As hospitals engage physicians in more leadership and management models, it may behoove boards to identify specific obligations as they craft physician leadership compensation contracts, according to an article from INTEGRATED Healthcare Strategies.
Chad Stutelberg, executive vice president and practice leader at INTEGRATED Healthcare Strategies, laid out five principles for boards to consider as they construct compliant physician compensation agreements.
1. Have a written agreement signed by all parties.
2. Make sure the contract specifically describes all of the physician's duties and responsibilities, including administrative and leadership services.
3. Set an aggregate compensation amount that does not exceed fair market value.
4. For medical director agreements, boards must specify when services will be provided, for how long and what the charged rates will be.
5. Contracts should define how physicians document their services and how they maintain appropriate time records showing they fulfilled their outlined duties.
Chad Stutelberg, executive vice president and practice leader at INTEGRATED Healthcare Strategies, laid out five principles for boards to consider as they construct compliant physician compensation agreements.
1. Have a written agreement signed by all parties.
2. Make sure the contract specifically describes all of the physician's duties and responsibilities, including administrative and leadership services.
3. Set an aggregate compensation amount that does not exceed fair market value.
4. For medical director agreements, boards must specify when services will be provided, for how long and what the charged rates will be.
5. Contracts should define how physicians document their services and how they maintain appropriate time records showing they fulfilled their outlined duties.
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