AKS and overcoming the practical challenges in structuring compliant timeshare leasing arrangements.