- 16 - second, because Sutter Health's management believed, on the basis of their projections of the financial performance of the UHMG physicians' group after acquisition, that any additional payment for intangibles would have rendered the deal financially nonviable for Sutter Health. Sutter Health's management anticipated that petitioners and the other UHMG physicians could be persuaded to affiliate with Sutter Health through additional incentives, such as being given a management role, through participation in various management committees of SMF and Sutter Health. Many of petitioners were greatly concerned that they not be required to sign any noncompete agreement in connection with their affiliation with a larger health care organization. It was vitally important to them to be able to terminate their affiliation in the event they judged it unsatisfactory and resume the practice of medicine in the Davis, California, area without having to relocate. Many were familiar with the tribulations of physicians in the area who had affiliated with the Woodland Clinic, which required affiliating physicians to sign noncompete agreements. Petitioners were aware that when certain Woodland Clinic physicians sought to terminate their relationships with the clinic, they became embroiled in protracted litigation over 12(...continued) referrals in violation of the antikickback statute. Violations of the statute could result in criminal penalties and/or exclusion from participation in Medicare and Medicaid programs.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: March 27, 2008