Endoscopy Suite Model Sample Clauses

Endoscopy Suite Model. The Endoscopy Suite Model builds upon the basic contractual structure of the Service Agreement Model but attempts to increase the profitability of the enterprise by replacing the ambulatory surgery center with an office-based surgical practice (an “OBS”). The GI physicians lease the space, obtain the necessary accreditation for the facility,10 hire all the necessary support staff, and purchase all of the endoscopy equipment. The OBS then subleases space to the anesthesiologists (either directly or through their professional entity), and provides all services to the anesthesiologists, including administrative and billing services. The contractual elements — a real estate lease, an equipment lease, and a personal services contract — are the same elements present in the Service Agreement Model and are subject to the same analysis in determining whether each element satisfies an applicable safe harbor. The advantage of the Endoscopy Suite Model is that, if it is done properly, it can reduce overall overhead while increasing the services and facilities available to be provided and paid for by the anesthesiologists, without taking on significant additional risk with respect to the anti-kickback laws. However, the other business models considered herein assume that there is an existing ASC that is seeking to restructure its relationship with its anesthesiologists. Assuming that to be the case, the obvious downside to the Endoscopy Suite Model is that it requires a more comprehensive overhaul of the entire practice structure and the creation of a new OBS facility, with its attendant time and expense.