QUESTION

How will the physician be compensated?

SHORT ANSWER
Generally, physician employment agreements contain some form of base salary and a bonus.
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The bonus can be based on the physician’s productivity, but the hospital or medical group is barred by federal law from compensating the physician for referrals. The Federal Anti-Kickback Statute, 42 U.S.C. §1320a-7b(b), imposes criminal liability on anyone who gives or accepts payments to induce or reward referrals. While salary and bonuses are critical items to negotiate, the physician’s fringe benefits should also be carefully analyzed and negotiated, including signing bonuses, relocation expenses, loans, health insurance, malpractice coverage, life insurance, disability insurance, professional dues, leave, CME benefits, and retirement plans. Salary and incentive bonuses should be weighed alongside the value of these fringe benefits when evaluating the contract.

ASG Law can advise you with respect to physician-facility or physician-practice group agreements.