Common use of SPECIAL RULES FOR PROFIT SHARES AND PRODUCTIVITY BONUSES Clause in Contracts

SPECIAL RULES FOR PROFIT SHARES AND PRODUCTIVITY BONUSES. Sub-groups within the group may be formed for cost accounting and profit distribution purposes, as long as each sub-group consists of at least five physicians. • Physicians in the group (including independent contractors) may receive a share of group or sub-group profits from “designated health services” as that term is defined in regulations promulgated pursuant to the Xxxxx Act (“DHS”), including but not limited to orthotics and durable medical equipment, if: • Per capita distributions are made. • Profits derived from DHS are distributed on the same basis as profits attributable to services that are not DHS. • Revenues derived from DHS constitute less than. 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may receive a productivity bonus for personally performed services and services “incident to” personally performed services if: • The bonus is based on the physician’s total patient encounters or relative value units (RVUs); • The bonus is based on the allocation of the physician’s compensation attributable to services that are not DHS payable by any Federal health care program or private payer; or • Revenues derived from DHS are less than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may be paid other profit distributions and productivity bonuses that do not vary based on the volume or value of DHS and that do not violate the Anti-Kickback Statute. No other profit distributions or productivity bonuses may be made to physicians in the group.

SPECIAL RULES FOR PROFIT SHARES AND PRODUCTIVITY BONUSES. Sub-groups within the group may be formed for cost accounting and profit distribution purposes, as long as each sub-group consists of at least five physicians. • Physicians in the group (including independent contractors) may receive a share of group or sub-group profits from “designated health services” as that term is defined in regulations promulgated pursuant to the Xxxxx Act (“DHS”), including but not limited to orthotics and durable medical equipment, if: • Per capita distributions are made. • Profits derived from DHS are distributed on the same basis as profits attributable to services that are not DHS. • Revenues derived from DHS constitute less than. than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may receive a productivity bonus for personally performed services and services “incident to” personally performed services if: • The bonus is based on the physician’s total patient encounters or relative value units (RVUs); • The bonus is based on the allocation of the physician’s compensation attributable to services that are not DHS payable by any Federal health care program or private payer; or • Revenues derived from DHS DRS are less than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may be paid other profit distributions and productivity bonuses that do not vary based on the volume or value of DHS and that do not violate the Anti-Kickback Statute. No other profit distributions or productivity bonuses may be made to physicians in the group.

SPECIAL RULES FOR PROFIT SHARES AND PRODUCTIVITY BONUSES. Sub-groups within the group may be formed for cost accounting and profit distribution purposes, as long as each sub-group consists of at least five physicians. • Physicians in the group (including independent contractors) may receive a share of group or sub-group profits from “designated health services” as that term is defined in regulations promulgated pursuant to the Xxxxx Act (“DHS”), including but not limited to orthotics and durable medical equipment, if: • Per capita distributions are made. • Profits derived from DHS are distributed on the same basis as profits attributable to services that are not DHS. • Revenues derived from DHS constitute less than. than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may receive a productivity bonus for personally performed services and services “incident to” personally performed services if: • The bonus is based on the physician’s total patient encounters or relative value units (RVUs); • The bonus is based on the allocation of the physician’s compensation attributable to services that are not DHS payable by any Federal health care program or private payer; or • Revenues derived from DHS are less than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may be paid other profit distributions and productivity bonuses that do not vary based on the volume or value of DHS and that do not violate the Anti-Kickback Statute. No other profit distributions or productivity bonuses may be made to physicians in the group.

SPECIAL RULES FOR PROFIT SHARES AND PRODUCTIVITY BONUSES. Sub-groups within the group may be formed for cost accounting and profit distribution purposes, as long as each sub-group consists of at least five physicians. • Physicians in the group (including independent contractors) may receive a share of group or sub-group profits from “designated health services” as that term is defined in regulations promulgated pursuant to the Xxxxx Act (“DHSDES”), including but not limited to orthotics and durable medical equipment, if: • Per capita distributions are made. • Profits derived from DHS are distributed on the same basis as profits attributable to services that are not DHS. • Revenues derived from DHS constitute less than. than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may receive a productivity bonus for personally performed services and services “incident to” personally performed services if: • The bonus is based on the physician’s total patient encounters or relative value units (RVUs); • The bonus is based on the allocation of the physician’s compensation attributable to services that are not DHS payable by any Federal health care program or private payer; or • Revenues derived from DHS are less than 5% of the group’s total revenues, and the allocated portion of those revenues to each physician in the group constitutes 5% or less of his total compensation from the group. • Physicians may be paid other profit distributions and productivity bonuses that do not vary based on the volume or value of DHS and that do not violate the Anti-Kickback Statute. No other profit distributions or productivity bonuses may be made to physicians in the group.