Favorable OIG Advisory Opinion Regarding a Hearing Center’s Sublease Arrangements
6/1/2026
On April 28, 2026, the U.S. Department of Health and Human Services, Office of Inspector General (OIG) issued a favorable Advisory Opinion (26-08) regarding a physician-owned corporation’s proposal to establish a centralized center providing items and services to patients with hearing loss who may be candidates for cochlear implants. As part of the arrangement, the corporation would enter into space and equipment subleases with cochlear implant manufacturers, audiologists, and physicians to fill the center.
Because the physician owner and the sublessees would be in a position to refer patients to one another, the arrangement implicates the federal Anti-Kickback Statute (AKS). However, under the proposed arrangement, the physician-owned corporation would receive only fair market value rental payments for the subleased space and equipment, would not receive any additional remuneration from sublessees, and would not profit from the sublease arrangements. No party would provide remuneration for referrals and there would be no requirement or pressure for the parties to make referrals.
Related Practices: Healthcare Law
Related Attorney: Joseph M. Gorrell, Edward J. Yun, Vanessa Coleman
Related Industry: Healthcare
