ASC Member Liability

April 16, 2013

Question:

Jennifer,

Does a fractional owner of an ASC have potential liability if a physician who utilizes said facility is overly aggressive with there professional fee billing?

More simply, if I invest in an ASC and the ASC billing is kosher, but one of the docs using the facility is in my estimation a "pig" with how he bills, could I get dragged in a legal action.

Thanks

Dr. R

Answer:

Maybe.  Liability for a member of an ASC is determined by the contractual relationships set forth in the organizing documents of the ASC and the membership documents.  If the Operating Agreement effectively limits liability and/or addresses liability in certain circumstances, i.e., potential audit or improper documentation exposure, the aforementioned scenario would not impact the complying physicians, potentially.  However, should the contracts remain silent as to potential liability other members could potentially find themselves liable for liability created by another.  In order to adequately protect yourself in a venture, it is imperative to have competent counsel working on your behalf to ensure proper contractual protections.