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Posted

I would be truly grateful if someone could confirm that the following are affiliated service groups.

Hospital Company has agreed to hire as employees, all the members of Doctors Company who will primarily/exclusively perform services for Hospital Company and will be highly compensated by Hospital Company. There is no common ownership between Hospital Company and Doctors Company.

Hospital Company is a FSO and Doctors Company is a B-Org, despite the lack of common ownership, correct?

I really appreciate any help provided!

 

Posted

Could be.  There is a provision in the B-Org analysis where 10% (or more) of the interest must be held by an HCE (and doesn't necessarily imply direct ownership).

As a rule of thumb, I would NEVER attempt to perform any related employer group analysis without full details; even in situations where the analysis is a slam-dunk.  [Heck, even Michael Jordan missed a few dunks in his career :-) ] 

Good Luck!

CPC, QPA, QKA, TGPC, ERPA

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