There is a final point to consider—the Stark Law.

The Stark Law prohibits physicians and hospitals from engaging in financial relationships. Recruitment incentives offered by a hospital to a physician could be construed as a financial relationship. However, the Stark Law contains an exception for physician recruitment, if:

*The arrangement is in writing and signed by both parties.
*The physician is not required to refer patients to the hospital.
*The physician is not paid based on the volume or value of referrals.
*The physician is not restricted from establishing staff privileges at other hospitals.

As is apparent, recruitment arrangements that adhere to HHS safe harbor guidelines should also qualify for the Stark Law exemption.

THE BOTTOM LINE

Given federal physician recruiting laws and regulations, here is recap of what physicians should and should not do.

DO ask the recruiting hospital for some kind of documentation that your service is needed in the community. The greater the need for your services, the more the hospital can offer you.

DO ask to see the hospital's position statement on physician recruiting stating that it is committed to playing by the rules.

DO make sure that all recruiting arrangements and terms are committed to writing and signed by both you and the hospital.

DO NOT sign a contract that obligates you to refer patients to the recruiting hospital.

DO NOT sign a contract that ties your income to volume of referrals sent to the recruiting hospital.

DO NOT sign a contract that prohibits you from obtaining privileges at other hospitals.

DO NOT accept financial offers that are unreasonably high for your specialty.

By adhering to these rules, chances are very good that you will be in compliance with federal physician recruiting laws.