tci Medicare Compliance & Reimbursement - 2004 Issue 33

Physicians: Income Guarantees For Recruits Guarantee Pain

Wave goodbye to non-compete clauses for new physicians.Physician practices that partner with hospitals to recruit new physicians will need to pay close attention to the new Stark II self-referral regulations. The "Phase 2" Stark II regs, which took effect July 26, forbid some common practices when hospitals and physicians collaborate on recruitment. Many practices and hospitals have signed agreements with recruited physicians in which the recruiter guarantees the physician a certain salary for the first year. The hospital then guarantees that it will cover the difference between the new physician's actual earnings and that guaranteed salary. In...

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