OIG Issues Advisory Opinions on Co-Management Agreements

January 14, 2013

The Office of Inspector General (OIG) recently issued a favorable advisory opinion on a co-management arrangement between a hospital and a physician group (Advisory Opinion 12-22).  While the OIG has issued over the years a number of favorable advisory opinions on gainsharing arrangements in which physicians are compensated for achieving cost-savings, the OIG has not, until now, issued any guidance on broader co-management arrangements.  This favorable opinion is thus noteworthy and provides some guidance to any hospital or physician group considering entering into a co-management arrangement.

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