What to know about Stark Law and physician recruiting

There are several key Stark Law violations employers need to eye when hiring physicians, JDSupra reported March 31. 

If the physician will not be joining a local physician practice, then recruitment money should be paid directly to the physician. Additionally, the physician must relocate the practice into the hospital's geographic service area.  

This physician can now be a member of the hospital's medical staff, and the hospital and physician must both sign a written recruitment agreement.  

If the physician will be joining a local practice, in addition to the above requirements, the written agreement must also be signed by the physician practice. Additionally, the only money the physician practice can keep is reimbursements incurred by recruiting the new physician. 

If the hospital is making an income guarantee, the practice can only allocate additional incremental costs to the physician for calculating the income guarantee. 

Additionally, the practice cannot impose a restriction that unreasonably restricts the physician's ability to practice medicine in the geographic service area.

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