Please prepare a response for both Hypo #1 and Hypo #2 below. Your response should spot the issues that are problematic with each proposed arrangement and explain the issues while using the AKS statute and regulations to guide your answer. Your paper should total approximately 750-1000 words (encompassing both Hypo #1 and #2).
Hypo #1
A hospital provides services to pediatric orthopedic patients and has 4 hospital beds dedicated to these patients. A pediatric orthopedic surgeon approaches the CEO to offer to serve as the Medical Director of this 4-bed unit. The surgeon tells the CEO that he could provide 10 hours per week of Medical Director services and that he would be in the best position to prepare the duties, which would be included in the contract.
Hypo #2
Times are tough for Star Hospital, an academic medical center. Its volumes are dropping. The A-Team comes up with the idea of employing physicians to lock in their business. They talk to a group of 10 heart specialists and offer to employ them on a part-time basis. They would be paid what they are currently making in their private practices. In addition, Star would retain another 10 physicians to serve as clinical professors services for its accredited residency program, which currently has 25 students. Finally, Star is offering all physicians one month of lease payments forgiven if they move into its medical office building. A lease, approved by counsel and consistent with fair market value, would be signed by both parties immediately thereafter if the physicians like the space they are in.
