OIG Issues First Co-Management Opinion

By: Mike Segal

The OIG has recently issued a favorable opinion, its first, on a co-management agreement between a hospital and a physician group, in OIG Advisory Opinion 12-22. Such agreements, where physicians can receive shared savings for reducing hospital costs while maintaining or increasing the quality of care, have become increasingly popular during the past few years. However, until now authority for this type of relationship has been based upon its close cousin, a “gainsharing” arrangement (see, e.g., OIG Advisory Opinion 08-16).

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