The case involves a group of oncologists that entered into contracts for services that specified the physicians would receive a both a salary and a bonus. The bonus was expected to be drawn from a pool that consisted of 15% of the oncologist departments operating margin. Ironically, in this case, the hospital was made aware a concern for Stark Law violation by hospitals Director of physician Services. The hospital followed through on the concern by retaining a law firm to consult on the bonus pool agreements. The law firm advised the hospital that the pool was legal and within Stark Law regulation because the pool was in compliance with the “bona fide employment exception” because the physicians individual bonus’ were based on the personal clinic production and had no bearing on the referrals. After review in 2011 the courts found that the hospitals were in violation because the pool was based on referrals and billings