In the wave of physician practice management transactions, urology is poised to be one of the next hot sectors. In addition to the issues to consider in connection with any physician practice transaction, below we discuss five key regulatory risks to consider when investing in a urology practice.

1. IMRT and Utilization Rates -

Intensity-modulated radiation therapy (IMRT) is a common treatment for cancer, including prostate cancer. Several studies have documented that urologists with an ownership stake in the IMRT are more likely to treat patients with IMRT than urologists without ownership. These studies have led to additional focus on all financial relationships with the urologists, necessitating thorough diligence to ensure compliance with the federal Stark Law and state self-referral laws. When evaluating urology practices, it is important to closely review and analyze the financial relationships between the referring urologist and the entity providing IMRT services, whether that be the practice itself or a third-party radiation therapy provider.