• videocam On-Demand Webinar
  • card_travel Health
  • schedule 90 minutes

Compensation Arrangements With Rock Star Physicians: Key Legal and Fair Market Value Considerations

About the Course

Introduction

This CLE course will guide healthcare counsel on rock star physician compensation arrangements. The panel will offer perspectives on identifying "rock star" physicians and will examine Stark Law, fair market value (FMV), and commercial reasonableness considerations. The panel will offer best practices for structuring rock star physician compensation arrangements.

Description

Certain physicians are renowned locally, regionally, nationally, or internationally for their specialty areas and/or services. These physicians, sometimes known by the colloquial term "rock stars," may be in demand not only for their clinical services but also for their influence and leadership of other physicians and their ability to attract patients, donors, and research dollars.

Compensation for rock star physicians' services can pose challenging legal and valuation questions for hospitals and other healthcare providers that contract for the rock stars' services. As with other physicians, compensation arrangements with rock star physicians may need to comply with an exception to the Stark law and/or with the prohibitions in the federal Anti-Kickback Statute, as well as with the various state laws that regulate the type, purpose, process, and amount of compensation that may be permissible.

Since many rock star physicians are academic physicians who hold appointments at academic medical centers and teaching hospitals that are not-for-profit, tax-exempt, and/or tax-supported, there are sometimes additional legal concerns related to the obligations and restriction on the payor of the compensation under tax-exemption or public financing laws. For all these reasons, ensuring that rock star physicians' compensation arrangements are reasonable and at fair market value is generally imperative. Yet, given their unusual qualifications and lack of comparability to other physicians, establishing reasonableness and FMV can be a challenge.

Listen as our authoritative panel of healthcare counsel discusses the processes and criteria for identifying rock star physicians. The panel will examine Stark Law, FMV, and commercial reasonableness considerations. The panel will offer best practices for structuring rock star physician compensation arrangements.

Presented By

Andrea Ferrari
Senior Counsel
Hancock Daniel & Johnson PC

Ms. Ferrari is a nationally recognized expert on fair market value and commercial reasonableness, the "Big Three" and their role in regulatory compliance, investigations, and litigation. She has authored over 100 publications and presentations on topics related to physician and healthcare provider compensation, contracting, investigations, and related ethical issues. She is known for her work with rural, academic, public, and clinically integrated, value-based healthcare systems. Ms. Ferrari's focus areas include compensation review for compliance with fraud and abuse laws, tax-exempt regulations, antitrust laws, anti-discrimination laws, and assisting clients in transition to value-based payments, including structuring participation agreements, compensation plans and incentive payments in the context of coordinated care and provider alignment strategies, such as clinically integrated networks, ACOs, gainsharing and "Hospital Quality and Efficiency Programs." Prior to joining Hancock Daniel, she was Principal and GC for a national advisory and healthcare solutions firm and a Partner at a well-known national compensation consulting and advisory firm, where she led the service line focused on CINs, ACOs, and other value-based care structures and worked with clinically integrated network and ACO participants across the U.S.

Wesley R. Sylla
Compliance Director - Investigations & Incidents
Ascension Health

Mr. Sylla has a decade of experience in helping hospitals and health systems comply with healthcare's fraud and abuse regulatory framework. Specializing in provider compensation arrangements, Mr. Sylla has used that experience to develop compensation plans, investigate and audit provider arrangements, and resolve problematic arrangements with governmental agencies.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Thursday, December 10, 2020

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. Identifying rock star physicians
  2. The potential legal and regulatory pitfalls in compensation arrangements with rock star physicians, including under the federal Stark Law, Antikickback Statute, tax-exemption requirements such as Section 501(c)(3) and the new Section 4960 of the Internal Revenue Code, and various types of state laws
  3. FMV and reasonableness as appropriate to comply with legal and regulatory restrictions and avoid pitfalls
  4. Best practices for contracting with rock star physicians.

The panel will review these and other key issues:

  • What makes a physician a rock star?
  • The potential legal and regulatory pitfalls in compensation arrangements with rock star physicians, including under the Stark law, Anti-Kickback Statute, tax-exemption requirements such as Section 501(c)(3) and the new Section 4960 of the Internal Revenue Code, and various types of state laws
  • The concepts of FMV and commercial reasonableness as applied to rock star physicians
  • Best practices for contracting with rock star physicians