Medical Director Arrangements: FMV Considerations and Tips to Remain Compliant

By: Krista Patterson and Caroline Dean, CVA

The following article was published by the American Health Lawyers Association (AHLA) Fair Market Value Affinity Group.

As the health care industry shifts to value-based reimbursement, the benefits of including physicians in administrative roles are becoming more apparent. Medical director arrangements can be imperative to the smooth operation of a hospital or health care organization. Because physicians can provide firsthand knowledge and experience of providing patient care, utilizing physicians in leadership roles can provide immense benefits including improved quality and efficiency.

Physicians are knowledgeable about the current patient care landscape, as well as the nuances within their specialty and area of expertise. Additionally, they are typically respected and credible among their peers and can often assist in attracting new physician talent. As medical directors are in a position to generate or potentially steer referrals, there has been increased government scrutiny concerning these compensation arrangements. This article will discuss the various regulations surrounding medical director arrangements and key factors that organizations should consider in meeting the regulatory guidelines.

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