Published October 7, 2015

Physician Compensation: Fair Market or Too Much?

The healthcare industry has undergone a series of rapid changes within the past several years, not the least of which is the increased scrutiny of physician compensation. In “Fair Market Value Physician Compensation: How Much Is Too Much?” recently published in the September/October issue of Valuation Strategies, PYA Principals Tynan Olechny Kugler and Lyle Oelrich examine alignment trends and regulatory compliance matters while outlining prevailing compensation models and physician services arrangements.

Article Excerpt:

The threshold for “too much” in compensation for physician services will inevitably vary due to the specific facts and circumstances of each arrangement. There are considerable challenges in the process for determining “how much is too much” due to current regulatory guidance, and non-compliance can carry heavy regulatory penalties. Still, with no end in sight for hospital/physician alignment trends, the demand for an objective process in determining the fair market value of physician services, such as the five-step approach and avoidance of common pitfalls identified herein, may help to mitigate a portion of these inherent risks.

View the article here.

Valuation Strategies is a bi-monthly Thomson Reuters publication.

If your organization has questions about physician compensation or other healthcare valuations or would like to request a speaker on this topic, contact one of the authors listed below.

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