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Scrutinize FMV in a performance-based environment
As the healthcare industry continues to embrace performance-based business models, providers are entering into new financial relationships that, though often successful in improving care and reducing costs, may trigger legal violations if not carefully planned. Pay-for-performance programs, gainsharing arrangements, joint ventures, comanagement agreements, and a whole host of other models that tie financial payments to measurable results are spreading throughout the industry, but in some cases the legal framework has not caught up to the industrywide shift.