Should Physicians Earn a Management Fee in Physician/Hospital Joint-Venture ASCs?

Q: In ASCs that are a joint venture between physicians and a hospital, is it common practice for the ASC to pay the physician(s) partner a "management fee" independent of the medical director fee?

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Scott Becker, JD, CPA: It is not common for the physicians to earn a management fee for managing a center. In some situations they are actually serving in a true management capacity and do get paid a management fee. Here they may have set up a group to provide management services and the management fee must be fair market value. It is preferred that it be a fixed annual fee.

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