Medical Timeshare Agreements

Under the Federal Self-Referral Prohibition (42 U.S.C. Sec. 1395nn) or “Stark Law,” Timeshare arrangements are similar to a part-time lease, which can be more cost-effective for a physician.

A timeshare agreement must provide for the following items:

1. Payment for the use of the premises;
2. In writing, signed by the parties;
3. Specifies the services covered;
4. Arrangement between a physician and a hospital, or physician organization of which the physician is not an owner, employee or contractor;
5. The premises are used predominantly for the provision of evaluation and management services to patients, on the same schedule;
6. The equipment is in the same building, not used to furnish Designated Health Services (DHS), is not advanced imaging equipment, radiation therapy, or clinical or pathology lab equipment;
7. The agreement is not conditioned on the referral of patients by the physician;
8. Rental rates are set in advance, fair market value (FMV), not determined by the volume or value of referrals;
9. Is commercially reasonable;
10. Does not violate Anti-Kickback Statute or any Federal or State law; and
11. Does not convey a possessory leasehold interest.