Sources: 42 C.F.R. § 1001.952(q)

7. Cooperative Hospital Services Organizations ("CHSOs")

Protects payments from “patron hospitals”—i.e., tax-exempt hospitals that join with other tax-exempt hospitals in CHSOs to provide specifically enumerated services (e.g., billing) solely for the benefit of the CHSO member hospitals—to CHSOs to support the CHSO’s operational costs, and payments from CHSOs to patron hospitals that are required by Internal Revenue Service rules.  The safe harbor only applies where the CHSO is wholly owned by two or more patron hospitals.

Anti-Kickback Safe Harbor