Physicians looking to enter the market or change positions in an already established career are wise to carefully review the terms of any proposed offer. These offers can include an array of concerning provisions, from noncompete agreements and other restrictive clauses to a “too good to be true” financial compensation.
It may seem counterintuitive, but it is important to carefully review any offers that seem to be out of line with the current market. It is possible that the offer is simply a good deal but there is also the risk that it comes at the risk of exposing yourself to some shady dealings.
What type of shady dealings could impact a medical contract?
Any physician that has taken the time to have a basic understanding of the federal regulations that guide their practice knows that there are strict rules when it comes to compensation — specifically regarding financial partnerships within medicine. Lawmakers designed laws like the Antikickback Statute (AKS) to better ensure that physicians are motivated by patient care not financial gain. To achieve this goal, lawmakers included rules that can criminalize financial relationships with other medical facilities. A physician could invest in a medical facility that they truly believe serves patients well and find themselves running afoul of this law. There are exceptions but it is wise to navigate these relationships with care.
Hospital systems can also find themselves the subject of investigation if they are not wise with the payment packages they offer. In a recent example, the government has accused a system of illegally overpaying physicians who offered services that generated higher profits for the hospital in an attempt to boost its financial standing.
While a significantly higher salary offer in a medical contract can be enticing for any physician, it is important to approach such opportunities with a heightened level of scrutiny. Offers that deviate substantially from industry standards may carry potential risks, including violations of federal regulations such as The Antikickback Statute. Navigating these offers with care not only protects the physician from legal repercussions but also upholds the integrity of their professional practice.
Attorney John Rivas is responsible for this communication.
