Structuring Exclusive Contracts Between Hospitals and Physician Groups

Hospitals and medical staffs both strive to provide consistently high-quality care for patients. Alignment between the hospital and staff is essential to meet patient needs successfully. One approach is to utilize exclusive contracts. Hospitals have historically had deals with radiology, anesthesiology, pathology, and ER groups to provide clinical services for those departments. Recently, however, the industry is seeing some expansion to another specialty.

Healthcare counsel, hospitals, physicians, and physician groups must consider several factors when structuring exclusive contracts, including the level of exclusivity, performance standards, payor contracting, compensation, and restrictive covenants. Further, careful structuring is required to navigate Stark Law, Anti-Kickback Statute, tax exemption, and other regulatory issues.

Listen as W. Kenneth Davis, Jr., Partner with Katten Muchin Rosenman LLP, discusses the pros and cons of exclusive contracts with hospitals and the legal issues involved in these contracts between hospitals and individual physicians and physician groups. He will examine the necessary provisions of the agreement and what arrangements are hotly negotiated. He will provide both the hospital and the physician/physician group perspectives.