Dr. John is a cardiologist in Manhattan (NYC), where there are plentiful hospitals and wealthy potential patients. Seeing a solid economic opportunity, he wants to invest in an orthopedic hospital (focusing on the musculoskeletal system) owned and managed by physicians. Although he is a cardiologist and the heart is a muscle, this hospital provides no cardiology services and Dr. John will neither refer patients there nor treat any patients there--orthopedics is just a relatively lucrative medical specialty! Will he violate federal law if he invests in the orthopedic hospital, and why or why not? As part of your response, refer to specific federal statutes discussed in this weeks lecture and readings.

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Dr Johns situation raises concerns regarding the federal antikickback statute AKS and the Stark Law ... View the full answer