tci Part B Insider - 2004 Issue 28

Fraud & Abuse: Income Guarantees For New Recruits Only Guarantee Pain

Wave goodbye to non-compete clauses for new docsIf your practice partnered with a hospital to recruit a new physician to come work for you, then the new Stark II self-referral regulations could lead to nightmares. The "Phase 2" Stark II regs, which took effect July 26, forbid some common practices when hospitals and physicians collaborate on recruitment. Many practices and hospitals have signed agreements with recruited physicians in which the recruiter guarantees the physician a certain salary for the first year, and then the hospital guarantees that it will cover the difference between the new physician's actual earnings...

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