tci Part B Insider - 2004 Issue 28

Fraud & Abuse: Stark II Regs Spell Changes For Physician Recruitment Practices

Prepare to bring contracts into complianceIn the past, physicians and hospitals have signed separate "income guarantee" deals with new physicians that added up to an understanding that the practice would hire the physician, but the hospital would underwrite his/her income. But the new Stark II regulations spell changes for these deals.  For one thing, hospitals and physicians will have to work together more closely on these arrangements, according to Jack Valancy, a consultant with Valancy Associates in Cleveland Heights, OH. And you can wave goodbye to non-compete clauses for new doctors.  Non-compete clauses have often left new...

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