Summary
Action:
The OIG recently issued an Advisory Opinion that "contractual" joint ventures are subject to prosecution even if they fully comply with all applicable safe harbors.
Impact:
OIG Advisory Opinions bind only the party(ies) seeking the opinion. However, this recent opinion provides valuable insight into the OIG’s perspective on contractual joint ventures in particular, and the "protection" offered by the safe harbors generally.
Effective Date:
December 17, 2004.
In OIG Advisory Opinion 04-17, posted December 17, 2004 ("Advisory Opinion"), the OIG asserts that socalled "contractual" joint ventures can be prosecuted under the federal anti-kickback statute, even if they fully comply with all applicable safe harbors. This significantly raises the stakes in the OIG's campaign against what it refers to as "contractual" joint ventures. However, it could also have implications far beyond that, potentially calling into question almost any safe harbored arrangement that the OIG
