Articles / 02.27.2014

Susan Scheutzow Publishes on Challenges to Physicians’ Compensation

Susan Scheutzow publishes in the February 2014 edition of Journal of Health & Life Sciences Law: “Challenges to Employed Physicians’ Compensation: Direct, Indirect, or Unintelligible Compensation”

Physicians’ Compensation

Abstract: The U.S. Department of Justice has begun to actively challenge relationships between hospitals and their employed physicians as violative of the Stark Law. This Comment reviews in depth the direct and indirect compensation relationships by which hospitals employ physicians and the applicable Star Law exceptions. The plain reading of the Stark Law for hospital-physician subsidiary relationships requires compensation to be related to the volume or value of referrals to qualify as indirect compensation and be subject to the Stark Law. Drakeford v. Tuomey show that the indirect compensation relationship may be established by paying compensation in excess of fair market value or by using improperly constructed noncompete agreements.

To read the article, contact Susan at sos@kjk.com.