334.252. Physicians prohibited referral to certain physical therapists, definitions.

Physicians prohibited referral to certain physical therapists,definitions.

334.252. As used in this section and section 334.253, thefollowing terms mean:

(1) "Board", the state board of registration for thehealing arts in the state of Missouri;

(2) "Entity", any individual, partnership, firm,corporation, or other business entity which provides, furnishes,or refers physical therapy services;

(3) "Fair market value", value in arms length transactions,consistent with the general market value and, with respect torentals or leases, the value of rental property for generalcommercial purposes, not taking into account its intended use,and, in the case of a lease of space, not adjusted to reflect theadditional value the prospective lessee or lessor would attributeto the proximity or convenience to the lessor where the lessor isa potential source of patient referrals to the lessee;

(4) "Joint venture", any ownership or investment interestor compensation arrangement between physicians and an entityproviding physical therapy services;

(5) "Physician", any physician licensed under chapter 334;

(6) "Referral", any referral or prescription, written orverbal, for physical therapy service;

(7) "Remuneration" includes any remuneration, directly orindirectly, overtly or covertly, in-cash or in-kind arising outof a compensation arrangement of any kind. Remuneration does notinclude any payment by a lessee or lessor for the use of premisesor equipment as long as all of the following five standards aremet:

(a) The lease agreement is set out in writing and signed bythe parties;

(b) The lease specifies the premises or equipment coveredby the lease;

(c) If the lease is intended to provide the lessee withaccess to the premises or to the equipment for periodic intervalsof time, rather than on a full-time basis for a term of thelease, the lease shall specify exactly the schedule of suchintervals, their precise length, and the exact rent for suchintervals;

(d) The term of the lease is not for less than one year;

(e) The aggregate rental charge is set in advance, isconsistent with fair market in arms length transactions, and isnot determined in a manner that takes into account the volume orvalue of any referrals or business otherwise generated betweenthe parties;

(8) "Rural area", a county with a population density of nogreater than one hundred persons per square mile, as defined bythe latest United States Census.

(L. 1992 H.B. 1377 § 1 subsec. 1)

Effective 1-1-95