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Veralon: Call Coverage for Employed vs. Independent Physicians

(The following is an excerpt from “Different Economics, Different Payment: Call Coverage Stipends for Employed vs. Independent Physicians,” Veralon INSIGHTS, September 2017. Dan Grauman, one of our expert presenters, is the Managing Director and CEO of Veralon Healthcare Management Advisors. For the full article, please see the link below.)


“Physician employment agreements now commonly include compensation for services beyond basic clinical services; they may also provide compensation for medical directorships, teaching, on-call payments, and so on. We have found that physicians transitioning to hospital employment are generally accepting of clinical compensation models that include a base salary coupled with productivity and quality incentives. However, they may not be as accepting of changes in compensation for emergency department (“ED”) call coverage, a highly sensitive component of physician employment arrangements . . .


“Putting aside federal and state regulations (Stark Law, Federal Anti-Kickback Statute, etc.), the economics themselves change fundamentally when an independent physician becomes a hospital employee . . . many physicians, need to be helped to understand this. These compensation changes were required to achieve a compensation package that meets Fair Market Value requirements.


“A valuator would explain the two key factors driving the difference in call coverage compensation between independent and hospital-employed physicians . . . “ (click here to read the full article and review the “valuator.”



A special thank you to Veralon for giving us permission to share this article with you.




Strategic Issues for Boards, iProtean, now part of Veralon’s latest advanced Mission & Strategy course, now appears in your library. It features speakers on cyber-security and the Medicare Access and CHIP Reauthorization Act of 2015—complex topics that stymie many of us! Martin Liutermoza, Global Head of Information Security at Nasdaq, discusses IT security and risk management as well preparing for and mitigating cyber attacks. Seth Edwards talks about MACRA and MIPS versus the Advanced Alternative Payment model.



For a complete list of iProtean, now part of Veralon courses, click here.


For more information about iProtean, now part of Veralon, click here.