Will renting an office attract antikickback scrutiny?

December 2, 2005

Our small group practice plans to rent office space to a physiatrist. If we refer Medicare patients to him, will we violate federal antikickback statutes?

Q: Our small group practice plans to rent office space to a physiatrist. If we refer Medicare patients to him, will we violate federal antikickback statutes?

A: Not necessarily. You can fit this rental into a "safe harbor" (where the antikickback rules don't apply) if (1) your arrangement is in writing, (2) the term of the lease is for at least one year, and (3) the lease rate is equal to fair market value and the rent the physiatrist is scheduled to pay isn't affected by the number of patients you refer to him.