The U.S. Internal Revenue Service (IRS) has issued a memorandum clarifying its position on the subsidization of physicians by not-for-profit hospitals to encourage physicians to implement interoperable electronic health records (EHR) systems. In summary, the IRS will allow hospitals to provide EHR software and technical support services to physicians with staff privileges without violating federal anti-kickback laws. The relevant section states: “We will not treat the benefits a hospital provides to its medical staff physicians as impermissible private benefit or inurement in violation of section 501(c)(3) of the Code if the benefits fall within the range of Health IT Items and Services that are permissible under the HHS EHR Regulations and the hospital operates in the manner described below.” A PDF file of the complete memorandum can be viewed at:
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