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E. The provisions in the Professional Services Agreement shall conform to applicable Stark Law exceptions and/or Anti Kickback Statute safe harbors, which set forth parameters regarding contract terms including, but not limited to:
- The term of the Professional Services Agreement;
- The services to be rendered. Services may be detailed in a job description. The Provider shall contract only for services that are reasonable and necessary for the arrangement’s commercially reasonable business purposes. The Agreement with a Provider shall not include payment for services that:
- are not required for the operation of the Provider;
- regularly accompany the professional services being rendered by the RowanSOM Professional;
- are required pursuant to Provider’s medical staff bylaws to be rendered by the RowanSOM Professional without payment;
- involves counseling or promoting activities that violate state or federal law.
There are no other arrangements for the provision of professional services, whether oral or written, with the RowanSOM Professional. Payment may not take into account referrals or other business generated between the parties.
The payments pursuant to the Professional Services Agreement represent fair market value for the services to be rendered. Payment methodology and rates must be established at fair market value at the inception of the Professional Services Agreement (See Fair Market Valuation policy) and may not change during the first twelve months of the Professional Services Agreement term. Fair market value should be periodically assessed for compliance purposes.
In circumstances where the service fees are affected/adjusted to promote a business related benefit, community need or altruistic purpose, the Provider must document and justify the business related benefit, community need or other rationale for the services being requested in the Agreement.
F. Commitments under the terms of the Agreement should not be made until written approvals have been obtained from the Dean, Chief Executive Officer, and the Office of Legal Management. Upon successful completion of negotiations, the Agreement shall be executed in accordance with RowanSOM policy Legal Commitment Authority. The Agreement must be signed by duly authorized signatories of each party before any services are provided and before any payments are made and received.
G. To the extent the Professional Services Agreement is a Focus Arrangement, as such is defined under the Voluntary Compliance Plan effective September 26, 2014, the Focus Arrangements Database Policy and Focus Arrangements Approval Procedure apply and must be followed.
H. The Office of Legal Management will ensure that fair market value documentation is attached to the Professional Services Agreement, and that the Professional Services Agreement satisfies the requirements of state and federal law. A copy of this documentation will be maintained with the Professional Services Agreement.
I. The Office Compliance and Corporate Integrity will educate responsible parties on the laws, regulations and policies applicable to Professional Services Agreements and will monitor and review such Professional Services Agreements; review the reasonableness of the methodology employed to establish the fair market value that is attached to the Professional Services Agreement; evaluate the Professional Services Agreement’s compliance with applicable state and federal law; and assist the responsible dean or chief executive officer with remediating such Professional Services Agreements when potential violations of this Policy are detected.
By Direction of the President:
Signature on file
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