Is this service agreement structure compliant?
Yes, if properly structured. There are a number of these actively implemented models formed across the United States, but we feel our proprietary structure is by far the most compliant with both state and federal laws. We have both legal opinions and CPA confirmation of our proper financial structure.
Are Medicare/Medicaid samples eligible?
No, we do not adjudicate federal samples through this method. We sometimes have federal samples sent to the collection point for the hospital but subsequently reroute those samples to our laboratory or to an affiliate laboratory.
What if the hospital is incapable of handling a certain type of test?
We will establish a reference lab to handle any type of test not currently being performed in such a manner that allows the hospital to retain the billing portion of the cycle.
Why use Hospitals for this Model?
It has become increasingly difficult for independent laboratories to obtain billing contracts. It has also become increasingly difficult for hospitals to expand revenue streams with the growth of much larger metropolitan-based hospital entities. Considering that we can directly generate the desired revenues for these hospitals without a capital investment, we are convinced that we are proposing a mutually beneficial program to support your hospital, the provider, the independent lab, and the patient. Our program is a clear Win/Win for each entity.
Has this service platform been utilized before?
It is actually common practice for hospital labs to utilize lab reference contracts and/or other billing services under a compliant, contractual arrangement with one another. Our seemless integration of the latest Medical Management Software has been successfully implemented by hospitals, independent labs and physician offices across the country.