Today, the U.S. Department of Justice announced that it has entered into a settlement agreement with the Detroit Medical Center, a non-profit entity that owns and operates hospitals and outpatient facilities, for $30 million based on alleged improper financial relationships between the Detroit Medical Center and physicians. The focus of the federal charges were physician office leases and independent contractor arrangements that were either not consistent with fair market value or not memorialized in writing. Today's announced settlement provides another reminder to health care entities that financial arrangements with physicians, such as leases and services contracts, must, at a minimum, be in writing and at rates which are consistent with fair market value. It is very important to implement internal systems and procedures to ensure that leases and other contracts with physicians do not expire, and to ensure that the arrangements meet the requirements of applicable federal laws. To see the press release, click here.