Examine FMV for physicians in administrative roles

Placing physicians in paid positions for administrative roles requires great care because failure to set compensation at fair market value (FMV) could result in criminal or civil penalties based on healthcare fraud and abuse laws. If an agreement between a physician and healthcare organization is audited by federal or state healthcare authorities, the analytical process and documentation to justify the payment of FMV will be essential in defending the physician’s compensation level.

The following discusses the growth of these positions and what organizations should consider when determining how to ensure that the arrangement meets the FMV requirements.