Managing the business side of a dental practice and providing patients with the highest-quality healthcare and customer service takes a lot of time, effort, and labor. To ease the heavy workload, a dentist may decide to partner with healthcare management services organizations (MSOs). An MSO offers dentists non-clinical and administrative support services so they can prioritize and focus on the clinical aspects of their practice.
While helpful, it is important that when contractual MSO arrangements are made, time and care are put into structuring these agreements to minimize regulatory issues. This is why having an attorney’s assistance is critical. The Los Angeles MSO attorneys at Leiva Law Firm have decades of experience helping dentists in the state of California implement and manage their MSOs and remain compliant with the laws that govern the dental industry.
Staying Compliant with the Corporate Practice of Dental Medicine
The corporate practice of dental medicine involves some serious considerations. Regulatory issues can arise, leading to significant repercussions. This is why it is essential for a dental practice to ensure compliance when structuring an MSO. An attorney’s assistance can be vital in these situations.
In particular, non-licensees cannot exercise control and engage in the practice of medicine. Additionally, fee-splitting is strictly prohibited. Fee splitting happens when a dental professional is paid for their medical services and splits the money with others. Likewise, a dentist may not refer patients to entities that they have a financial relationship with for medical services.
These regulations and guidelines are aimed at cracking down on kickbacks and healthcare fraud. Dentists who violate the statutes can be issued expensive fines, as high as $100,000 per violation. Imprisonment and loss of eligibility for government programs may also be other consequences of statute violation.
The healthcare industry is tightly regulated, and as a result, while MSOs can help a dentist run their practice more efficiently, they can also raise legal concerns. For this reason, dentists must be very careful when they structure their MSOs to remain compliant with the strict healthcare laws and regulations. This is particularly true when it comes to fraud like anti-kickback.
The dental industry is trending towards the use of MSOs. If you are interested in creating an MSO then it is important to connect with an attorney as soon as possible. Knowing and understanding your rights and responsibilities is critical and it is something that an attorney can discuss with you. At the Leiva Law Firm, the legal team is knowledgeable and experienced in the development of these businesses. Whether you are a private equity investor, a dental professional with your own practice, a mobile dental service provider, or another professional interested in establishing, owning, and managing a dental practice, the Leiva Law Firm can help you navigate dental MSO regulations and compliance in California.
Speak to an Attorney at Leiva Law Firm Today
For more details on MSO formation and compliance in California and personalized representation, you are welcome to call Leiva Law Firm at (818) 519-4465 to schedule an initial consultation with an experienced attorney.