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Summary:

Dennis Hursh, an attorney specializing in health care, highlights the importance of comprehending fair market value (FMV) for physicians working independently and those in locum tenens positions. Understanding FMV is essential for guaranteeing equitable compensation and adherence to federal regulations like the Stark Law. According to the Stark Law, FMV is determined through negotiations among knowledgeable parties who are not in a position to generate business for one another and incorporates the idea of “commercial reasonableness.” This principle implies that any arrangement should be logical, even if it does not directly yield profit for the hospital in relation to a specific physician’s services.

Hursh advises locum tenens physicians to appraise their acceptable rates by calculating the total hourly expenses of a similarly employed physician, which includes salary, benefits, and bonuses. For example, the cost for a family medicine physician may surpass $216 per hour. He stresses the need to take into account situational elements such as a hospital’s urgency or difficulties in recruitment, and he encourages physicians to conduct research and inquire to ensure their value is acknowledged.