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Published September 17, 2018

PYA Publishes New White Paper: “Compensating Physicians for Executive and Administrative Services”

PYA, a national management consulting and accounting firm, recently released a white paper that offers guidance for determining appropriate compensation for physicians performing executive and administrative services.   

Industry movement toward greater collaboration between hospitals and physicians is changing the way physicians are employed—and paid. Hospital leaders are more frequently relying on physicians to fill executive roles or positions that are typically more administrative in nature. As a result, accurately determining the value of physician executive and administrative compensation can be akin to driving to an unfamiliar location without directions, GPS, or a map.

PYA takes the mystery out of physician executive and administrative compensation with its recently published white paper, “Compensating Physicians for Executive and Administrative Services.”  Examining a variety of contract considerations— duties and structure, regulatory considerations, compensation methodologies— along with compensation validation and stacking issues, the white paper offers examples and factors to consider in order to enable payment solutions based on fair market value, commercial reasonableness, and in compliance with regulatory rules including the Stark Law and the Anti-Kickback Statute.

“As more physicians continue to assume administrative and executive responsibilities, compensation valuation can become even more complicated,” said PYA Principal Carol Carden. “The benefit to this white paper is that it simplifies what can be a messy, multi-layered concept. It also outlines some of the industry’s benchmark resources and helps address important criteria considered in determining compliant compensation arrangements.”

PYA’s valuation professionals provide well over a thousand fair market value compensation opinions annually for a wide range of financial arrangements entered into by hospitals, health systems, physician practices, and other healthcare entities. Such review is often used to help ensure that compensation arrangements comply with the Stark Law and the Anti-Kickback Statute, including their commercial reasonableness requirements, and any other regulations governing transactions in the healthcare industry.

View White Paper

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