The OIG’s Special Bulletin on Joint Ventures outlines how hospitals should enter joint

ventures with physicians. The bulletin outlines how possible relationships between hospitals
and providers could be construed as being kickbacks for patient referrals. In a world where
patients are shopping for their healthcare it makes sense that a financially responsible, health-
conscious consumer would look for a one stop group to handle all of their medical needs. “ A
“joint venture” occurs when two or more individuals/entities own something together” (2016,
Baird, para 5).
Baird (2016) states the federal Anti-Kickback Statute, 42 U.S.C. § 1320a7b(b), prohibits the
offer, payment, solicitation or receipt of any remuneration in exchange for referring a patient for
an item or service that may be paid for by a federal health care program, or in exchange for
purchasing, leasing or ordering, or arranging for or recommending purchasing, leasing or
ordering, an item or service that may be paid for by a federal health care program. 
Hospitals and providers may violate the Ant-Kickback Statute by creating a patient referral
system where the joint parties create a cycle of reimbursement. For example, a hospital
employs two doctors. These two doctors are on the board of the hospital. These two doctors
refer patients back and forth between one another. Because these doctors are on the board,
they are receiving kickbacks for investing in the hospital by referring patients back to the
hospital. Problems with this type of kickback could result in fraud, abuse, and possible
negligence and malpractice concerning patient health.
I do not think this Special Bulletin is too restrictive. I believe that investors, hospitals, and
providers should be held accountable to ensure that quality care is being delivered to the
patient on the basis of what is best for the patient instead of what is in the best interests of the
investors. The OIG is trying to protect patients from predatory behavior
I am torn on this. I do think that the OIG’s Special Bulletin on Joint Ventures is important to
ensuring patients are receiving the best care for their conditions I also understand how joint
ventures can be good for medicine. The OIG is trying to ensure that providers are not just
pushing their products on their patients for financial gain but I would like to hope that most
providers wouldn’t just push something for personal gain. I know that this isn’t the case, and
the OIG had to put this Special Bulletin out for a reason, I just wish we lived in a different
world.
I like how you outlined that the OIG is responsible for promoting the best ethical and lawful
conduct by developing guidelines to alert and inform the healthcare industry about practices
or arrangements that could implicate potential challenges of fraud and abuse. I understand
how violations for the federal Anti-kickback Statutes can be easily violated. Your example of
providers “branching out” into other revenue streams does seem to be iffy and possibly
problematic. It seems like a tight rope.
Baird, J. (2016, April 25). Forming a Joint Venture – Legal Guidelines. Retrieved from
https://medtrade.com/news/general-healthcare/Forming-a-Joint-Venture-Legal-Guidelines/
FindLaw Attorney Writers. (2008, March 26). OIG Issues Special Advisory Bulletin on
Contractual Joint Ventures. Retrieved from https://corporate.findlaw.com/law-library/oig-
issues-special-advisory-bulletin-on-contractual-joint.html
Office of Inspector General (OIG). (2003, April 23). Contractual Joint Ventures OIG Special
Advisory Bulletin. Retrieved
from https://www.oig.hhs.gov/fraud/docs/alertsandbulletins/042303SABJointVentures.pdf