Temp. Reg. § 53-4958-6T(c)(1)(i)(C)—Definition of “Authorized Body”
The temporary regulations provide an organization’s board of directors with broad authority to delegate its responsibilities as an "authorized body" in fulfilling the requirements of the rebuttable presumption. Temp. Reg. § 53.4958-6T(c)(1)(i)(C). The two restraints on delegation are that (1) the board of directors must specify procedures to be followed in approving a transaction and (2) the delegation must be permitted under state law.

In the health-care context it often is efficient to centralize compensation review for several commonly controlled organizations in one of the organizations. Such centralization reduces duplication of efforts and responsibilities across separate organizations and appears to be authorized by the broad language of Temp. Reg. § 53.4958-6T(c)(1)(i)(C). However, because large numbers of physicians and other professionals in a health-care system might be considered disqualified persons, it would be helpful for the regulations to include specific guidance on this point. We suggest adding the following language prior to the period at the end of Temp. Reg. § 53.4958-6T(c)(1)(i)(C): ", including an authorized body of a parent organization or an authorized body of a commonly controlled organization."