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Zachary
Zachary, Attorney
Category: Legal
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Experience:  Lead trial/International commercial attorney licensed 11 yrs
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If a physician is found guilty of Medicaid fraud, the practice

Customer Question

If a physician is found guilty of Medicaid fraud, the practice would have to be sold. The practices are housed by real estate owned by the convicted physician. Can the new owners have a new lease and continue to run the practice in it's current location.
Submitted: 2 years ago.
Category: Legal
Expert:  Brandon M. replied 2 years ago.

Brandon M. :

Hello there.

Customer: Hello
Brandon M. :

Hello. Thank you for your question.

Brandon M. :

In which state would this occur?

Customer: Wisconsin
Brandon M. :

Thank you. I am licensed in California and I would not be comfortable answering this question, but I will see if one our other attorneys can help now that we know where it is taking place.

Expert:  Zachary replied 2 years ago.
My understanding is that the owner will sell the practice to a new physician, and will lease the building to the new physician. Thus the old owner, who is guilty of medicaid fraud, will only be a landlord?
Customer: replied 2 years ago.
The physician that owned the practice also owns the building. I understand the selling of the practice, but I need new leases from the new owner. Are there any restrictions or limitations that go beyond owning the practice ej. The real state
Expert:  Zachary replied 2 years ago.
No. Owning the real estate that is sold to the new owner of the practice, and leasing that real estate to the owner of the practice, does not qualify as practicing medicine nor does it qualify as sharing medical fees. The building owner simply becomes a landlord.

The sale of the practice needs to take place in strict format, with a new business entity being formed which maintains strict separation from the previous business owner. The lease agreement needs to be in the name of the new practice and not mention the old practice.

Am I answering your question?

Thanks,
Zach
Zachary, Attorney
Category: Legal
Satisfied Customers: 4019
Experience: Lead trial/International commercial attorney licensed 11 yrs
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