WILLIAM DONALD SCHAEFER, Governor                            Ch. 376

(IV)    THAT ARE UNRELATED TO THE PAST OR EXPECTED VOLUME
OF REFERRALS FROM THE HEALTH CARE PRACTITIONER TO THE HEALTH CARE
ENTITY; AND

(V)     THAT ARE NOT MARKETED DIFFERENTLY TO HEALTH CARE
PRACTITIONERS THAT MAY MAKE REFERRALS THAN THEY ARE MARKETED TO
OTHER INDIVIDUALS.

(C) (1) "COMPENSATION ARRANGEMENT" MEANS ANY AGREEMENT OR
SYSTEM INVOLVING ANY REMUNERATION BETWEEN A HEALTH CARE
PRACTITIONER OR THE IMMEDIATE FAMILY MEMBER OF THE HEALTH CARE
PRACTITIONER AND A HEALTH CARE ENTITY.

(2) "COMPENSATION ARRANGEMENT" DOES NOT INCLUDE:

(I)       COMPENSATION OR SHARES UNDER A FACULTY PRACTICE
PLAN OR A PROFESSIONAL CORPORATION AFFILIATED WITH A TEACHING HOSPITAL
AND COMPRISED OF HEALTH CARE PRACTITIONERS WHO ARE MEMBERS OF THE
FACULTY OF A UNIVERSITY;

(II)     AMOUNTS PAID UNDER A BONA FIDE EMPLOYMENT
AGREEMENT BETWEEN A HEALTH CARE ENTITY AND A HEALTH CARE
PRACTITIONER OR AN IMMEDIATE FAMILY MEMBER OF THE HEALTH CARE
PRACTITIONER;

(III)    AN ARRANGEMENT BETWEEN A HEALTH CARE ENTITY AND A
HEALTH CARE PRACTITIONER OR THE IMMEDIATE FAMILY MEMBER OF A HEALTH
CARE PRACTITIONER FOR THE PROVISION OF ANY SERVICES, AS AN INDEPENDENT
CONTRACTOR, IF:

1.        THE ARRANGEMENT IS FOR IDENTIFIABLE SERVICES;

2.        THE AMOUNT OF THE REMUNERATION UNDER THE
ARRANGEMENT IS CONSISTENT WITH THE FAIR MARKET VALUE OF THE SERVICE
AND IS NOT DETERMINED IN A MANNER THAT TAKES INTO ACCOUNT, DIRECTLY OR
INDIRECTLY, THE VOLUME OR VALUE OF ANY REFERRALS BY THE REFERRING
HEALTH CARE PRACTITIONER; AND

3.        THE COMPENSATION IS PROVIDED IN ACCORDANCE
WITH AN AGREEMENT THAT WOULD BE COMMERCIALLY REASONABLE EVEN IF NO
REFERRALS WERE MADE TO THE HEALTH CARE PROVIDER;

(IV)    COMPENSATION FOR HEALTH CARE SERVICES PURSUANT TO A
REFERRAL FROM A HEALTH CARE PRACTITIONER AND RENDERED BY A HEALTH
CARE ENTITY, THAT EMPLOYS OR CONTRACTS WITH AN IMMEDIATE FAMILY
MEMBER OF THE HEALTH CARE PRACTITIONER, IN WHICH THE IMMEDIATE FAMILY
MEMBER'S COMPENSATION IS NOT BASED ON THE REFERRAL;

(V)     AN ARRANGEMENT FOR COMPENSATION WHICH IS PROVIDED
BY A HEALTH CARE ENTITY TO A HEALTH CARE PRACTITIONER OR THE IMMEDIATE
FAMILY MEMBER OF THE HEALTH CARE PRACTITIONER TO INDUCE THE HEALTH

- 2071 -