Hospital Employment of Physicians: Stark Law and Anti-Kickback Statute Compliance, Physician-Hospital Alignment

Legal compliance complexities, declining reimbursement, and increased operating expenses are driving more physicians to close their private practices and pursue direct employment with hospitals. Hospitals considering hiring physicians must carefully evaluate the implications.

Hospitals must comply with employment and tax laws, the Stark Law, and the Anti-Kickback Statute when selecting an employment/operational model, recruiting physicians, structuring employment contracts, and planning for ongoing physician-hospital alignment.

Listen as our panel of healthcare attorneys explains the key considerations with hospital employment of physicians. The panel will offer strategies for structuring employment relationships that meet federal and state compliance requirements and for negotiating the employment agreement.

I. Legal considerations

A. Evaluating and selecting employment/operational models

B. Anti-Kickback Statute

C. Stark Law exceptions

D. Tax law considerations

E. State law considerations

II. Physician employment contract and ancillary agreements

A. Duties and responsibilities

B. Autonomy

C. Terms and termination

D. Compensation/benefits

E. Incentive pitfalls to avoid

F. Restrictive covenants

The panel will review these and other key issues:

• What are the critical legal concerns of hospitals before and when employing physicians?
• What steps should counsel take to ensure compliance with the Stark Law and Anti-Kickback Statute?
• What are the most successful compensation models for hospitals negotiating employment with physicians?